Tuesday, June 22, 2010

Clearly there was something wrong with this...

From Brad DeLong's blog he quotes this article:

From 1973 to 1985, the financial sector never earned more than 16 percent of domestic corporate profits. In 1986, that figure reached 19 percent. In the 1990s, it oscillated between 21 percent and 30 percent, higher than it had ever been in the postwar period. This decade, it reached 41 percent. Pay rose just as dramatically. From 1948 to 1982, average compensation in the financial sector ranged between 99 percent and 108 percent of the average for all domestic private industries. From 1983, it shot upward, reaching 181 percent in 2007.

I'm a true believer of the contribution to society by financial instutions, but when they are generating more profits than other industries, there is clearly something wrong going on....

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