I remember reading Tyler Cowen's defense of executive pay
in 2006, and thinking what a brilliant explanation it was for why so few people were paid so much.
Better executive decisions create more economic value. ... the rate of productivity growth in the United States has been the envy of the world.
It made sense then. But does it still make sense after a $700 billion bailout?
Workers at 23 top investment banks, hedge funds, asset managers and stock and commodities exchanges can expect to earn even more than they did the peak year of 2007, according to an analysis of securities filings for the first half of 2009 and revenue estimates through year-end by The Wall Street Journal.
These employees will rake in $143,400 this year -- 2,000 dollars more than in 2007. I'm not sure how that fits in with the supposed "collapse" of the industry, and the U.S. Treasury forking over billions of dollars in bailout money.