January 26, 2009
bowlingalleylawyer: insomnambulance: lilyb: Graph of Wages in the Financial Sector 1910 til now. Source: Wages and Human Capital in the U.S. Financial Industry: 1909-2006. Thomas Philippon Ariell Reshef Via I’d like to know where the fuck all that money was. One of the things that tends to be lost in this discussion is that wage distribution in financials tends to be incredibly concentrated - it’s a tournament system. The closest analogue is the drug distribution industry, in which foot soldiers make a relative pittance compared to the immense wealth of the powerful few who own the relationships. Also, the impact of credit on the 30 and 07 collapses relative to the impact of credit creation on financial industry wages AND economic output generally means you were bound to have a disproportionate impact on the y-value of that graph. You’re diagnosing the expansion of credit, not the expansion of wages. is that Chinese up there? I have no idea what you just said, but it sounds brainy so I am reblogging it.

bowlingalleylawyer:

insomnambulance:

lilyb:

Graph of Wages in the Financial Sector 1910 til now.

Source: Wages and Human Capital in the U.S. Financial Industry: 1909-2006. Thomas Philippon Ariell Reshef

Via

I’d like to know where the fuck all that money was. One of the things that tends to be lost in this discussion is that wage distribution in financials tends to be incredibly concentrated - it’s a tournament system. The closest analogue is the drug distribution industry, in which foot soldiers make a relative pittance compared to the immense wealth of the powerful few who own the relationships. Also, the impact of credit on the 30 and 07 collapses relative to the impact of credit creation on financial industry wages AND economic output generally means you were bound to have a disproportionate impact on the y-value of that graph. You’re diagnosing the expansion of credit, not the expansion of wages.

is that Chinese up there?

I have no idea what you just said, but it sounds brainy so I am reblogging it.

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