Why Do Bankers Get Paid So Much?

Especially, in the wake of the financial collapse, many have wondered why bankers get paid so much. Why don’t people like teachers, social workers and, ahem, journalists get paid more? Turns out, there’s quantifiable data that says those workers add more value to society than bankers.

The BBC reports that the New Economics Foundation, creators of the Happy Planet Index, conducted a study to look into the actual value of certain professions. What they found? Jobs like childcare workers and hospital cleaners add a much greater value (yes, as in money!) to society than their salaries might suggest.

Meanwhile, not only are professions like banking adding less than they take, they are actually harming society at large.

"Rather than being wealth creators bankers are being handsomely rewarded for bringing the global financial system to the brink of collapse. Paid between £500,000 (about $812,000 US) and £80 million (about $130 million US) a year, leading bankers destroy £7 ($11 US approx.) of value for every pound they generate," the report says.

Childcare workers on the other hand, besides providing "a valuable service for families, they release earnings potential by allowing parents to continue working. For every pound they are paid they generate up to £9.50 (about $15 US) worth of benefits to society."

Maybe it’s time to close that wage gap?

Photo courtesy Rob Lee via Flickr.