I read, "And what if you don't create wealth?" In DK, by Kagro X (Sat Jan 31, 2009 at 01:30:04 PM PST) http://www.dailykos.com/...
SusanG was referenced about how Wall Street regards capping bonuses as socialism and apparently copied from a NYT article, saying that ,""On Main Street, ‘bonus’ sounds like a gift," "But it’s part of the compensation structure of Wall Street. Say I’m a banker and I created $30 million. I should get a part of that."
Simply said then ,as I see it, one produces and then one is entitled to get part of what one produced because that is the way the system works.
Simply said then, you PRODUCE ( in a business vernocular sense of the word ) and your entitled to get part of what you produce because that is the way the system works and that all makes sense to me in my trying to be logical but with very little personal business experience myself.
Produce what?
Well, in a situation that I am aware of, "what" was producing money for a major bank that a person worked for for many years, and producing it by virtue of his developing and merchandising "Derivative" packages for organizations which felt that what he and his bank came up with served a purpose for their business that they were willing to pay for.
For that service provided, said employee and his employer bank had client businesses that were willing to give up large sums of money by transferring it to the employee’s employer bank as agreed to by a mutually negotiated contract.
Now by years end, multiple businesses had transferred many, many millions of dollars to the bank for services rendered and the employee received substantial year end bonuses as his portion of the millions that he was instrumental in having had transferred to the bank.
Then Kagro X went on to say: "So, say you're a banker and you flushed $30 million down the toilet, which is the "actual scenario’ we're looking at."
Now the situation as I related it above ( bank employee etc.) was an ‘actual scenario’ and it was repeated annually with the money transferred from businesses to bank increasing yearly primarily due to the employees increasing expertise, increased work hours and increased time away from family due to his business travels.
So, Inow have the need to ask, was "money flushed down the toilet" in some way by the business transfer of money to bank and on to employee as a bonus?
Have I been confused because Kagro X did not define what was meant by wealth when he wrote,"About Not Creating Wealth"
When I googled ‘creating wealth" I found an article titled," How to Make Wealth"
at http://www.paulgraham.com/...
The author wrote,"Wealth is what you want, not money. It is a kind of shorthand (he said): money is a way of moving wealth, and in practice they are usually interchangeable".
If this definition can be accepted as being accurate what then, if anything, was wrong in the business transaction of moving wealth (read money) as I outlined it above, especially in regard to the bonuses the employee received which at its top hit one million?