Monday, January 10, 2011

Why I Think Big Bonuses For Bankers Are A Good Thing

I'm getting fed up of hearing people bang on about banker's bonuses.

I'm quite happy for a banker based in the UK to be paid a large bonus.

Firstly - the bonus is taxed.
Secondly - much of the remaining income will be spent, and depending on what it is spent on, subject to VAT.
And finally, the spending will be on services, provided by companies which employ people, and products, manufactured by companies which employ people.

I could be jealous of their bonuses, but quite frankly I wouldn't want to work those long hours in such an environment.

Would it be better for the banks to keep the money?

Rant over.