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Home Publications Blogs Beat the Press Marketplace Radio Says We Need Wall Street Bankers to Spend Money

Marketplace Radio Says We Need Wall Street Bankers to Spend Money

Tuesday, 07 January 2014 06:27

Marketplace radio says that we should be happy for those big Wall Street bonuses because they lead to more spending and job creation. Of course spending by the Wall Street boys creates jobs, but the same is true of spending by drug dealers and bank robbers. It is a bit peculiar that a news show would try to use this fact as a justification for bonuses that arguably stem from rent-seeking activity that provides no benefit to the economy.

Comments (14)Add Comment
The Economic Multiplier of Economic Predators
written by Last Mover, January 07, 2014 8:02
The New York catering company Sonnier & Castle produces elaborate dinners that cost hundreds of dollars per person. Recently, it catered the movie premiere of "The Wolf of Wall Street."

“A third of our business comes from the financial industry,” estimates co-founder David Castle. “Bonuses would be great for us. It would definitely translate into bigger spending and to more hiring, more jobs.”

Wow. What an insight. Imagine how much business for the fast food industry comes from the financial sector as well when they're out to grab a quick bite on Wall Street.

More bonuses would translate into bigger spending and more hiring of fast food workers.

Another message from the MSM sock puppets of economic predators on basic arithmetic. Any spending is better than no spending.

Be grateful for your fast food job. Support a larger financial sector.
Public Radio
written by bakho, January 07, 2014 8:19
It hasn't been truly "public" radio for decades. It has corporate sponsors that must be stroked. Public radio is pro-business and has numerous programs discussing business and investing.
written by Kat, January 07, 2014 8:55
Workers in the hospitality industry are such a versatile part of the low wage service sector. In this story they serve as a reason to support high Wall Street Bonuses. In other stories they serve as a reason to forget about minimum wage increases-- they're low productivity, wage increases would only lead to layoffs, and we'd be better served in investments that help them upgrade their skills. In my town, they have also been useful in justifying low income housing tax credits that were given to a developer that produced market rate housing. Justified, because restaurant jobs would spring up around these market rate townhouses. This in turn would entice more higher wage workers to the area which would in turn spur more growth of lower wage jobs, which would in turn...
If it all seems a bit too circular for you, be like the reporters at Marketplace. Just don't think too hard.
Oh, I see ...
written by Squeezed Turnip, January 07, 2014 9:14
So if I squeeze another drop of turnip blood in order to pay for grifter executive bonuses then catering companies will benefit? Wow, count me in! ;-P
Look at the readers/listeners comments that NPR posted
written by John Wright, January 07, 2014 9:29
These comments were actually allowed on the NPR website.

It would be great if they would read them over the air.

One person wrote:

"Mark Garrison's so-called journalism is a disgraceful Apologia for TRICKLE-DOWN REAGANOMICS. It sounded like a press release from some right wing think-tank or, dare I say it, straight from the mouths of the Koch brothers"

Another wrote:
"This segment just reduced Marketplace and NPR to the level of Fox News. If this were April 1 I would suspect that perhaps it was presented as a tongue in cheek bad joke. When my wife and I heard it we just looked at each other and shook our heads in disbelief."

Yet another wrote:
"I set up an account to join the chorus decrying this story. The benefits of a few local businesses that cater (literally) to these bankers do not compare to the loss of billions of dollars in the economy due to shady banking practices. This sounded like a story that had been written and sold to NPR by some PR firm to try to convince your listeners that we should cut the bankers a break because their obscene bonuses in some way drive our economy. The fines levied against these banks do not match the profits they made on the backs of their investors. I was disappointed in this story and do not know that I will continue to listen to Marketplace."

NPR attracts advertisers because of its better educated audience.

Maybe NPR needs to remember this when it produces content otherwise it will lose its audience and then the ability to be a well-paid "presstitute".
written by Matt, January 07, 2014 10:28
For fun, I'd love to see a story where Wall Street banks decry the need to pay bonuses and claim that it would "reduce employment opportunities" for traders.

You know, the same story everybody runs every time an increase in the minimum wage is brought up, just with "minimum-wage workers" replaced with "traders" throughout. Funny how "the economy expands if you give people moar money" only seems to apply to *some* people.
written by Ryan, January 07, 2014 11:22
Isn't the marginal propensity to consume higher when each additional dollar of income represents a relatively large income increase? Wouldn't it make more sense to give more money to people who don't have a lot if the sole reason is to improve the economy?
written by dick c, January 07, 2014 11:27
What percentage of those bonus dollars goes toward job creation and how much toward investments that amount to nothing more than extraction of rent from the 99%. I know that much less of my income is available for me to spend locally.
written by PeonInChief, January 07, 2014 11:49
Many middle-class people believe that they do good by doing well, and more than one of them has suggested that were it not for their spending, low-wage workers would not have jobs. I am too kind to describe it as the smug, self-serving, sanctimonious twaddle it is.
Mystery: 'Trickle Down' Not Mentioned Anywhere in Broadcast -- Except in URL
written by leo from chicago, January 07, 2014 12:35
Interesting how the only mention of 'trickle down' is as part of the URL -- and nowhere else in the original broadcast.
written by sufferingsuccatash, January 07, 2014 1:51
As a drug dealer I am offended to be linked in the same comment with the sleaze working in the banking sector. However, they do comprise most of my best and high volume customers.
written by djb, January 07, 2014 3:08

of course the obvious is if the had a lower percentage of the money supply and poor and middle class had a larger percentage of the money supply

then much spending would be done , as the poor and middle class spend a larger percentage of their money

mr castle is doing well, i am so happy for him

Turn the dial
written by jd351, January 07, 2014 5:57
In past I listen to NPR on a regular basis and thought they were a reliable new organization... Not anymore, I went cold turkey, and changed the station. They have lost all credibility. I no longer support NPR with cash donations. I am speaking with my pocket book.... Let them eat cake
written by nineteen50, January 07, 2014 6:57
They should be glad my social security check increased and I will be spending more.

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About Beat the Press

Dean Baker is co-director of the Center for Economic and Policy Research in Washington, D.C. He is the author of several books, his latest being The End of Loser Liberalism: Making Markets Progressive. Read more about Dean.