Wall Street set to increase bonuses for first time in three years

After enduring the economic hardship of the pandemic and the floundering Biden Administration, Wall Street says they are doing better than ever. So good, in fact, they are set to pay out higher bonuses this year, the first increase since 2021. Recent months have seen an uptick in deal-making. Combine that with the cutting of interest rates, and you have a surging stock market that is touting wins.

But at the expense of that bonus has come the middle American business owner, who are all facing hardships they have never before seen. Many can barely even afford to keep staff on the payroll. Meanwhile, Wall Street is ready to give out fat bonuses to people who are already filthy rich.

Joel Griffith of the Heritage Foundation says businesses are struggling to survive in the economy created by Biden.

"Many are finding they cannot pass along all the costs and stay in business...so they are trying to cut profit margins, so their profits are actually shrinking," he says.

The raises are not the biggest we have ever seen though, compared to the record levels in 2021. That was during a boom period post-pandemic, where there was abnormally good revenue and compensation. Which is no surprise, considering people were locked in their homes for six months.

The largest bonus increases will end up in the hands of investment bankers, going up between 25 and 35 percent. That is mostly due to booming revenues resulting from debt issuance growth.

But a large majority of the problem, according to Griffith, is the government overspending, which essentially pits Wall Street against Main Street.

"Companies often finance their operations and expansion by borrowing funds...you then have government and businesses competing for the same pot of cash to fund operations...which then drives up interest rates," he says.

Traders and equity writers are also set to see huge bumps near 10 percent or more in this round of bumps.

This is happening because of a thriving stock market at the moment, but are the numbers actually real? Inflation says they are not.

"The inflation rate overall has made these returns appear to be a lot more generous than they otherwise were," he says. "Adjusted for inflation, overall growth has been closer to 20 percent, rather than the 40 percent a lot have seen."

Griffith adds that cutting back on government spending, and the heavy regulations, will help both the market and businesses thrive more.

Other areas in the banking sector are expected to see bonuses remain relatively flat or even decline due to sluggish activity.