American Airlines gave its workers a raise. Wall Street freaked out (2017)

[rbanffy]

https://www.vox.com/new-money/2017/4/29/15471634/american-airlines-raise

[tyingq]

"We are troubled by AAL's wealth transfer of nearly $1 billion to its labor groups" - JP Morgan’s Jamie Baker

That's pretty funny. Hijacking the "wealth transfer" phrase to describe a raise for workers.

[bshipp → tyingq]

And from JP Morgan, of all companies. One of the numerous investment houses that took government bailout money and used it to give all their staff giant bonuses in 2008 and 2009.

[CPLX → tyingq]

It’s the labor groups that created the fucking wealth in the first place.

If they don’t still have it that’s the wealth transfer we should be keeping an eye on.

[quantified → CPLX]

You haven’t bought the line that says the labor groups should be grateful to be able to create more wealth?

[salawat → quantified]

How could they? They probably aren't getting pay raises sufficient to keep up with inflation!

[ulfw → tyingq]

That's rich coming from a banker whose whole raison d'etre is wealth transfer to labour groups (people like himself living on fat bonuses)

[wolpoli]

“This is frustrating. Labor is being paid first again,” wrote Citi analyst Kevin Crissey in a widely circulated note. “Shareholders get leftovers.”

Yes, shareholders get all the money left after paying for expenses, which include labor cost. That's how it works.

[quantified → wolpoli]

I guess Crissey is mostly compensated with stock…

[anm89]

What does he proposed to do? Should congress start setting stock prices? Otherwise you are going to have to accept that stock prices can fall based on business decisions.

Also old.

[rbanffy → anm89]

> Should congress start setting stock prices?

Maybe bailouts should be accomplished as stock purchases by the government at a price set by the government. If the price the government wants to pay is too low, others will bail out the company.

[Graziano_M]

(2017). Vox is trash, and this is especially editorialized. Matt Yglesias has actually left Vox (he's a co-founder)