Mind the Gap: Bumper Bonuses Are Back, yet Millions Struggle On Welfare in Us

Summary

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GROWING inequality at the heart of the US economy is being laid bare this holiday season. Conspicuous consumption is back on Wall Street, in anticipation of bonuses close to pre-recession levels. Some American companies have just posted the largest quarterly profits ever. Meanwhile, one in five families is relying on food stamps to get by and unemployment remains stuck at around 10%.

For three years, since massive government bailouts of the financial system, New York's bankers, traders and hedge fund managers have been wary of flaunting their wealth - many remember the outrage that greeted revelations that Merrill Lynch chief executive John Thain had bought a $35,000 toilet, as his firm imploded. Last Christmas, Citigroup chief executive Vikram Pandit told employees: "We will be judged in the court of public opinion."

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Mind the Gap: Bumper Bonuses Are Back, yet Millions Struggle On Welfare in Us

But this year, shameless extravagance is making a comeback. One investment analyst booked hip-hop star Lil' Kim for his Halloween party. Another paid Playboy bunnies to dance for g...

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