We live in a capitalist society, what you earn is usually a proportion of how much money you can make someone else or a company.
Admittedly for people already in a career its difficult to move elsewhere, but if you're the type of person that prioritises a salary then you'll go to the type of career that pays well, and will work to get into it. Obviously doctors get paid well, but they have to spend 7 odd years training to get there. There won't be any nurses doing it for the money as if they put that as a priority they'll go elsewhere.
I'd personally agree with tying MP's wages to a national average - then keeping it in line with the average and inflation.
With regards to banking, yes, some people do get paid very, very well. But they also have to work their arses off to get there.
As some of you may know, I work in finance. At the moment I'm working in a brokerage and I earn a decent wage, but I'm looking to move to investment banking at one of the big international banks (hopefully Citibank).
I will be earning what would be classed as a very good wage there - starting salary for an analyst in front office is about 45k, you'll get a 4ish k sign on bonus, and then as a first year your bonus will likely be be about 25% of your salary, assuming your team makes money and the bank doesn't lose out massively (the actual investment banking division of most banks is usually a profit making section).
So, annual salary for a first year is about £60k (roughly). Fantastic sum of money for a starting salary, but lets break it down:
Firstly, if you've not got a degree, look elsewhere. I was lucky and paid £3.5kish for my undergraduate tuition fees for three years, plus I stayed on for a masters which cost another £9k. I've come out of uni with about £30k of debt (including living costs borrowed) for my degrees. Anyone following me now pays £9k a year in tuition fees, so would have about £45k in debt.
Then, after tax and NI based on a salary of £60k you actually bring home about £42k. Still a bloody good salary!
But the hours are grim. 100 hour weeks are normal, 70 hour weeks are considered good. This is not an exaggeration, most guys I know get one, maybe two weekend days off a month. Because of this, you have to work close to your office - all the analysts I know house-share, and in central London you're still looking at around £800-£1000 minimum for that, so now you're bringing home £32k. Still a good salary, until you work it out on an hourly wage.
So for an IB analyst, earning £60k, renting for about £10k a year, you'll be bringing home £32k. Based on a 90 hour average week, you're bringing home the grand total of £6.83 an hour.
Alternatively, earn the national average wage of £26,500, work a normal 40 hour week, and live somewhere for about £6k a year (terraced house in Kent for example), and you're earning £21k a year after tax, and you're earning £10.09 an hour.
Yes, the pay is good. Is it worth it? That's entirely for the person to decide.
