Financialization – “a pattern of accumulation in which profit making occurs increasingly through financial channels rather than through trade and commodity production.” – Greta Krippner, University of Michigan (sourceWikipedia)
If you want one word to describe the biggest threat to the American economy, “financialization” would be the prime candidate. This is a threat that has no ideology. The left tends to blame economic challenges on the excessive power of oligarchs. The libertarian right tends to blame economic challengeson excessive regulations emanating from oversized government. But financialization empowered the oligarchs. And financialization is the toxic remedy that has, for a time, enabled oversized government.
Krippner’s analysis of financialization goes beyond its obvious manifestations – the most obvious being the loophole that allows hedge fund managers to avoid payingordinary income tax on the billions in bonuses they earn when they get lucky placing bets with other people’s money. An excellent in-depth… Read More