Financial capital both depends on and disciplines industrial production for returns

Evidence

All capitalists are in essence financiers, faced with the choice of investing in one thing or another and pursuing the most profitable opportunities. Nonetheless, capital is divided into fractions: Finance plays a specific role in the overall structure of accumulation, competitively circulating investment across the various branches of production. Finance depends on industrial profits to receive interest, while industry engages with the financial system to raise investment and circulate capital. — Clara E. Mattei, Escape from Capitalism, 419

Categorization

• DEFINE: Defines the relationship between finance and industrial fractions of capital, a foundational conceptual framework for the austerity argument.
• XREF: Connects to Marx’s distinction between money and productive capital and to the finance-capital debates of Hilferding and Lenin. — connects to: Finance and industry form interdependent but distinct fractions of capital; Financial crashes correct overextended finance relative to depressed industrial production — Alex Callinicos, Against Postmodernism: A Marxist…, 530; Regulatory use of CAPM could generate model-compliant returns but remains untested empirically — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 1150 (+5 more)

Broader Connections

• Finance and industry form interdependent but distinct fractions of capital #expands (0.92)
• Financialization both derives profits from finance and drains capital from productive investment #expands (0.90) — Natascha van der Zwan, Making Sense of Financialization, 29
• Financial crashes correct overextended finance relative to depressed industrial production #expands (0.85) — Alex Callinicos, Against Postmodernism, 530
• Start-up investment expresses financial centrality rather than escaping it #exemplifies (0.80) — Nick Srnicek, Platform Capitalism, 96
• Finance is an essential fix for capital’s overproduction tendency, not mere elite skulduggery #responds-to (0.80) — Max Haiven, Cultures of Financialization, 101
• Financialization theory rejects bank dominance in favor of integrated finance-industrial capital #qualifies (0.78) — Greta R. Krippner, The Financialization of the American…, 133
• Regulatory use of CAPM could generate model-compliant returns but remains untested empirically #exemplifies (0.72) — Donald MacKenzie, An Engine, Not a Camera, 1150