Financial markets reshaped households, corporations, and states over the past 30 years.

Evidence

Over the past 30 years, financial markets became increasingly central to the daily activities of households, corporations, and states. Families became enmeshed in financial markets as their pensions and college savings were invested in mutual funds and their mortgages, auto loans, credit card accounts, and college debt were turned into bonds and sold to global investors (Krippner 2011). Corporations now asserted that they existed to create shareholder value and adopted a host of structures and strategies to demonstrate their primary allegiance to their shareholders (Fligstein & Shin 2007, Zuckerman 1999). After the bust-up takeover wave of the 1980s, the bloated conglomerates that provided long-term employment and stable retirement benefits were replaced by disaggregated corporate structures sanctioned by financial markets through higher valuations (Davis 2013). States around the world also adopted finance-friendly policies, from reducing capital controls and creating domestic stock markets to rendering their central banks independent from political oversight (Polillo & Guill´en 2005). — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 10

Categorization

• XREF: Connects to the reader’s knowledge of financialization scholarship — Krippner, Fligstein & Shin, Davis — and how this survey maps onto the author’s own ‘Grafting & Growth’ piece on infrastructure, here extended to financial infrastructure. — connects to: The US economy became increasingly financialized in the post-1970s period. — Greta R. Krippner, The Financialization of the American…, 5; The finance culture took root in the upper-middle class. — Neil Fligstein & Adam Goldstein, The Emergence of a Finance Culture in…, 65; Households are pushed into financial markets that promise lifestyle advancement. — Neil Fligstein & Adam Goldstein, The Emergence of a Finance Culture in…, 34 (+10 more)

Related

• Finance has come to dominate American economic life. (similarity 0.87)
• The US economy became increasingly financialized in the post-1970s period. (similarity 0.87)
• Financialization shifts capital intermediation from institutions to markets. (similarity 0.85)
• Financialization ultimately represents markets displacing social institutions as society’s organizing principle. (similarity 0.84)
• Households are pushed into financial markets that promise lifestyle advancement. (similarity 0.83)
• Research on household financialization remains fragmented across separate markets (similarity 0.83)
• Financialization accelerated through 1970s-80s deregulation and state support (similarity 0.83)
• Financialization forced households to adopt a proactive finance culture beyond just consuming more debt. (similarity 0.82)
• Financialization resulted from deliberate deregulatory political choices, not market forces. (similarity 0.82)
• The finance culture took root in the upper-middle class. (similarity 0.82)
• Financialization is a pattern of accumulation dominated by financial channels over trade and production (similarity 0.82)
• The state actively drives financialization through policy, while individuals internalize its risk discourses. (similarity 0.81)
• Finance has become the primary arbiter of policy and value across daily life (similarity 0.81)
• Financialization expanded by selling financial products directly to households (similarity 0.81)
• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.81)

Broader Connections

• The US economy became increasingly financialized in the post-1970s period. #corroborates (0.95) — Greta R. Krippner, The Financialization of the American…, 5
• Financialization accelerated through 1970s-80s deregulation and state support #expands (0.90) — Andrew deWaard, Derivative Media, 488
• Financialization fragments corporate, state, and individual horizons into short-termism #expands (0.90) — Max Haiven, Cultures of Financialization, 138
• Financialization shifted corporate power from manufacturing and marketing executives toward financial executives. #exemplifies (0.90) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 21
• Financialization shifts capital intermediation from institutions to markets. #expands (0.85) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 5
• Finance has come to dominate American economic life. #corroborates (0.85) — Greta R. Krippner, The Financialization of the American…, 7
• Financialization expanded by selling financial products directly to households #expands (0.85) — Neil Fligstein & Adam Goldstein, The Emergence of a Finance Culture in…, 10
• The finance culture took root in the upper-middle class. #exemplifies (0.80) — Neil Fligstein & Adam Goldstein, The Emergence of a Finance Culture in…, 65
• Households are pushed into financial markets that promise lifestyle advancement. #exemplifies (0.80) — Neil Fligstein & Adam Goldstein, The Emergence of a Finance Culture in…, 34
• Upper-middle households increasingly treated homes as leverage assets. #exemplifies (0.80) — Neil Fligstein & Adam Goldstein, The Emergence of a Finance Culture in…, 66
• Financialization reshapes cultural industries through macroeconomic shifts. #exemplifies (0.80) — Andrew deWaard, Derivative Media, 58
• Opacity of financial instruments extends into social and political life. #expands (0.78) — Aris Komporozos-Athanasiou, Speculative Communities, 60
• Finance shapes modern societies’ collective myths and imagined communities, not just economies #expands (0.78) — Aris Komporozos-Athanasiou, Speculative Communities, 19