Financialization is a recurring signal of a declining economic hegemon, not a novel event.

Evidence

Related to this, world-systems theorists connect this stage theory of capitalism to the history of world hegemony and understand financialization as an effort to protect American hegemony in the world polity (Arrighi 2010). These theorists argue that similar transitions to finance happened in previous transitions, such as the final decades of Genoese, Dutch, and British hegemony, when new hegemons arose to replace those in decline. Financialization in this account is a an indication of imminent decline for economic great powers. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 30

Categorization

• XREF: Connects to Arrighi’s ‘The Long Twentieth Century’ and world-systems theory on hegemonic cycles from Genoa to Britain.
• CANDY: A neat reversable: financialization seen as decline’s harbinger, not vitality — easy to relay in conversation.

Related

• Financialization is a political project tied to US hegemony, not a market efficiency outcome. (similarity 0.84)
• Financialization is a pattern of accumulation dominated by financial channels over trade and production (similarity 0.82)
• Financialization accelerated through 1970s-80s deregulation and state support (similarity 0.81)
• The US economy became increasingly financialized in the post-1970s period. (similarity 0.80)
• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.80)
• Financialization involves new forms of state intervention, not state retreat. (similarity 0.80)
• Arrighi and Phillips asserted financialization without empirical support (similarity 0.79)
• Financial expansion reliably signals the late autumn of each hegemonic power. (similarity 0.79)
• Scholars asserted financialization’s existence without providing direct evidence (similarity 0.79)
• Reading finance as a Keynesian aberration is a shared liberal and Marxist error (similarity 0.78)
• Financialization scholarship spans three approaches with distinct analytic foci. (similarity 0.78)
• Financialization does not yield uniform convergence across national contexts. (similarity 0.78)
• Financialization is integral to capitalism, not a product of deregulatory excess (similarity 0.78)
• Financialization ultimately represents markets displacing social institutions as society’s organizing principle. (similarity 0.78)