Financialization marks a decisive shift from production-based to finance-driven accumulation.

Evidence

Financialization describes a historical trend since the late twentieth century in which finance and financial considerations became increasingly central to the workings of the economy. The concept of financialization gained significance particularly because it marks a fundamental discontinuity between the postwar economy, driven by industrial production and trade of goods, and the current economy, focused mainly on financial indicators. Reflecting this historical transition, Krippner (2005) defines financialization as “a pattern of accumulation in which profits accrue primarily through financial channels rather than through trade and commodity production” (p. 174). — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 19

Categorization

• DEFINE: Gives the canonical Krippner definition of financialization, useful as the anchor definition for the whole survey.
• XREF: connects to: Stagnating growth plus deregulation pushed firms from production into financial investment — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 41; Major nonfinancial corporations shifted their earnings toward financial operations — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 45; Financialization means accumulation through financial channels rather than production — Greta R. Krippner, The Financialization of the American…, 11 (+5 more)

Related

• Financialization is a pattern of accumulation dominated by financial channels over trade and production (similarity 0.94)
• Financialization means accumulation through financial channels rather than production (similarity 0.93)
• The US economy became increasingly financialized in the post-1970s period. (similarity 0.89)
• Financialization comprises both finance-sector dominance and nonfinance firms’ financial investing. (similarity 0.89)
• Financialization must be measured by profit generation, not employment or output (similarity 0.87)
• Financialization ultimately represents markets displacing social institutions as society’s organizing principle. (similarity 0.86)
• Financialization both derives profits from finance and drains capital from productive investment (similarity 0.85)
• Financialization shifts capital intermediation from institutions to markets. (similarity 0.85)
• Financialization scholarship spans three approaches with distinct analytic foci. (similarity 0.85)
• Financialization theory rejects bank dominance in favor of integrated finance-industrial capital (similarity 0.84)
• Financialization is measured as the ratio of financial receipts to business receipts. (similarity 0.84)
• The financialization literature lacks a unified definition across four competing usages (similarity 0.84)
• Finance has come to dominate American economic life. (similarity 0.84)
• Scholars asserted financialization’s existence without providing direct evidence (similarity 0.84)
• Financialization lacks rigorous empirical evidence defining its timing and magnitude (similarity 0.83)

Broader Connections

• Financialization means accumulation through financial channels rather than production #corroborates (0.95) — Greta R. Krippner, The Financialization of the American…, 11
• Financialization is a pattern of accumulation dominated by financial channels over trade and production #corroborates (0.90) — Greta R. Krippner, The Financialization of the American…, 42
• Financialization both derives profits from finance and drains capital from productive investment #expands (0.80) — Natascha van der Zwan, Making Sense of Financialization, 29
• The shift to finance capitalism is nonlinear, not a clean rupture #qualifies (0.80)