Financialization means accumulation through financial channels rather than production

Evidence

I define financialization as a pattern of accumulation in which profits accrue primarily through financial channels rather than through trade and commodity production (see Arrighi, 1994). ‘Financial’ here refers to activities relating to the provision (or transfer) of liquid capital in expectation of future interest, dividends, 1For a similar use of Merton in the context of a related debate,see Zeitlin (1974). — Greta R. Krippner, The Financialization of the American…, 11

Categorization

• DEFINE: The canonical definition of financialization that grounds the entire field — worth preserving verbatim for reference.
• XREF: connects to: Financialized valuation imposes short-termism and disconnects decisions from material production. — Ève Chiapello, Financialisation of Valuation, 41; Financialization channels income toward the wealthy and depresses productive investment and wages. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 24; Stagnating growth plus deregulation pushed firms from production into financial investment — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 41 (+16 more)

Related

• Financialization is a pattern of accumulation dominated by financial channels over trade and production (similarity 0.95)
• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.93)
• Financialization comprises both finance-sector dominance and nonfinance firms’ financial investing. (similarity 0.85)
• The financialization literature lacks a unified definition across four competing usages (similarity 0.85)
• Financialization must be measured by profit generation, not employment or output (similarity 0.84)
• The US economy became increasingly financialized in the post-1970s period. (similarity 0.83)
• Financialization does not measurably raise firm profits or financial-asset productivity. (similarity 0.83)
• Financialization ultimately represents markets displacing social institutions as society’s organizing principle. (similarity 0.83)
• Financialization channels income toward the wealthy and depresses productive investment and wages. (similarity 0.82)
• Financialization is integral to capitalism, not a product of deregulatory excess (similarity 0.82)
• Financialization scholarship spans three approaches with distinct analytic foci. (similarity 0.82)
• Scholars asserted financialization’s existence without providing direct evidence (similarity 0.82)
• Financialization both derives profits from finance and drains capital from productive investment (similarity 0.82)
• Financialized valuation imposes short-termism and disconnects decisions from material production. (similarity 0.81)
• Financialization lacks rigorous empirical evidence defining its timing and magnitude (similarity 0.81)

Broader Connections

• Financialization is a pattern of accumulation dominated by financial channels over trade and production #corroborates (1.00) — Greta R. Krippner, The Financialization of the American…, 42
• Financialization both derives profits from finance and drains capital from productive investment #expands (0.85) — Natascha van der Zwan, Making Sense of Financialization, 29
• The financialization literature lacks a unified definition across four competing usages #qualifies (0.75) — Greta R. Krippner, The Financialization of the American…, 41