GE’s finance arm outgrew its industrial parent and dominates its profits
Evidence
The most aggressive and successful border crossing was pioneered by General Electric. Founded in 1943, GE Capital was designed to provide loans for the customers of home appliances. However, under the post-1980 leadership of Jack Welch, its scope rapidly expanded to small business loans, real estate, mortgage lending, credit cards, and insurance. After running a close second for decades, it topped GMAC as the largest nonbank lender in 1992. In recent years, the financial unit consistently brought in more than half of the profits for GE ðKocieniewski 2011Þ. — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 44
Categorization
- XREF: Mirrors the broader shift of nonfinancial corporate profits toward financial activities documented in Krippner’s ‘Capitalizing on Crisis’ and by Orhangazi. — connects to: Industrial corporations transformed into financial hedge funds before their collapse — Yanis Varoufakis, Technofeudalism: What Killed Capitalism, 901; Financialization shifted corporate power from manufacturing and marketing executives toward financial executives. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 21; Financialization coincided with dramatic employment cuts at GE — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 181
Related
- Financialization coincided with dramatic employment cuts at GE (similarity 0.83)
- Industrial corporations transformed into financial hedge funds before their collapse (similarity 0.81)
- Financialization shifted corporate power from manufacturing and marketing executives toward financial executives. (similarity 0.80)
- Financialization theory rejects bank dominance in favor of integrated finance-industrial capital (similarity 0.80)
Broader Connections
- Industrial corporations transformed into financial hedge funds before their collapse
#exemplifies(0.85) — Yanis Varoufakis, Technofeudalism, 901 - Financialization shifted corporate power from manufacturing and marketing executives toward financial executives.
#exemplifies(0.80) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 21