Measuring finance’s rise by profits misleads if grouped under services.

Evidence

But when profit data are adopted as the privileged lens on the economy, the rise of finance becomes so central to characterizations of economic change that merely subsuming finance under a broader category of service industries and occupations is,in fact,misleading. — Greta R. Krippner, The Financialization of the American…, 21

Categorization

• DEFINE: Introduces the core methodological move of the paper: profit data as the ‘privileged lens’ vs. activity-centred measures.
• XREF: connects to: Finance produced 40 percent of US corporate profits despite being only an information system — Mark Blyth, Austerity: The History of a Dangerous…, 624; Depreciation allowances bias both profit and cash-flow measures of financialization in opposite directions. — Greta R. Krippner, The Financialization of the American…, 71; Measuring profits rather than employment reveals financialization as the dominant economic trend — Greta R. Krippner, The Financialization of the American…, 37 (+3 more)

Related

• Measuring profits rather than employment reveals financialization as the dominant economic trend (similarity 0.92)
• Financialization must be measured by profit generation, not employment or output (similarity 0.89)
• An accumulation-centred view measures economic change by profit location. (similarity 0.88)
• Opposing measurement biases strengthen confidence in the financialization trend (similarity 0.84)
• Depreciation allowances bias both profit and cash-flow measures of financialization in opposite directions. (similarity 0.83)
• The US economy became increasingly financialized in the post-1970s period. (similarity 0.82)
• Financialization is measured as the ratio of financial receipts to business receipts. (similarity 0.81)
• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.81)
• Finance produced 40 percent of US corporate profits despite being only an information system (similarity 0.81)
• Greta R. Krippner — The Financialization of the American Economy (similarity 0.81)
• Financial profits relative to non-financial profits rose three to fivefold by the late 1990s. (similarity 0.80)
• Financialization both derives profits from finance and drains capital from productive investment (similarity 0.80)
• Financialization comprises both finance-sector dominance and nonfinance firms’ financial investing. (similarity 0.80)
• Financialization does not measurably raise firm profits or financial-asset productivity. (similarity 0.80)
• Financialization can be measured by comparing non-financial firms’ portfolio income to their cash flow. (similarity 0.79)

Broader Connections

• Depreciation allowances bias both profit and cash-flow measures of financialization in opposite directions. #complicates (0.85) — Greta R. Krippner, The Financialization of the American…, 71
• Measuring profits rather than employment reveals financialization as the dominant economic trend #qualifies (0.82) — Greta R. Krippner, The Financialization of the American…, 37
• An accumulation-centred view measures economic change by profit location. #expands (0.80) — Greta R. Krippner, The Financialization of the American…, 23
• Opposing measurement biases strengthen confidence in the financialization trend #qualifies (0.78) — Greta R. Krippner, The Financialization of the American…, 85