Over $5.8 trillion dollar transferred to the finance sector since the 1980s.

Evidence

Reflecting this overarching trend, Tomaskovic-Devey & Lin (2011) found that since the 1980s the American economy experienced a transfer of between 5.8 and 6.6 trillion 2011 dollars in income to the finance sector, mostly as profits, and that this increased rent in the finance industry was concentrated primarily in white male workers with managerial and professional roles. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 76

Categorization

• XREF: Relates to the ‘finance as rent extraction’ literature and Stiglitz on the 1%.
• QUESTION: Worth checking the Tomaskovic-Devey & Lin methodology — how is the rent transfer estimated and does it double-count asset appreciation?

Related

• Financialization must be measured by profit generation, not employment or output (similarity 0.80)
• Nonfinance-firm financialization has received little research attention. (similarity 0.79)
• The US economy became increasingly financialized in the post-1970s period. (similarity 0.79)
• Financialization comprises both finance-sector dominance and nonfinance firms’ financial investing. (similarity 0.78)