The US economy became increasingly financialized in the post-1970s period.

Evidence

This paper presents systematic empirical evidence for the financialization of the US economy in the post-1970s period. While numerous researchers have noted the increasing salience of finance, there have been few systematic attempts to consider what this shift means for the nature of the economy, considered broadly. In large part, this omission reflects the considerable methodological difficulties associated with using national economic data to assess the rise of finance as a macro-level phenomenon shaping patterns of accumulation in the US economy. The paper develops two discrete measures of financialization and applies these measures to postwar US economic data in order to determine if, and to what extent, the US economy is becoming financialized. — Greta R. Krippner, The Financialization of the American…, 5

Categorization

• DEFINE: Defines financialization as a macro-level shift in patterns of accumulation, the field-defining framing.
• XREF: Connects to the reader’s readings on finance and economic change; foundational grounding for the financialization literature the reader is building. — connects to: Financial markets reshaped households, corporations, and states over the past 30 years. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 10; US financialization emerged from state responses to 1970s governance crises. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 32; Financial-market expansion after 1982 spread Americanized business practice worldwide. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 114 (+16 more)

Related

• Financialization marks a decisive shift from production-based to finance-driven accumulation. (similarity 0.89)
• Finance has come to dominate American economic life. (similarity 0.89)
• Financialization must be measured by profit generation, not employment or output (similarity 0.89)
• Scholars asserted financialization’s existence without providing direct evidence (similarity 0.88)
• Measuring profits rather than employment reveals financialization as the dominant economic trend (similarity 0.87)
• US financialization emerged from state responses to 1970s governance crises. (similarity 0.87)
• Financial markets reshaped households, corporations, and states over the past 30 years. (similarity 0.87)
• Financialization is a pattern of accumulation dominated by financial channels over trade and production (similarity 0.87)
• Financialization lacks rigorous empirical evidence defining its timing and magnitude (similarity 0.86)
• Financialization comprises both finance-sector dominance and nonfinance firms’ financial investing. (similarity 0.85)
• The US financial industry grew fastest, while other advanced economies plateaued. (similarity 0.84)
• Financial-market expansion after 1982 spread Americanized business practice worldwide. (similarity 0.84)
• The financialization literature lacks a unified definition across four competing usages (similarity 0.84)
• Financialization accelerated through 1970s-80s deregulation and state support (similarity 0.83)
• Financialization means accumulation through financial channels rather than production (similarity 0.83)

Broader Connections

• Finance has come to dominate American economic life. #corroborates (0.95) — Greta R. Krippner, The Financialization of the American…, 7
• Financialization accelerated through 1970s-80s deregulation and state support #expands (0.90) — Andrew deWaard, Derivative Media, 488
• Measuring profits rather than employment reveals financialization as the dominant economic trend #corroborates (0.80) — Greta R. Krippner, The Financialization of the American…, 37
• Financialization shifts capital intermediation from institutions to markets. #expands (0.80) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 5
• Financialization fragments corporate, state, and individual horizons into short-termism #expands (0.75) — Max Haiven, Cultures of Financialization, 138
• Financialization reshapes cultural industries through macroeconomic shifts. #expands (0.75) — Andrew deWaard, Derivative Media, 58