The US financial industry grew fastest, while other advanced economies plateaued.
Evidence
The United States clearly stands out as the most financialized economy. A recent cross-national comparison of financial industry growth reveals that the US economy exhibited the steepest increase for the past 30 years in terms of the share of financial industry and the wage of financial sector workers. This trend is not universally common in other advanced economies, where the financial industry’s share either reached a plateau or even experienced slight decline (Philippon & Reshef 2013). Yet financialization has happened to a greater or lesser degree in countries around the world. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 117
Categorization
- QUESTION: What explains why the US uniquely steepened while comparable economies plateaued? Worth chasing the Philippon & Reshef data on.
- XREF: connects to: The US economy became increasingly financialized in the post-1970s period. — Greta R. Krippner, The Financialization of the American…, 5; Stagnating growth plus deregulation pushed firms from production into financial investment — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 41; Financialization accelerated through 1970s-80s deregulation and state support — Andrew deWaard, Derivative Media: How Wall Street…, 488 (+2 more)
Related
- The US economy became increasingly financialized in the post-1970s period. (similarity 0.84)
- Legislative deregulation drove the US financial sector’s postwar expansion (similarity 0.80)
- Financialization comprises both finance-sector dominance and nonfinance firms’ financial investing. (similarity 0.80)
- Industry-level financialization trajectories vary far more than macroeconomic accounts showed (similarity 0.80)
- US financial sector GDP share growth doubled after capital controls were lifted (similarity 0.79)
- US financialization accelerated sharply after 1980 deregulation (similarity 0.79)
- Finance has come to dominate American economic life. (similarity 0.79)
- Financialization trajectories diverged across industries after 1997 (similarity 0.79)
- Stagnating growth plus deregulation pushed firms from production into financial investment (similarity 0.78)
- Financial-market expansion after 1982 spread Americanized business practice worldwide. (similarity 0.78)
- Financialization accelerated through 1970s-80s deregulation and state support (similarity 0.78)
- Scholars asserted financialization’s existence without providing direct evidence (similarity 0.78)
Broader Connections
- The US economy became increasingly financialized in the post-1970s period.
#corroborates(0.82) — Greta R. Krippner, The Financialization of the American…, 5 - Financialization accelerated through 1970s-80s deregulation and state support
#expands(0.75) — Andrew deWaard, Derivative Media, 488 - Stagnating growth plus deregulation pushed firms from production into financial investment
#qualifies(0.72) — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 41 - Finance has come to dominate American economic life.
#corroborates(0.72) — Greta R. Krippner, The Financialization of the American…, 7 - US financialization emerged from state responses to 1970s governance crises.
#expands(0.70) — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 32