US financialization emerged from state responses to 1970s governance crises.

Evidence

Last, political sociologists place more emphasis on the role of state and explain the rise of finance as an unintended consequence of political responses to the administrative crisis in the 1970s. At the end of postwar prosperity, the US government faced three types of crises, all of which resulted from a mismatch between increasing demands by diverse social groups and shrinking economic resources under government control: increasing tension and conflict between social groups (social crisis), the structural gap between government spending and revenue (fiscal crisis), and declining confidence in government (legitimacy crisis). Krippner (2011) explains that the US government overcame these crises essentially by delegating difficult decisions on prioritizing diverse social Changes may still occur before final publication online and in print Annu. — Gerald F. Davis & Suntae Kim, Financialization of the Economy, 32

Categorization

• XREF: Matches Krippner’s fiscal-sociology thesis that financialization was not deliberate policy but an unintended by-product of state crisis management. — connects to: Public officials adopt financialization not from ideology but from state incapacities — Ève Chiapello, Financialisation of Valuation, 105; 1970s crises moved business elites to prioritize capital liquidity over employment stability — Ken-Hou Lin & Donald Tomaskovic-Devey, Financialization and U.S. Income…, 39; The US economy became increasingly financialized in the post-1970s period. — Greta R. Krippner, The Financialization of the American…, 5 (+7 more)
• DEFINE: Usefully enumerates the three 1970s US state crises (social, fiscal, legitimacy) in one compact taxonomy.

Related

• The US economy became increasingly financialized in the post-1970s period. (similarity 0.87)
• 1970s crises moved business elites to prioritize capital liquidity over employment stability (similarity 0.85)
• Post-1970s fiscal crisis forced states to choose between workers and capital. (similarity 0.81)
• Financialization accelerated through 1970s-80s deregulation and state support (similarity 0.79)
• Scholars asserted financialization’s existence without providing direct evidence (similarity 0.79)
• A post-1971 force shifted capitalist power from industry to finance. (similarity 0.79)
• Legislative deregulation drove the US financial sector’s postwar expansion (similarity 0.78)
• Public officials adopt financialization not from ideology but from state incapacities (similarity 0.78)
• Financial markets reshaped households, corporations, and states over the past 30 years. (similarity 0.78)

Broader Connections

• The US economy became increasingly financialized in the post-1970s period. #expands (0.90) — Greta R. Krippner, The Financialization of the American…, 5
• Financialization accelerated through 1970s-80s deregulation and state support #corroborates (0.85) — Andrew deWaard, Derivative Media, 488
• The 1973 crisis began a new capitalism immune to state steering and proletarian challenge #expands (0.80) — Martin Jay, The Dialectical Imagination, 18