PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I'm Paul Jay in Baltimore. What happens to an economy and a society when the finance sector becomes increasingly dominant? Some people call much of the finance sector parasitical. And if that's the case, then what happens when parasitical capital becomes so dominant? Here's a graph that gives some sense of just how important a question this is. You'll see in this graph that starting around 1860, 1680, the GDP share of the U.S. financial industry starts to grow. It more or less goes up steadily until around the crash of '28, '29, '30, in that area, where it reaches something like about 6 percent of GDP. It goes down steadily and reaches a dip at around just after 1940 and during the war, and then starts to climb again continuously. Sometime around 1980 it gets back to that 6 percent peak, but it keeps going. By early 2000s, based on this graph, it hits over 8 percent. And then we have the crash in 2008. Now joining us to
Raymond Clough dnomyar34@raymondclough.com
- Financialization and the World Economy. Jerry Epstein: Financialization of the economy has been developing since the late 19th century and is now at historic Levels. |
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