FINANCIALIZATION
OF THE ECONOMY
“Inequality saps the economy by draining the buying power of
Americans whose incomes have stagnated, forcing them to rely on
debt to fund education, housing, and health care. At the top, it creates
deep pools of wealth that have nowhere productive to go, adding to
asset bubbles in capital markets bearing little or no relation to the
wealth of the over-all economy. (Critics call this the ‘financialization’ of the
Americans whose incomes have stagnated, forcing them to rely on
debt to fund education, housing, and health care. At the top, it creates
deep pools of wealth that have nowhere productive to go, adding to
asset bubbles in capital markets bearing little or no relation to the
wealth of the over-all economy. (Critics call this the ‘financialization’ of the
economy.) These fallouts from inequality were among the causes of the Great
Recession.”
Packer, George, “The Republican Class War,” pp: 26-34 (32), The
New Yorker, November 9, 2015.
