How did we get this finance industry?

As a share of American GDP, the finance industry has doubled in size in the past 40 years, to over 30% of American Corporate profits.  Many argue that this presents a real problem for the long-term stability of the U.S. economy.  I argue that it presents real concerns for both social justice and the health of our democracy.  But how did we get here?

Mike Konczal and Brad Delong weigh in on this question, in response to this article by Tyler Cowen.

For a pop-cultural record of the impact of the growth of the financial sector, see Selling New York on HGTV.  I watched an episode yesterday because I both love New York and am thinking of buying a house (not in NYC).  Truth be told, however, the show (“can she sell the $18 million penthouse in time?”) made me a bit sick to my stomach.

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One Response to How did we get this finance industry?

  1. Josh says:

    Frank Sabotka’s almost dying words seem appropriate here – “we used to make shit in this country; build shit – now we just put our hands in the next guy’s pocket.”

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