Much of what liberals blame on financialization is a result of profound changes to both the United States and the global economy that date from as early as 1968—well before the onset of financialization. In fact, the growth of the finance sector was partly a product of these developments. It is true that the speculative disruptions caused by financialization have to be addressed if we don’t want to suffer another crash down the road. But, if policymakers truly want to arrest America’s decline in the world and attend to the various ills that have accompanied it, then they must come to terms with the much broader story of what has happened to American industry and global capitalism in the last four decades. Simply cracking down on Wall Street won’t be enough.
Source: The New Republic
Published: Jul 13, 2011
Length: 14 minutes (3,633 words)