Since the finance sector of the economy (investing, lending, payment processing, etc) just enables other things we more directly care about, the more efficient it is the smaller share of economic activity it should be.
Ideally the financial sector should be a half or a quarter of its current share of GDP. It should slip into the background.
The financialization of everything is largely attributable to bad money and bad structural incentives.
Broken money hurts everything value touches
Is there any truth to USA tax receipts being so tied to the stock market that it can’t afford a recession?
Everything is so broken!
I think about this when I am in major metros and all of the largest building are used for Banks.
Finance/insurance looks to employ about 9 million people in the US, contributing under 10% to US GDP, about $2Tn. These stats are circa 2020s. Any idea what the ratio was pre-1971, or over time?
The UK out all its eggs in the finance sector. Sounds like a foolish move.
The finance sector is an arm of the state and therefore must expand to maintain power.
