Source: American Institute for Economic Research
by David Bahnsen
“Despite its ubiquitous use in modern America, the term ‘financialization’ is deeply misunderstood. Evidence shows the concept’s meaning often changes in different contexts. In some instances it serves as a relatively benign catch-all term for anything construed as a ‘greater role for the financial sector in the economy.’ Others have described financialization as a ‘mismatch between the public interest and Wall Street interest.’ In some instances, it is misunderstood as the simple pursuit of profit. As the term ‘financialization’ has gotten more mileage in recent years, critics have seized on the ambiguity of the word to wage class warfare and attack capital markets, which are little understood.” (11/25/24)