Finance Capitalism: Profits Without Production Increases Inequality

How do we live with the contradictory message that the stock market is doing well, but around us we see roads not being built, cities becoming gentrified and Americans working two and three jobs to stay even?

The answer is that the profits made on financialization do not produce real goods and services as they once did. The problem is that most of the American public has a picture of capitalism – profit made on production of goods and service – that is 50 years out of date with how capitalism works now. The image below shows the extent to which finance pays no attention to the provisioning expectations most people have from an economy.

Image from SlideServe

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