Income Dynamics, Economic Rents, and the Financialization of the U.S. Economy—Tomaskovic-Devey 2011

The 2008 collapse of the world financial system was a result of the financialization of the U.S. economy since the 1970s. This article examines the institutional and income dynamics of the financialization of the U.S. economy, offering a sociological explanation for income shifts into finance. Banking deregulation, finance industry concentration, increased institutional investors, the shareholder value movement, and the neoliberal policy model are complementary trends. Since 1980, 5.8 to 6.6 trillion dollars have been transferred to the finance sector. Market institutions and politics are key to understanding inequality dynamics.

Lin, K., & Tomaskovic-Devey, D. (2011). Financialization and US Income Inequality, 1970-2008. S&P Global Market Intelligence Research Paper Series.