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The Profits of Financialization

Bibliographic Data

ID9202118
AuthorsCostas Lapavitsas (0000-0001-9330-7105), Ivan Mendieta-Muñoz, Ivan Mendieta‐Muñoz (0000-0003-0018-5642)
Year2016
Volume68
Issue3
Pages49
Publication date2016-07-04
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueMonthly Review (JOURNAL)
Journal identifiersISSN: 0027-0520 • E-ISSN: 0027-0520
PublisherMonthly Review Foundation (PUBLISHER)
DOI10.14452/mr-068-03-2016-07_4
OpenAlexW2469323830
LanguageEN
Citations received14

The financialization of capitalism has been marked by the sustained rise of financial profits. In the United States, financial profits as a proportion of total profits rose enormously from the early 1980s to the early 2000s, collapsed during 2007–09, and subsequently recovered, but without reaching previous heights. During this period, the trend of the average rate of profit has been largely flat. The relative rise of financial profits in spite of stagnant average profitability represents a theoretical and empirical conundrum. We will argue that the answer should be sought partly in financial expropriation, but also in public interest rates kept at extraordinarily low levels. In this light, the rise of financial profits represents a vast public subsidy to the financial system characteristic of financialization.Click here to purchase a PDF version of this article at the Monthly Review website

Capitalism · Economics · Expropriation · Financialization · Market economy · Monetary economics · Neoclassical economics · Political science · Politics · Profit (economics) · Profit rate · Profitability index · Rate of profit · Subsidy · Finance · Housing, Finance, and Neoliberalism

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Unique citing works14
Citations per year2
Citation span2019 - 2024 (6)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 14

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