Financialism: A (Very) Brief History
Lawrence E. Mitchell
Case Western Reserve University - School of Law
August 9, 2010
Creighton Law Review, Vol. 43, p. 323, 2010
THE EMBEDDED FIRM, Peer Zumbansen and Cynthia Williams, eds., Cambridge University Press, Forthcoming
GWU Legal Studies Research Paper
This essay describes various financial, economic, and legal developments in the United States from 1952 until 2007 and argues that they suggest a transformation of the American economic system from capitalism to one I term "financialism." Financialism is a system in which the real economy plays a secondary role to the financial economy, in the process stripping future real economic profits for present consumption. While it bears similarities to the process often identified in the economic literature as "financialization," it differs both in historical scope and in its suggestion that financialism differs fundamentally from capitalism.
Number of Pages in PDF File: 15
Keywords: Financial Crisis, Capitalism, Securities, Finance, Investment Banking, Commercial Banking, Banking, Executive Compensation, Shareholders, Stock, Stock Market, Proprietary TradingAccepted Paper Series
Date posted: August 9, 2010
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