Categories
Economics Financial Crisis

The Proper Proportion of the Finance Sector to the Real Economy

Paul Krugman:

In recent years the finance sector accounted for 8 percent of America’s G.D.P., up from less than 5 percent a generation earlier.

This data point taken in isolation seems to suggest an idea I’ve been toying with for a few months now – perhaps there is a correct proportion of the financial sector to the real economy. This might not be original – and it seems related to the initial explanation of the Great Depression as a misdistribution of purchasing power due to income inequality. But I think the distinction is important – as my knowledge of history suggests that increasing inequality and a booming financial sector often precede serious economic crises.

1,468 replies on “The Proper Proportion of the Finance Sector to the Real Economy”

visit website here

Get in contract here for professional metal building erectors that are available for construction projects and ready to go at great prices. Ask for a bid today!

builder

Contact us now for professional metal building erectors that’s available for construction projects and ready to do your job with top quality. Ask for a bid today!

weblink

Get a great design for quality corporate relocation companies that are available and now in stock and on sale for today only!

Contractor

Contract us here for licensed and bonded steel building erectors that’s available for construction projects and ready to do your job with top quality. Ask for a bid today!

Comments are closed.

%d bloggers like this: