GGRA02H3 Chapter Notes -Capacity Utilization, Financial Services, Capital Control
Document Summary
Mann- from the rise of finance to the subprime crisis: Long downturn describes a shift affecting difference places and sectors unequally. Manufacturing took a big, significant hit and it was the most important sector from an employment perspective. A rise in sweatshops in the global south resulted in the collapse of good manufacturing jobs in much of europe and north america. Services also included fire (finance, insurance and real estate services) which contains a whole host of activity. Financial services" (f in fire) contribution to overall economic activity has skyrocketed since the late 1970s, from almost nothing to 8 percent of the gdp in us. The increased role of finance in overall economic activity and the increased proportion of profits that are realized via financial channels are the two main empirical indicators of a process called financialization. In general financialization describes the increasing role of financial motives, financial markets, financial actors and financial institutions in domestic and international economies.
