The rise of financialization has led to lower living standards and reduced growth in the U.S.

The last 30 years has seen a massive rise in the importance of financial instruments in the American economy. But what has been the impact of this shift in corporate investment strategy? In new research, Donald Tomaskovic-Devey writes that the concentration of wealth and power in the financial service industry has led to lower living standards and weaker state investment in citizens and infrastructure. He argues that tax and fiscal policies should promote investment in production and employment over financial strategies by non-finance firms.