Production vs Financialization

Financialization is a way to make money from money rather than from goods and services. Financialization emphasizes short-term profits and cost reduction rather than long-term investment.​

Video / Audio: Production vs Financialization

Check out this collection of videos and podcast episodes focused on our right to employment and basic human needs.

Booms & Busts are Avoidable: Make Banking Boring Again with Randall Wray

Our finance system is rigged in favor of the rich and powerful, Professor Randall Wray explains. Private markets have historically put profits over people, and it is the responsibility of the state to protect the working class from the greed of a shortsighted and selfish few.

Macro n Cheese Podcast Ep. 48 - Reclaiming The Brexit with Bill Mitchell

In order to understand the recent UK elections and the significant role played by Brexit, it’s necessary to look back at the post-World War 2 era of nation-building and economic growth, the gains that were made by working people, and the point at which capital had had enough.

Macro n Cheese Podcast Ep. 74 - Counterpoint: MMT’s Evaluation of AMI's Positive Money with L. Randall Wray

Corporations spend more on stock buybacks than on investment in plants and equipment, which would create jobs. The buybacks raise the value of the shares, then the CEOs exercise their stock options for huge amounts of money. There’s no reason to allow it.

Written Materials: Production vs Financialization

Check out these related articles from our local community and beyond.

Academic Publications: Production vs Financialization

A collection of peer-reviewed white papers and working papers from our friends in the MMT academic community.

Financialization: What It Is and Why It Matters

Financialization is a process whereby financial markets, financial institutions, and financial elites gain greater influence over economic policy and economic outcomes. Financialization transforms the functioning of economic systems at both the macro and micro levels.

Trade and Payments Theory in a Financialized Economy

Ricardian trade theory was based on the cost of labor at a time when grain and other consumer goods accounted for most subsistence spending. But today’s budgets are dominated by payments to the finance, insurance, and real estate (FIRE) sector and to newly privatized monopolies. This has made FIRE the determining factor in trade competitiveness.

S.2391 - Stock Buyback Reform and Worker Dividend Act of 2019

This bill changes the rules for companies making stock buybacks, adding worker benefits, transparency and restrictions.

S.915 - Reward Work Act

This bill prohibits issuers from purchasing their own securities on a national exchange. The bill also requires one-third of an issuer's board of directors to be elected by employees in order for the issuer to be allowed to register securities.

Policy Resources: Production vs Financialization

Links to progressive bills and proposals currently making their way through the United States Congress

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