I’d also like to see more work done on the transfer of incomes to different fractions of capital.

In an old post at Rortybomb, Mike quotes Arjun Jayadev:

I’d also like to see more work done on the transfer of incomes to different fractions of capital. My belief is that there is an untold and complex story of financialization and transfers of income from labor to finance and not to industrial capital.

Maybe not complex, and certainly not untold, but sure a story that wants telling.


When a business sees its financial investments outperform its productive investments, smart business decisions move more money toward the greater return.

You would do the same or your business would not survive. But it's not good for output. It's not good for employment. What stands in the best interest of any one firm does not stand in the best interest of all. This is a "fallacy of composition" problem.

The solution requires a policy hard on finance.

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