A new 51-page report by the Roosevelt Institute shows that between 1990 - 2023 (projected) the finance sector will have been a net cost to the American economy of $12.9 trillion – $22.7 trillion. This astronomical amount, composed of:
(1) rents, or excess profits;
(2) misallocation costs, or the price of diverting resources away from non-financial activities; and
(3) crisis costs, meaning the cost of the 2008 financial crisis means that the average family has half the retirement savings it would have had otherwise. It means while financial services profits have skyrocketed, ordinary wages have stagnated.
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Scott Baker is a Managing Editor & The Economics Editor at Opednews, and a blogger for Huffington Post, Daily Kos, and Global Economic Intersection.
His anthology of updated Opednews articles "America is Not Broke" was published by Tayen Lane Publishing (March, 2015) and may be found here:
Scott is a former President of Common Ground-NYC (http://commongroundnyc.org/), a Geoist/Georgist activist group. He has written dozens of articles for (more...)
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