{"id":2565,"date":"2021-04-28T18:39:58","date_gmt":"2021-04-28T22:39:58","guid":{"rendered":"https:\/\/americancompass.beckandstone.com\/has-the-financial-sector-become-a-drag-on-the-real-economy\/"},"modified":"2022-11-09T22:39:12","modified_gmt":"2022-11-10T03:39:12","slug":"has-the-financial-sector-become-a-drag-on-the-real-economy","status":"publish","type":"post","link":"https:\/\/americancompass.org\/has-the-financial-sector-become-a-drag-on-the-real-economy\/","title":{"rendered":"Has the Financial Sector Become a Drag on the Real Economy?"},"content":{"rendered":"\n<p>An effective financial sector is vital to a well-functioning market economy, but in America the sector has metastasized. Its <a class=\"editor__link\" title=\"https:\/\/apps.bea.gov\/iTable\/index_nipa.cfm\" href=\"https:\/\/apps.bea.gov\/iTable\/index_nipa.cfm\" target=\"_blank\" rel=\"noopener\"><span data-offset-key=\"cki25-1-0\">share of corporate value added<\/span><\/a><span data-offset-key=\"cki25-2-0\"> has risen from 4% after WWII to 6% in the 1960s to 9% in the 1980s to a record 14% last year. Its <\/span><a class=\"editor__link\" title=\"https:\/\/apps.bea.gov\/iTable\/index_nipa.cfm\" href=\"https:\/\/apps.bea.gov\/iTable\/index_nipa.cfm\" target=\"_blank\" rel=\"noopener\"><span data-offset-key=\"cki25-3-0\">share of corporate profits<\/span><\/a><span data-offset-key=\"cki25-4-0\">, once less than 10%, reached 40% in the early 2000s and has remained consistently above 25% since.<\/span><\/p>\n\n\n\n<p>Top business talent has followed. In 2020, 34% of graduates from <a class=\"editor__link\" title=\"https:\/\/www.hbs.edu\/recruiting\/data\/Pages\/detailed-charts.aspx?year=2020\" href=\"https:\/\/www.hbs.edu\/recruiting\/data\/Pages\/detailed-charts.aspx?year=2020\" target=\"_blank\" rel=\"noopener\"><span data-offset-key=\"a5rpo-1-0\">Harvard<\/span><\/a><span data-offset-key=\"a5rpo-2-0\">\u2019s MBA program entered finance, as did 34% from <\/span><a class=\"editor__link\" title=\"https:\/\/www.gsb.stanford.edu\/sites\/default\/files\/files-fpp\/23396\/report-2020-mba-employment-report.pdf\" href=\"https:\/\/www.gsb.stanford.edu\/sites\/default\/files\/files-fpp\/23396\/report-2020-mba-employment-report.pdf\" target=\"_blank\" rel=\"noopener\"><span data-offset-key=\"a5rpo-3-0\">Stanford<\/span><\/a>\u2019<span data-offset-key=\"a5rpo-4-0\">s. At both schools it was the most popular industry and offered the most generous compensation packages.<\/span><\/p>\n\n\n\n<p>In theory, Americans might just love themselves some great financial services. A finance-dominated economy might deliver extraordinary value to consumers and businesses, drive investment and innovation, and shift upward the nation\u2019s economic trajectory. In practice, this is obviously not the case.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>American Compass&#8217;s Oren Cass, in dialogue with Oaktree Capital&#8217;s Howard Marks, discusses the negative effects of the growth of the U.S. financial sector.<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_tec_requires_first_save":true,"_price":"","_stock":"","_tribe_ticket_header":"","_tribe_default_ticket_provider":"","_tribe_ticket_capacity":"0","_ticket_start_date":"","_ticket_end_date":"","_tribe_ticket_show_description":"","_tribe_ticket_show_not_going":false,"_tribe_ticket_use_global_stock":"","_tribe_ticket_global_stock_level":"","_global_stock_mode":"","_global_stock_cap":"","_tribe_rsvp_for_event":"","_tribe_ticket_going_count":"","_tribe_ticket_not_going_count":"","_tribe_tickets_list":"[]","_tribe_ticket_has_attendee_info_fields":false,"_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"_tribe_blocks_recurrence_rules":"","_tribe_blocks_recurrence_description":"","_tribe_blocks_recurrence_exclusions":"","footnotes":""},"categories":[7,206],"tags":[25],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Has the Financial Sector Become a Drag on the Real Economy? 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