On The Financialization Of The U.S.Economy Since World War Ⅱ

In the 1960 s, Western Europe and Japan’s post-war economic recovery, the manufacturing industry gradually over the United States, the United States has gradually lost its advantage in the manufacturing sector. At the same time, with the development of economy, the demand for financial services in the United States is expanding, and the financial innovation is increasing. By the 70 s of the 20 th century,American economy appeared serious stagflation, to ease the economic hardship of the situation at that time, the Reagan administration took the philosophy of governance of the neo-liberalism, relaxed controls on the financial industry, the financial industry developed rapidly. With the development of finance, the concept of "financialization" has been put forward and concerned by many scholars.In 2007, the subprime mortgage crisis broke out in the United States and quickly turned into a global economic crisis. Many experts and scholars have made an analysis of the root causes of the economic crisis and have referred to the“financialization". In view of this, this paper analyzes the development of financialization of the American economy since World War Ⅱ.The first chapter defines the concept related to financialization, such as financial liberalization, economic globalization, financial globalization and financialization to clarify the differences and links between different concepts. In the literature review,first of all, the financial development theory is reviewed; secondly, the understanding of the various scholars on the financialization and its impact are described in this paper. At last, introduces the research methods, innovations and deficiencies of this paper.The second chapter parses the concept of financialization respectively from the perspective of development economics and Marxist political economics.Finally, the author tries to explains financialization based on the existing academic definition of financialization combined with her own understanding,: financialization includes not only the prosperity and development of the financial institutions and the expansion of business scale, financial market and position in the economic activities,it also includesnon-financial sector get more and more profit from the financial industry.Chapter three describes the performance of the financialization of the U.S.Economy.In this chapter, the chart has been used to describe it from three aspects:the debt scale, financial contribution to economic growth and its position in the income distribution.The fourth chapter mainly analyzes the causes of the financialization. The author believes that causes respectively is: in the 1960 s, relative to Western Europe and Japan, the United States manufacturing industry gradually lost its advantage; during the same period, in order to meet the growing demand for finance, financial institutions have financial innovation in order to circumvent financial regulation; in the eighties of the 20 th century, the United States relax financial regulation and financial liberalization reform; collapse of Bretton Woods weakened the restriction of dollars.The fifth chapter analyzes the essence of financialization of U.S.Economy from three angles. From the perspective of the real economy, financialization of the economy is fictitious economy continues to expand and beyond the real economy,from a theoretical point of view, the financialization of United States economy is the performance of neo-liberalism; finally, from a strategic point of view, the financial economy is an important way to American hegemony strategy.The sixth chapter analyzes the financialization’s impact of the U.S. Economy This impact not only exsits in the United States, but also the world. And it includes both the favorable and unfavorable aspects.At the end of the paper, it gives the conclusion and Enlightenment of the financialization of the America economy. This paper argues that the trend of the economy of the United States is the result of economic development highly, and it is also a gradual process. In the initial phase, its influence on the development of American economy is positive, however, with the finance in economic activities playing an increasingly important role, the extent of financialization of the America economy has deepen, the negative impact of the financial continues to emerge.Therefore, it is very important to deal with the relationship between finance andeconomic development. For finance,it should be developed, but should not excessively. At the same time, the development of finance aims at serving the development of the economy, and therefore can not be separated from the real economy.China has experienced nearly 40 years of reform and opening up, economic development achievements attracted worldwide attention, the financial industry quickly grows up in the process of reform and opening up, and boosts China’s economic development. Although, there is still a big gap compared to the United States’, the warning significance brought about by the highly financialization of America and the subprime mortgage crisis is worth causing attach great importance to the problems of financial development for China.