Abstract: Origins of the Rise of Finance in the United States

Youn Ki

Abstract

This study examines the origins of the rise of American finance over the past half-century. I argue that large US industrial corporations unintentionally facilitated financial expansion while trying to restore industrial profits by adopting new business strategies in the 1970s. The success of these strategies required industrialists to cooperate with financiers in supporting liberal economic policies, which created economic conditions conducive to financial growth. As such, my research stresses distinctive sectoral goals, but shared means, among capitalists led to financialization. Extensive archival evidence suggests that industrialists, along with financiers, successfully pressured the US government to weaken the regulation of both international and domestic finance in the 1970s, thereby facilitating financial expansion in the US.