Sales Manager Essays

1316 Words Feb 26th, 2016 6 Pages
Antonio Allen
BA-316-BL
3/30/2015
Financial Issue Paper

Could our economy possibly be suffering because the industry is not looking at the bigger picture and instead looks at short term goals? That is the belief of some as Rana Foroohar states in her article for Time, “…because finance looks for quick growth rather than long-term rewards” (Foroohar). Her response is to that of a paper written by Stephen G. Cecchetti, a professor at Brandeis International Business School and a senior economist from BIS, Enisse Kharroubi asking why the financial sector growth out crowds the real economic growth. From another perspective comes the view that financialization has brought a systematic transformation to the capitalist economy. A four part
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Thomas I. Palley examines just how important financialization is to the economy in his work Financialization: the economics of finance capital domination. Palley states that “financialization transforms the functioning of the economic system at both the macro and micro levels.” (Palley). He looks at how there has been a transition helping build the financial sector up and restore it stating that financialization provided “some of the mechanisms for distributing income from labor to capital by changing the behavior of non-financial and by influencing economic policy in ways supportive of financial and non-financial business interests” (Palley). There is the aspect that the way the industry is handling the finance sector is a good thing for the economy. This comes with heavy backlash as of late though with the crisis happening in 2009 and seeing the tactics used by the industry as a huge cause of it. Koroobar quotes Cecchetti saying “when I was at MIT many years ago, everyone wanted to work in cold fusion or recombinant DNA. By the 1990s, nobody wanted to do that.” Solution? “I think we should take some proportion of the smartest people in the room and make sure they don’t go into finance” (Koroobar). This shows just how much power the industry is having over those who might have planned entering into these productive industries by stealing them away all with the wave of a

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