Financialization and Inequality

An answer to a question on whether financialization is responsible for the increase in economic inequality in the US. It is tempting to see the increasing role of big banks, other financial institutions, and the general rising role of financial activity as responsible for many evils, including rising economic inequality. In one sense, this view is accurate. Financialization has certainly had some detrimental impacts. Yet, it is more accurate to see financialization as part of a complex of interconnected developments in the US and the world economies--developments that together have generated rising inequality.