4 ms·
GE is one of my go to examples of the financialization of American capitalism. Pretty much every company once it crosses a certain size starts looking more like
by ashtonkem 5y ago
GE is one of my go to examples of the financialization of American capitalism. Pretty much every company once it crosses a certain size starts looking more like a bank than the goods and/or services company that existed before hand. This is both bad as a country, we need goods and services not GE financial operations, and often quite bad for the company as everything else ends up getting deprioritized and/or sold off.
It’s also worth pointing out that this financial wing almost killed GE in 2008. Obviously consumer spending (e.g. washing machines) was going to drop during that time, but the financial wing of the company almost bankrupted them and ended up getting them removed from the Dow Jones Industrial Average.
- Dokaz 5y agoNot just every company. In GDP or GVA calculations any region on the planet that gets prosperous by building goods, food, mining, whatever, sees a jump in real estate activity that sooner or later grows as large or larger than the sector that produced the growth. After that people coast whether in a company or in a county or a district or a state. Until competion either pushes them out of their comfort zone or crushes them.