Reforms Help Corporate Financial Sectors Eat Economy

We have been hearing that the improved health of financial and Corporate sector augurs well for the Economy.

And when you find Corporate and Financial Sectors posting higher profits, you would normally expect that the Living conditions would improve and the economy would fare better.

Whenever you find a problem in Economy, there is a chorus for better Reforms_meaning sops for the Corporate and financial institutions

Have the Corporate and Financial Sector been improving in terms of profits over the years?

Look at the Statistics.

Thirty years ago, the financial sector claimed around a tenth of U.S. corporate profits. Today, it’s almost 30 percent. As a result, it’s supplanted manufacturing as the biggest profit center in the economy, a transformation I’ve graphed out below. The red line is manufacturing. The blue line is the finance sector chowing down like Pac Man on corporate America’s bottom line.