Financialization of Life: A Review and Critic from Perspective of Individuals

Yıl 2023, Cilt: 3 Sayı: 2, 280 - 296, 30.12.2023

Hazar Altınbaş

https://doi.org/10.58620/fbujoss.1397006

Öz

Globalization, neo-liberalization, and financialization are three popular concepts used to understand and explain the political, social, and economic transformations that have taken place worldwide since the 1970s. While researchers and thinkers are sometimes criticized for their tendency to create new concepts (especially those ending with the "-ization" suffix), almost everyone agrees that this period is distinct from previous ones in terms of its unique dynamics. Among these three concepts, financialization, the youngest, has gained more attention after the 2007-2008 global financial crisis. In this study, the topic of financialization will be explored within the framework of how individuals are affected by and interact with the financial system.

Anahtar Kelimeler

Finance, inequality, poverty

Yaşamın Finansallaşması: Bireylerin Perspektifinden Bir İnceleme ve Eleştiri

Öz

Küreselleşme, neo-liberalleşme ve finansallaşma, 1970’li yıllardan itibaren dünyada meydana gelen siyasi, sosyal ve ekonomik dönüşümleri anlamak ve açıklamak için kullanılan üç popüler kavramdır. Araştırmacılar ve düşünürler zaman zaman yeni kavram türetme sevdasına (özellikle de “-leşme”, İngilizce karşılıklarında “-ization” ekiyle) düşmekle eleştiriliyor olsa da hemen herkes, söz konusu dönemin kendisine has dinamikleriyle önceki dönemlerden ayrıştığı konusunda hemfikirdir. Bu üç kavram arasında en genci olan finansallaşma, 2007-2008 küresel finans krizi sonrası daha fazla tartışılmaya başlanmıştır. Bu bölümde finansallaşma konusuna bireylerin finansal sistemden etkilenişi ve etkileşimi çerçevesinde bakılacaktır.

Anahtar Kelimeler

Finansallaşma, eşitsizlik, yoksulluk.

Kaynakça

• Adams, Zeno, Solène Collot, and Maria Kartsakli. 2020. Have commodities become a financial asset? Evidence from ten years of Financialization. Energy Economics 89: 104769.
• Altinbas, Hazar. 2020. Examining time-varying integrity and interrelationships among global stock markets. International Journal of Economic Sciences IX (1): 1–24. https://doi.org/10.20472/es.2020.9.1.001.
• Basak, S., and A. Pavlova. 2016. A model of financialization of commodities. The Journal of Finance 71 (4): 1511–56. https://doi.org/10.1111/jofi.12408.
• Bayliss, K. 2014. The financialization of water. Review of Radical Political Economics 46 (3): 292–307. https://doi.org/10.1177/0486613413506076.
• Beck, T., A. Demirgüç-Kunt, and R. Levine. 2007. Finance, inequality and the poor. Journal of Economic Growth 12 (1): 27–49. https://doi.org/10.1007/s10887-007-9010-6.
• Blanden, J., M. Doepke, and J. Stuhler. 2022. Educational inequality (Discussion Paper No: 15225). IZA – Institute of Labor Economics.
• Bolt, J., and J. L. van Zanden. 2020. Maddison style estimates of the evolution of the world economy. A new 2020 update.
• Bonneau, C., and S. Grobon. 2022. Unequal access to higher education based on parental income: Evidence from France (Working Paper No: 2022/01). World Inequality Lab.
• Boughton, J. M. 2001. Silent revolution. In Silent Revolution The International Monetary Fund 1979–1989, 1–64. International Monetary Fund.
• Bruno, V. G., B. Büyükşahin, and M. A. Robe. 2017. The financialization of food? American Journal of Agricultural Economics 99 (1): 243–64. https://doi.org/10.1093/ajae/aaw059.
• Bryan, D., R. Martin, and M. Rafferty. 2009. Financialization and Marx: Giving labor and capital a financial makeover. Review of Radical Political Economics 41 (4): 458–72. https://doi.org/10.1177/0486613409341368.
• Cai, Z., and J. Heathcote. 2022. College tuition and income inequality. American Economic Review 112 (1): 81–121. https://doi.org/10.1257/aer.20181027.
• Cecchetti, S. G., and E. Kharroubi. 2012. Reassessing the impact of finance on growth (Working Paper No: 381). BIS Working Papers. Bank of International Settlements.
• ———. 2018. Why does financial sector growth crowd out real economic growth? (Working Paper No: 490). BIS Working Papers. Bank of International Settlements.
• Cheng, I.-H., and W. Xiong. 2014. Financialization of commodity markets. Annual Review of Financial Economics 6 (1): 419–41. https://doi.org/10.1146/annurev-financial-110613-034432.
• Christophers, B. 2015. The limits to financialization. Dialogues in Human Geography 5 (2): 183–200. https://doi.org/10.1177/2043820615588153.
• Claessens, S., and E. Perotti. 2007. Finance and inequality: Channels and evidence. Journal of Comparative Economics 35 (4): 748–73. https://doi.org/10.1016/j.jce.2007.07.002.
• Clarke, G. R. G., L. C. Xu, and H. Zou. 2006. Finance and income inequality: What do the data tell us? Southern Economic Journal 72 (3): 578. https://doi.org/10.2307/20111834.
• Davis, G. F., and S. Kim. 2015. Financialization of the economy. Annual Review of Sociology 41: 203–21. https://doi.org/10.1146/annurev-soc-073014-112402.
• De Maio, F. G. 2007. Income inequality measures. Journal of Epidemiology & Community Health 61 (10): 849–52. https://doi.org/10.1136/jech.2006.052969.
• Dhrifi, A. 2015. Financial development and the “growth-inequality-poverty” triangle. Journal of the Knowledge Economy 6: 1163–76. https://doi.org/10.1007/s13132-014-0200-0.
• Dore, R. 2008. Financialization of the global economy. Industrial and Corporate Change 17 (6): 1097–1112. https://doi.org/10.1093/icc/dtn041.
• Dünhaupt, P. 2013. The effect of financialization on labor’s share of income (Working Paper No: 17/2013). Hochschule für Wirtschaft und Recht Berlin. Berlin: Institute for International Political Economy (IPE).
• Eaton, C., J. Habinek, A. Goldstein, C. Dioun, D. G. Santibáñez Godoy, and R. Osley-Thomas. 2016. The financialization of US higher education. Socio-Economic Review 14 (3): 507–35. https://doi.org/10.1093/ser/mwv030.
• Epstein, G. 2002. Financialization, rentier interests, and central bank policy. In Financialization of the World Economy.
• Falkowski, M. 2011. Financialization of commodities. Contemporary Economics 5 (4): 4–17. https://doi.org/10.5709/ce.1897-9254.24.
• Freeman, R. B. 2010. It’s financialization! International Labour Review 149 (2): 163–83. https://doi.org/10.1111/j.1564-913X.2010.00082.x.
• Gunnoe, A. 2014. The political economy of institutional landownership: Neorentier society and the financialization of land. Rural Sociology 79 (4): 478–504. https://doi.org/10.1111/ruso.12045.
• Haan, J. de, and J.-E. Sturm. 2016. Finance and income inequality: A review and new evidence (Working Paper No: 530). DNB Working Paper. De Nederlandsche Bank.
• Hansen, P. H. 2014. From finance capitalism to financialization: A cultural and narrative perspective on 150 years of financial history. Enterprise and Society 15 (4): 605–42. https://doi.org/10.1093/es/khu047.
• Harrison, A., and M. McMillan. 2007. On the links between globalization and poverty. The Journal of Economic Inequality 5 (1): 123–34. https://doi.org/10.1007/s10888-006-9041-9.
• Harvey, D. 2004. The “new” imperialism: Accumulation by dispossession. Socialist Register 40: 63–87. https://doi.org/10.4324/9781315251196-10.
• Hasell, Joe, Max Roser, Esteban Ortiz-Ospina, and Pablo Arriagada. 2022. Poverty. Our World in Data.
• Heil, M. 2018. How does finance influence labour market outcomes? A review of empirical studies (Working Paper No: 1495). Economics Department Working Papers. OECD.
• Hendel, I., J. Shapiro, and P. Willen. 2005. Educational opportunity and income inequality. Journal of Public Economics 89 (5–6): 841–70. https://doi.org/10.1016/j.jpubeco.2004.11.004.
• Hick, R., and M. Stephens. 2023. Housing, the welfare state and poverty: On the financialization of housing and the dependent variable problem. Housing, Theory and Society 40 (1): 78–95. https://doi.org/10.1080/14036096.2022.2095438.
• Housing prices (indicator). 2023. OECD.
• Ioannou, S., and D. Wójcik. 2019. On financialization and its future. Environment and Planning A: Economy and Space 51 (1): 263–71. https://doi.org/10.1177/0308518X18820912.
• Karwowski, E., and E. Stockhammer. 2017. Financialisation in emerging economies: A systematic overview and comparison with Anglo-Saxon economies. Economic and Political Studies 5 (1): 60–86. https://doi.org/10.1080/20954816.2016.1274520.
• Lagoarde-Segot, T. 2017. Financialization: Towards a new research agenda. International Review of Financial Analysis 51: 113–23. https://doi.org/10.1016/j.irfa.2016.03.007.
• Lapavitsas, C. 2011. Theorizing financialization. Work, Employment and Society 25 (4): 611–26. https://doi.org/10.1177/0950017011419708.
• ———. 2013. The financialization of capitalism: “Profiting without producing.” City 17 (6): 792–805. https://doi.org/10.1080/13604813.2013.853865.
• Lawrence, G. 2015. Defending financialization. Dialogues in Human Geography 5 (2): 201–5. https://doi.org/10.1177/2043820615588155.
• Leijten, I., and K. de Bel. 2020. Facing financialization in the housing sector: A human right to adequate housing for all. Netherlands Quarterly of Human Rights 38 (2): 94–114. https://doi.org/10.1177/0924051920923855.
• Levine, R. 2021. Finance, growth, and inequality. IMF Working Paper, no. WP/21/164.
• Lima, V. 2020. The financialization of rental housing: Evictions and rent regulation. Cities 105: 102787. https://doi.org/10.1016/j.cities.2020.102787.
• Lin, K.-H., and D. Tomaskovic-Devey. 2013. Financialization and U.S. income inequality, 1970–2008. American Journal of Sociology 118 (5): 1284–1329. https://doi.org/10.1086/669499.
• Maddison, A. 2006. The World Economy. OECD publishing. Mbaye, S., M. Moreno-Badia, and K. Chae. 2018. Global debt database: Methodology and sources (Working Paper No: WP/18/111). IMF Working Paper, no. WP/18/111.
• Mehrling, P. 2017. Financialization and its discontents. Finance and Society 3 (1): 1–10. https://doi.org/10.2218/finsoc.v3i1.1935.
• Moatsos, M. 2021. Global Extreme Poverty: Present and Past since 1820. How Was Life? Volume II: New Perspectives on Well-Being and Global Inequality since 1820. OECD Publishing. https://doi.org/10.1787/3d96efc5-en.
• Mohd Daud, S. N., A. H. Ahmad, and W. A. S. W. Ngah. 2021. Financialization, digital technology and income inequality. Applied Economics Letters 28 (16): 1339–43. https://doi.org/10.1080/13504851.2020.1808165.
• Moore, J. W. 2010. Cheap food & bad money: Food, frontiers, and financialization in the rise and demise of Neoliberalism. Food, Energy, Environment: Crisis of the Modern World-System 33 (2/3): 225–61.
• Morning Consult. 2022. The crypto report: Our analysts on the state of cryptocurrency.
• Nakajima, T., and H. Nakamura. 2009. The price of education and inequality. Economics Letters 105 (2): 183–85. https://doi.org/10.1016/j.econlet.2009.07.013.
• Our World in Data. 2022a. Economic growth. 2022. OurWorldInData.org/economic-growth.
• ———. 2022b. Extreme poverty in brief. 2022. OurWorldInData.org/extreme-poverty-in-brief.
• Palley, T. I. 2007. Financialization: What it is and why it matters (Working Paper No: 525). The Levy Economics Institute Working Paper Collection, no. 525.
• Popov, A. 2017. Evidence on finance and economic growth (Working Paper No: 2115). European Central Bank. https://data.europa.eu/doi/10.2866/996857.
• Seven, U., and Y. Coskun. 2016. Does financial development reduce income inequality and poverty? Evidence from emerging countries. Emerging Markets Review 26: 34–63. https://doi.org/10.1016/j.ememar.2016.02.002.
• Sweezy, P. 1997. More (or less) on globalization. Monthly Review 49 (4).
• Tomaskovic-Devey, D., K.-H. Lin, and N. Meyers. 2015. Did financialization reduce economic growth? Socio-Economic Review 13 (3): 525–48. https://doi.org/10.1093/ser/mwv009.
• Tridico, P., and R. Pariboni. 2018. Inequality, financialization, and economic decline. Journal of Post Keynesian Economics 41 (2): 236–59. https://doi.org/10.1080/01603477.2017.1338966.
• We Are Social, and Meltwater. 2023. Digital 2023 global overview report. https://datareportal.com/reports/digital-2023-global-overview-report.
• World Bank. 2022. Poverty and inequality platform: Percentiles [Data set]. World Bank Group. www.pip.worldbank.org.
• Zhang, R., and S. Ben Naceur. 2019. Financial development, inequality, and poverty: Some international evidence. International Review of Economics & Finance 61: 1–16. https://doi.org/10.1016/j.iref.2018.12.015.