 |
|
 |
"Our healthy economy benefits
us all"
|
|
It's now estimated that only 5% of financial capital is transacted
in the
"real" economy (ie trade and investment). The other
95% is used in
short-term speculation eg making money from money (mainly
from the
international currency markets).
Prior to 1970, it was the other way around ie 90%
of transactions were on
trade or investment and only 10% on speculation. Part of the
reason for the
change was the deregulation of the currency market by President
Nixon in
the 70s. Another reason is the technological advances that
make rapid
electronic transactions of money possible. One of the effects
of this
economic shift is to drive down the real value of wages.

|