Give everything that happens that’s financial sector, surely a role in the economy’s now smaller than before the recession hit, right?
Combined, the company’s finance and insurance accounted for 8.4% of the gross domestic product last year, according to the U.S. Department of Commerce, Eclipse Summit it hit in 2006. In 1950, the financial sector accounted for only 2.8% of GDP.
But it only goes so far. New research by New York University , Economist Thomas Philippon pointed out that the financial sector is extremely outsized. He found that, despite all the advances in information technology since the 1980s, the financial sector has become increasingly less efficient: all that has been retrieved from the increased computing power and extensive communications network has been taken away, and then some, by increased trade activities of social value is difficult to assess.