Financialization

Financialization refers to the growing dominance of financial actors, markets, and motives in the economy, where profit generation shifts from producing goods and services to financial activities like trading, investing, and speculation. This process can lead companies to prioritize stock prices and short-term financial gains over long-term productive investments, influencing economic stability and societal wealth distribution. Essentially, financialization reflects an economy increasingly driven by financial motives rather than physical production, impacting how resources are allocated and how economic success is measured.