How the Finance Industry Hurts the Economy

In perhaps the starkest illustration, economists from Harvard University and the University of Chicago wrote in a recent paper that every dollar a worker earns in a research field spills over to make the economy $5 better off. Every dollar a similar worker earns in finance comes with a drain, making the economy 60 cents worse off. [...] ...the growth of complex financial products has served primarily to boost income for the firms themselves, Philippon said. A new paper from researchers in t...

 More Than Material Goes Into Consumer Products

Suppose, in our imagination, we take this radio apart. Suppose we take all the pieces out of the wooden box we call a cabinet. Now, you could call in a good cabinetmaker and say, "Jim, can you make a cabinet like that for me?" He'd answer you, "Of course I can. For about five dollars." You could say to another fellow, "How much can you make that pin for?" He might say, "Oh, about a dime." Then you look at all the parts on the table. Someone had to make every piece in the set. If you checked ...