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Noah Smith

How Finance Took Over the Economy

Competition doesn't seem to erode the industry's huge profits.
Profit center.

Profit center.

Photographer: Michael Nagle/Bloomberg

A little while ago, Kevin Drum of Mother Jones -- a very smart and perceptive writer on economic and policy issues -- posed a big question: Why is finance so dominant in the U.S. economy? 

I think we do know a partial answer -- or several partial answers -- to this question.