America’s Financial Leviathan
Today, finance and insurance in the US account for 8.4% of GDP, up from 2.8% in 1950 and 6% in 1990. So why has the devotion of a great deal of skill and enterprise to finance and insurance sector not paid obvious economic dividends?
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BERKELEY – In 1950, finance and insurance in the United States accounted for 2.8% of GDP, according to US Department of Commerce estimates. By 1960, that share had grown to 3.8% of GDP, and reached 6% of GDP in 1990. Today, it is 8.4% of GDP, and it is not shrinking. The Wall Street Journal’s Justin Lahart reports that the 2010 share was higher than the previous peak share in 2006.