$1 Earned in Research Adds $5 to Economy. $1 in Finance TAKES AWAY 60 Cents

Economic benefit is derived from different types of jobs being done we talked a lot about the multiplier effect in for example i told you that a dollar spent by the government on food stands as a much bigger economic impact than a dollar is spent on paying taxes for the rich we have a different analysis now from a new series of economic research that shows that money earned in the finance field working on wall street takes away 6th sense for every dollar earned compare that the working in research fields were every dollar earned in research is adding about 5 dollars to the economy this is a very interesting study economist at the imf analyse data across many years in a cross many
countries and they showed using a variety of methodologies that umm when you look at money earned in various industries you have a different positive effect on the economy for many industries but that money earned in finance is actually a net native to the economy to the tune of 60 cents for every dollar earned this is not an indication that finance is inherently bad on the contrary we should probably be thinking that a well-run well functioning financial system is actually a really positive thing for a market economy but with this seems to come down to is there in the united states the finance system has grown so much larger than it should be based on how well it performs think about this example um with your laptop as technology improves you can get a much better and better a laptop for a function of the price in finance the opposite has actually become true financial firms pocket about 2 percent of the money that passes through the hands which is essentially unchanged since back in 1920 be nice to add to compare that information right there father country is financial systems as inefficient is ours or not yeah yeah now we could have to say about your research yeah i invest in research see how that affects the economy right there yeah i clearly this just means that there a system is broken