"Our healthy economy benefits us all"

 

It's now estimated that only 5% of financial capital is transacted in the
"real" economy (ie trade and investment). The other 95% is used in
short-term speculation – eg making money from money (mainly from the
international currency markets).

Prior to 1970, it was the other way around – ie 90% of transactions were on
trade or investment and only 10% on speculation. Part of the reason for the
change was the deregulation of the currency market by President Nixon in
the 70s. Another reason is the technological advances that make rapid
electronic transactions of money possible. One of the effects of this
economic shift is to drive down the real value of wages.