"Our healthy economy benefits
It's now estimated that only 5% of financial capital is transacted
"real" economy (ie trade and investment). The other
95% is used in
short-term speculation eg making money from money (mainly
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
the 70s. Another reason is the technological advances that
electronic transactions of money possible. One of the effects
economic shift is to drive down the real value of wages.