Financialization Hypothesis Debunked: Weak Profitability, Not New Capitalism.
The Financialization Hypothesis suggests that capitalism has drastically changed due to the dominance of the financial system, especially after the 2008 crisis. However, this article argues that the hypothesis is misleading. The growth of the financial sector during times of low profitability is not a new era of capitalism but a typical response to economic challenges. Instead, the Marxist theory of crisis and fictitious capital provides a better understanding of this process.