askchapo

Yeah, exactly, because finance doesn't produce anything. Broadly speaking, any money a financier takes home is rent. A socialist country should understand that finance doesn't produce any value by itself, and is only capable of extracting profits by stripping the value away from industry in the form of rents. That phenomenon is the whole driving force of imperialism: where industrial capital is the centralizing force that socializes labor and unites it with capital to produce commodities at a large scale, finance capital goes backward and deindustrializes an economy by adding more friction between industrial capital and labor; eventually finance capital captures industrial capital completely and gains freedom of movement across the world, and when finance capital can freely move across the world it quickly starts to divide it and claim it for the interest of large capitalists.

I like this brief Yanis Varoufakis interview in China where he explains how China and the US are totally different in how they've managed financial crises.