A good financial sector promotes a healthy economy
The financial sector should be judged not on its profitability and size but on how well it promotes a healthy, more competitive economy over the long term.
The US financial sector’s share of gross domestic product grew from less than 5 per cent in 1980 to more than 8 per cent in 2007 — the largest share in any advanced economy except Switzerland.
With this growth came big increases in financial sector employment and compensation.
