Study On Root Of The The U.S.Economy Crisis Under The Background Of Financialization

In 2008, the United States broke out in the most serious economic crisis since World Warâ…¡. Western mainstream capitalist economics has always denied the possibility of economic crisis, and thought the accidental errors of the policies and practices and the impact of external factors were the main reasons of triggering crisis. Other scholars have proposed their views on the causes of the crisis from fluctuations in interest rates and house prices, financial supervision defects, excess liquidity, the deviation between U.S. hegemony and U.S. economic strength, the deviation between the virtual economy and real economy, excessive consumption, the crisis of neo-liberalism, financialization, and Marxist Economics.However, In view of Marxist economics, these scholars'views are not isolated, accidental, but there is close relationship. When exploring the root causes of the crisis, We thoughut the crisis can not simply be attributed to the operational level of technology and management. From the deeper view, The current economic crisis is the results of the deepening and concentration outbreak of the basic contradiction of capitalism in the new stage. The crisis embodies that the profound contradictions in the fiancailization process under the auspices of neo-liberal economic,and the unsustainablity of development model which is excessive reliance on financial.In this paper, after collating and summarizing the previous studies, based on the theoretical, historical, multi-faceted empirical analysis, using a wealth of US economic data, from the two aspects of the financialization and profit decline we we argue that the root of causing the economic crisis is still the basic contradictions of Capitalism, and which did not beyond the logic of Marx's theory of inevitability of Capitalist economic crisis, and the financial crisis is the manifestation of contemporary capitalism economic crisis.In this paper, we firstly reviewed and combed the relevant literature of "financialization", and redefined the conception of "financialization", and draw a conclusion that financialization is development and extension of monetization, and is the result of highly developed market economy, and is the inevitable trend of economic and social development. Then, from the view of the mechanism between financial capital and physical capital,we analyzed the total quantity of financial capital and physical capital which how to affect trendency of financialization. The results showed that in the long-run equilibrium, the profit gap between the departments can guide the flow of capital between the sectors, and in the short run equilibrium, the profit margin is the most important factor of short run balance. Whether growth or decline, the process of economic development depends on capital accumulation. As the core indicators of capital accumulation, profit rate can reflect the degree of proliferation of capital, so the problem of profit rate has become the core issue of economic development. Subsequently, based on the theory of Marx's profit margins, we firstly tried to calculate profit margins of non-financial and productive sectors on the U.S. macro data, and analyzed the reasons for the trend of profit margins in the United States after the war, and analyzed how profit margins to affect financialization from three aspects of changes in the financial system, the financial sector structure, enterprise income structure analysis. The decline of profit margins in the non-financial and productive sectors has greatly promoted the development of the financial sector, but also foreshadowed the excessive financialization in U.S.Law of profit margins decline is the pillar of the Marxist theory of capitalist economic crisis, and thus reveals the limitations of the capitalist mode of production. The relation between realization of economic crisis and profit decline is that the decline in profit margins will increase the contradiction between the production of social and the form of capitalist production possession, and further promote the realization of the economic crisis.With the process of financialization deepening, financial operations and economic have a operation of the higher degree of integration, which will undoubtedly become increasingly complexity and socialization of financial risks, and have a profound impact on the fragility of the financial system. The imbalance of economic development which caused by the decline of profit in non-financial and productive sectors will lead to excessive financialization, and the excessive financialization has further exacerbated the vulnerability of the financial system, which created the conditions of the financial crisis. The excessive financialization is the result of the decline of profit in non-financial and productive sectors, so the financial crisis caused by excessive financialization also belong to the scope of an economic crisis. Therefore, we can say that the financial crisis of contemporary capitalism has become the manifestation of the economic crisis.