Study On The Capitalist Economic Operation In The Process Of Financialization

Financialization is used to describe the new features of development of contemporary capitalism. It shows the changes of world capitalism more than30years together with globalization and neoliberalism."Among the globalization, neoliberalism and financialization. the dominant power is financialization, and the other two is essentially the financial monopoly capital expands in the global." It can be learnt that, financialization has important connections with both domestic and international economic activities of capitalism. It’s key point to study process of contemporary capitalism economic operation, including acquisition and distribution of profits, capital accumulation, as well as the whole process of capitalism production. After outbreaking of the Subprime Crisis in2007and European Sovereign Debit Crises in2009, many mainstream economists and Marxist economists mentioned financialization when analyze causes. Therefore, fanancialization is focused as an economic problem again.Academia has researched the fanancialization, including the definition, background and driving force, important performance, also discussed the influence of economic operation, relationship between financialization and financial crisis. The main performance of fanancialization:is expansion of financial sector, increase of the financial profit share, shareholder value orientation of governance model, and the expansion of debit. Fanancialization prompted the position of financial department, enlarged the income distribution gap. And financial liberalization leads to financial fragility, even the financial crises. Meanwhile, they are divided on some problems, for example how to define a concept of financialization, which can fully summarize financial performance; the driving force of financialization:research about differences and relations of financial monopoly capital era and financialization era.This article bases on background of financial, using analysis framework of Marxism, combines views with theory, experience, and history, from a deeper level to study capitalist economy operation, points out the financialization is an inevitable trend of capitalist economic operation under the capitalist production relations. Financialization intensifies the vulnerability of capitalist economy. That intensifies the basic contradiction of capitalism and accelerates arrival of economic crisis.Firstly, we summarizes the Financialization based on relevant research achievements, define Financialization as formation of a new mode of capital accumulation, finance is leading position in this model, focus on the pathway of the capital accumulation is more and more through financial channels, and the independent tendency of finance capital accumulation. Then, from the views of productivity and production relations, elaborates the root of financialization. The development of social division of labor which decided by productivity produced the financial sector, but fundamentally, the reason of driving financialization is capitalist production relations; one hand, paradox of capitalist production relations and value proliferation let the capital accumulation relys on financial channel more and more; On the other hand, financialization is the choice for solving the shortage of demand under the capitalist production relations.Acquisition of surplus value always is the only motive and purpose of capitalist production, performance for chasing profit and capital accumulation constantly. When real sector economy profits fall down, capital moves from production department to financial sector. Whether the financial sector can meet capital grab desire for profits, is a question. For the purpose to answering the question and explaining the source of financial profit, we discuss the relationship between the financial profits and the average profit. We analyze four main forms of financial profit from the dimensions of capital function. Concluding that gains financial promoter profit and speculative profit, is the important reason for financial sector keeping excess profit. Empirical studies show that until the1980’s, financial profit also adjusted by the average profit, thus they roughly have the same trends; in process of financialization, the share of financial sector participation in profit distribution obviously increases. On the whole, the rate of financial profit has exceeded the rate of profit.In the process of financialization, the increasing of profit rates of financial department, and financial profit allocation share in the gross profit, indicates that the capital allocation of total profits moves towards finance department or finance capital. This tendency has important influences on The Social Structure of Accumulation (SSA). According to discuss on relation of financialization and neoliberalism, the fusion of neoliberalism and financialization is the most fundamental characteristics of neoliberalism accumulation structure, because it has strong financial dominance, and formed a finance-dominated capital accumulation model gradually. Then, this paper studies internal operation mechanism and influence of the finance-dominated capital accumulation model. According to separating the finance capital accumulation and actual capital accumulation, we examine the operating mechanism of finance-dominated capital accumulation model. In the theory, finance capital accumulation and actual capital accumulation haves different conditions. But the source of financial profit is the surplus value that created by real sector, so the actual capital accumulation is an important precondition of the finance capital accumulation. At the same time, finance capital accumulation can converted into actual capital accumulation through circulation effect, investment effect and wealth effect.From the point of actual economic operation in the process of financialization. finance capital accumulation is tendency to independent more and more is the key point of the operation mechanism of finance-dominated accumulation model. One hand, finance-dominated accumulation model of predatory, extends grab profit from division of surplus value to deprivation of capital, wages, and taxes. On the other hand, claims and ownership certificate of finance capital accumulation can get transaction profit not through any production process, which meet the capital’s fetishism nature. This also is the most important difference between period of financialization and finance capital rule mentioned by Lenin. About influence of financed-dominated accumulation model to real sector accumulation, basing on US economic data, we find in the process of financialization, rate of profit and accumulation rates of real sector are failed to synchronous growth. On the contrary, the accumulation rate of real sector is reduced, that is mainly because the enterprise profits share is gradually increased, caused lack of accumulated profits which can be used in reality real sector.The capitalist economic operation centered on capital accumulation, financialization permeates to each link of the whole process of capitalism production, including the production, distribution, exchange and consumption. On the production side, the finance capital rapes industry capital through asset break-up, symbiosis with real estate capital; from empirical point of view, the finance capital doesn’t develop to the Marx’s prediction, but subordinate to the development of industrial capital. About the side of distribution, financial ownership weakens the labor force, intensifies the unequal income distribution and the accumulation of wealth inequality. In the exchange side, financialization changed the traditional mode of Commodity Exchange, promotes the historical role of exchange, also intensifies the conflict of realization of exchange value.And the consumption side, financialization tries to solve the insufficient consumption, just pushs consumption to the depper contradictions, the "overdraft" economy operation intensifies financial fragility also.Studying on the capitalist economic operation in the process of financialization in this paper, we know that financial. fragility intensified by financialization, inherent paradox of the finance-dominated accumulation model, and deprive of the finance-dominated accumulation model, intensifies the basic contradictions of capitalism. Also we know the financialization moving towards to crisis is inevitable. The logic of financialization moves towards the economic crisis, will have important implications on the economic construction to socialist market of our country:coordinating development of finance, real estate and real economy; strengthening the development of real economy through independent innovation; improving labor income distribution to narrow income gap; finally, making common prosperity as directions and objectives of reform and development. Through these measures to avoid the transformation mode of development into the financialization, realize steady progress of socialist market economy.The possible innovations of this paper are mainly the following points:(1) Study on the process of capitalist economic operation, is on the whole process of capitalism production. Now the researchs on capitalist economic operation in the process of financialization, few from the whole production process of production, distribution, exchange, consumption to do systematic explanation. Our paper tries to use basic principles of Marxism, examine financialization relationship with the total process from production, distribution, exchange and consumption, in order to deepen understanding of new features of capitalist economy in the process of financialization.(2) The basic method is Marxism. We use the category of productivity and production relations to make clear to the root of financialization. At present, most research literatures about financialization stopped at level of analysis about the rate of profit to fall. Researching the root of financialization from productivity and production relations is rare. Therefore, basing on the the category of productivity and production relations to research the root of financialization, is one characteristic of this article.(3) In the study of the financial sector profit in the literature, the more attention in the cause of monopoly, few from the relations of financial profit and average profit. Basing on the Hilferding’s analysis of bank profit, we divide finance capital to monetary capital, loan capital, venture capital, the financial sector’s speculative capital, from the function of capital dimensions. And we discuss the relations between finance capital profit and average profit also, thus to analyse the causes of financial sector’s excess profit.(4) Throughing research on the sustainable conditions of accumulation of the finance capital accumulation and actual capital, tentatively analysing the mechanism about finance capital accumulation transforming into actual capital accumulation. In the current literature studies only pay attention to the virtuality and predatoriness of the finance capital accumulation, but not observed in finance capital accumulation by converting some ways for actual capital. Therefore, through the analysis of some mechanism effect, this paper, trying to establish relationship between finance capital and the actual capital in another layer, and expecting academics have a more in-depth research in it.