US Financial Capital Structural Change
The sector mix has changed since the implementation of supply side theory by economists and politicians in the US. With respect to the Fed data, that breakdown in the UniServEnt report is:
- P1 – Federal Government accounts
- C1 – State & Local Government accounts
- P2 – Household, Non-profit, Non-corporate non-financial Business
- C2 – Non-Financial Corporate & Financial Business with Rest of World Financial
This graph shows the transfer of financial wealth over this time from the decelerating, downward sloping Public (P1), Common (C1), and Club (C2) sectors to the accelerating, upward Private (P2) sector as a result of public policy set by Congress. This indicates the net holding of Corporate, Financial, and ROW accounts in the Private sector.