An interesting fact about GVA Finance

As we saw yesterday, the Gross Value Added of Corporate Finance has grown faster than Government GVA, faster than Nonfinancial Corporate GVA, and faster than Household GVA. GVA Finance has grown faster than all three of the others, since 1947. Like, finance always grows faster than the rest.

Now we know that, you may be interested to know that GVA Finance typically runs between 2 and 3% of All Sectors debt:

Graph #1: GVA Finance as a Percent of TCMDO Debt

Never reaching as low as 1.0%, never reaching as high as 3.0%, GVA of corporate finance was always in the neighborhood of 2% of "All Sectors" debt. It did show a rising trend in the 1970s when interest rates were rising. This supports the view that high interest rates mean increasing income to Finance. (So, when the Fed raises interest rates to fight inflation, Financial income goes up. Good to know.)

And financial income did go sharply low during the financial crisis. I guess that made it all worthwhile...  Just jokin.