ECONOMIC AND LEGAL CHARACTERISTICS OF FINANCIALIZATION: BENEFIT OR HARM TO THE REAL ECONOMY?

Abstract

The most significant domestic and foreign publications on the problem of reducing the negative impact of financialization on the rate of output growth and the increase of wages in the real sector of the economy are analyzed in the article. It is emphasized the financialization of the world economy forms a new paradigm of destructive changes in production and industrial capital from the side of financial capital, and, at the same time, conditions the need for the exploitation of national capital from the side of global oligarchic capital. Financialization causes an increase in the gap between the richest and poorest sections of the population, which, in turn, leads to the strengthening of social inequality in society and causes a sharp decrease in the growth rates of the real sector of the economy, as a result of which the processes of deepening poverty in countries are intensified. Regardless of their level of development and the state of financial capitalism. A more sharply delineated problem concerns those countries that are on the periphery of economic development, which includes Ukraine, the course taken by them towards financialization led to the development of significant destabilizing factors, which led to the generation of phenomena and processes that correspond to the concept of neo-feudalism (oligarchic-clan economy).The authors of the article proposed a number of measures aimed at reducing the withdrawal of financial capital outside the country, differentiated taxation of profits from the use of financial and production capital, and reducing the level of the shadow economy in Ukraine. In particular, it is proposed: to introduce progressive taxation of citizens’ incomes that exceed the average level in the state; direct additional financial resources from progressive taxation of enterprises to increase their own production capital; to increase the rate of taxation of profit from financial capital and reduce the rate of taxation of profit from capital invested in the real sector of the economy; to provide enterprises with irrevocable state financial resources for each new job vacancy created, as well as practice investment tax credits, in particular with regard to income tax and VAT; to develop a draft Law of Ukraine on the possibility of creating collective enterprises, the shares of which belong exclusively to each employee of such an enterprise; to ban the activity of financial oligarchic enterprises with their subsequent nationalization, the owners of which left the territory of our country during the period of mobilization in wartime.