@paysdorient

**The Rise of Financialization and Wall Street’s Reign** As social programs expanded, new credit support emerged to help low-income households buy homes, leading to mass indebtedness and placing Wall Street at the center of the economy. This era saw the rise of 401(k)s and savings accounts, driving a stock market boom that made it increasingly difficult for most people to invest, as wages stagnated. People borrowed more to chase rising asset prices, creating a cycle of inflation. To make investing accessible, stock indices were created, but health insurance costs also soared, pushing people to borrow further to sustain their lifestyle. This era fostered a stock market obsession and a “millionaire dream,” with Wall Street becoming the focal point. The market crash in 1987 followed, prompting the Federal Reserve to lower interest rates, paving the way for economic growth managed through interest rate policy.

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