US business cycle evolution after financial deregulation and the advent of neoliberalism

Using economic growth models, I analyzed how U.S. job creation in economic sectors changed after the advent of neoliberalism, in comparison to the post-war business cycle. Was the switch of job creation from manufacturing to finance only related to the increased profits in the finance sector, or were there any other causes that determined this evolution? I focused on the influence of the positive wealth effect in the progress of the business cycles. The positive wealth effect, fueled by the new financial products and the housing bubble, changed the structure of the U.S. economy. The study of the house-price-to-income ratio emphasized the influence of the emergence of the consumerist society, which changed the growth rates in U.S. economic sectors. The diminishing role of labor unions through the Taft-Hartley Act created a feeling of insecurity, which shifted the orientation of individuals to the new technology sectors. The rapid economic growth of Asian states after the 1980s underlined the diminishing role of manufacturing in the U.S. economy and the growing role of the finance sector. The economic policies under the Reagan administration increased the dominating role of the private sector. The deregulation process influenced the rapid growth of the finance sector in the economy, while manufacturing started to decline due to competition from new emergent states. The labor force seized the rapid growth of the new sectors and started to migrate from the traditional U.S economic sectors. As the economy progressed, the gross capital formation underlined the sector economic trends. Neoliberalism and the globalization forces shaped the U.S. economy after the 1980s, but this process created an indebted population dominated by insecurity. Study results underline the relationship between three factors that shaped the last decades of U.S. economy: sector jobs creation, the wealth effect, and consumer debt. The switch from manufacturing to finance and technology sectors influenced the mentality and behavior of consumer patterns. These patterns, driven by the wealth effect, led to a rapid increase in consumer debt.