Speculative Profit Fetishism in the Age of Finance Capital

Abstract

This article tracks the rise of a new speculative form of ‘profit fetishism’ in the American stock market in the late 20th century as the control of American corporations shifted decisively from production-oriented managers to earning-oriented stockholders. During these years, speculative capitalists made the trading price of corporate stock the primary focus of corporate management. The heightened focus upon stock price coincided with a convergence of stock market actors upon the capitalized earnings model as the primary frame used to value corporate stock, displacing two formerly dominant frames, which focused (respectively) on hard assets and dividend payouts. Despite the notoriously unreliable and unstable nature of speculative accounting with respect to projected future earnings, such accounting profits have become the fetish of an age of speculative finance capital.