The inequality issue has become a central concern for the majority of
economists. Financialization is, among others, a major cause of inequalities in income
and wealth. This paper examines opinions of some noted scholars on this issue. In
reality, the financial sector has moved away from its basic function of allocating capital
to productive uses, to those activities which do not create wealth rather, they transfer it
from others to finance manipulators. Financialization leads to the development of new
financial products that are several layers away from the real economy. The oversized
financial sector has strayed away from its essential function. Several empirical studies
document that “too much finance” may hamper growth, create distortions, and
contribute to income inequality.