A FIRE economy is any economy based primarily on the finance, insurance, and real estate sectors.[1] Finance, insurance, and real estate are United States Census Bureau classifications. Barry Popik describes some early uses as far back as 1982.[2] Since 2008, the term has been commonly used by Michael Hudson[1] and Eric Janszen.[3] It is New York City's largest industry and a prominent part of the service industry in the United States overall economy and other Western developed countries.
This term is frequently used in the financial press and blogs. Its origin is in the realm of North American industrial classification. [2] "Finance, Insurance, and Real Estate" is the title of 1992 U.S. Census Bureau Standard Industrial Classification (SIC) Division H.[4] Its coverage[5] was "All domestic establishments that provide financial, insurance, or real estate services." Its coverage was elaborated[6] in two-digit SIC codes 60 through 67. The SIC was replaced by the North American (Canada, US, Mexico) Industry Classification System[7] (NAICS) starting in 1997. The SIC had ten top-level divisions, NAICS has twenty. The new NAICS essentially split the old Division H into code 52 Finance and Insurance[8] and code 53 Real Estate and Rental and Leasing.[9]
The newer NAIC two-digit codes, 52 and 53, are extensively elaborated – down to the five-digit level. They remain largely unchanged in the 2007 NAICS drill down chart[10] whose details are this for code 52[11] and this for code 53.[12][13][14]
The second use of the term derives from the study of financial capital and income – as opposed to industrial capital and income. To characterize the so-called financial services industries, economists carved out part of the SIC/NAIS breakdown of types of industry: finance, insurance, and real estate. They contracted this to FIRE, deliberately invoking the negative connotations which were, at least then, contrary to conventional wisdom. The following table elaborates on this dichotomy in the header row and gives examples in ensuing rows (where?).
At the city scale, Sassen has done a lot of researches of the FIRE influences to the Global Cities, such New York, London and Tokyo, since 1984.[15] She and a group of scholars including Feistein, argued that FIRE aggravated social inequality and polarization of these cities.
Criticisms
Much criticism exists on the shifting of the US economy to a FIRE economy at the expense of a manufacturing and export-based economy. As the consumer of last resort, many believe that the United States has eschewed productive elements of its economy in favor of consumption to its long term detriment:[citation needed]
Particularly after 1973 [...] pundits of the status quo hailed the proliferation of the "FIRE" (finance, insurance, real estate) economy as the coming of a new "service" "post-industrial" economy that would replace the old "smokestack" economy and the jobs lost through plant closings, restructuring, and down-sizing [...].[16]
^ ab. Official FIRE Economy. iTulip Inc. 2008. Archived from the original on 17 May 2014.
^ abBarry Popik (25 June 2005). "The Big Apple: FIRE (Finance, Insurance, Real Estate) & ICE (Intellectual, Cultural, Educational)". barrypopik.com.
^Horton, Scott (27 January 2008). "The Bubble Bursts". Harper's Magazine.
^"1992 U.S. Census Bureau Standard Industrial Classification (SIC) Division H".
^"CENSUS OF FINANCE, INSURANCE, AND REAL ESTATE". census.gov.
^. Archived from the original on 2013-11-20. Retrieved 2017-12-06.{{cite web}}: CS1 maint: archived copy as title (link)
^Classification Development Branch, Economic Statistical Methods Division. "North American Industry Classification System (NAICS) Main Page". www.census.gov.
^. Archived from the original on 2014-04-25. Retrieved 2017-12-06.{{cite web}}: CS1 maint: archived copy as title (link)
^. Archived from the original on 2014-04-25. Retrieved 2017-12-06.{{cite web}}: CS1 maint: archived copy as title (link)
fire, economy, economy, based, primarily, finance, insurance, real, estate, sectors, finance, insurance, real, estate, united, states, census, bureau, classifications, barry, popik, describes, some, early, uses, back, 1982, since, 2008, term, been, commonly, u. A FIRE economy is any economy based primarily on the finance insurance and real estate sectors 1 Finance insurance and real estate are United States Census Bureau classifications Barry Popik describes some early uses as far back as 1982 2 Since 2008 the term has been commonly used by Michael Hudson 1 and Eric Janszen 3 It is New York City s largest industry and a prominent part of the service industry in the United States overall economy and other Western developed countries Contents 1 Census Bureau classification 2 Criticisms 3 See also 4 ReferencesCensus Bureau classification EditThis term is frequently used in the financial press and blogs Its origin is in the realm of North American industrial classification 2 Finance Insurance and Real Estate is the title of 1992 U S Census Bureau Standard Industrial Classification SIC Division H 4 Its coverage 5 was All domestic establishments that provide financial insurance or real estate services Its coverage was elaborated 6 in two digit SIC codes 60 through 67 The SIC was replaced by the North American Canada US Mexico Industry Classification System 7 NAICS starting in 1997 The SIC had ten top level divisions NAICS has twenty The new NAICS essentially split the old Division H into code 52 Finance and Insurance 8 and code 53 Real Estate and Rental and Leasing 9 The newer NAIC two digit codes 52 and 53 are extensively elaborated down to the five digit level They remain largely unchanged in the 2007 NAICS drill down chart 10 whose details are this for code 52 11 and this for code 53 12 13 14 The second use of the term derives from the study of financial capital and income as opposed to industrial capital and income To characterize the so called financial services industries economists carved out part of the SIC NAIS breakdown of types of industry finance insurance and real estate They contracted this to FIRE deliberately invoking the negative connotations which were at least then contrary to conventional wisdom The following table elaborates on this dichotomy in the header row and gives examples in ensuing rows where At the city scale Sassen has done a lot of researches of the FIRE influences to the Global Cities such New York London and Tokyo since 1984 15 She and a group of scholars including Feistein argued that FIRE aggravated social inequality and polarization of these cities Criticisms EditMuch criticism exists on the shifting of the US economy to a FIRE economy at the expense of a manufacturing and export based economy As the consumer of last resort many believe that the United States has eschewed productive elements of its economy in favor of consumption to its long term detriment citation needed Particularly after 1973 pundits of the status quo hailed the proliferation of the FIRE finance insurance real estate economy as the coming of a new service post industrial economy that would replace the old smokestack economy and the jobs lost through plant closings restructuring and down sizing 16 See also EditBoomburbs Edge city Exurb FinancializationReferences Edit a b What is the FIRE Economy Official FIRE Economy iTulip Inc 2008 Archived from the original on 17 May 2014 a b Barry Popik 25 June 2005 The Big Apple FIRE Finance Insurance Real Estate amp ICE Intellectual Cultural Educational barrypopik com Horton Scott 27 January 2008 The Bubble Bursts Harper s Magazine 1992 U S Census Bureau Standard Industrial Classification SIC Division H CENSUS OF FINANCE INSURANCE AND REAL ESTATE census gov Archived copy Archived from the original on 2013 11 20 Retrieved 2017 12 06 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Classification Development Branch Economic Statistical Methods Division North American Industry Classification System NAICS Main Page www census gov Archived copy Archived from the original on 2014 04 25 Retrieved 2017 12 06 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Archived copy Archived from the original on 2014 04 25 Retrieved 2017 12 06 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Pam Sadowski SSSD NAICS Search census gov Pam Sadowski SSSD NAICS Search census gov Pam Sadowski SSSD NAICS Search census gov Archived copy Archived from the original on 2014 02 15 Retrieved 2017 12 06 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link Archived copy Archived from the original on 2014 09 22 Retrieved 2017 12 06 a href Template Cite web html title Template Cite web cite web a CS1 maint archived copy as title link The global city New York London Tokyo Princeton Princeton University Press 2001 updated 2d ed original 1991 ISBN 0 691 07063 6 Loren Goldner Archived from the original on 2008 08 30 Retrieved from https en wikipedia org w index php title FIRE economy amp oldid 1169496448, wikipedia, wiki, book, books, library,
