Geographical distortions

As a country’s financial sector turns away from wealth creation towards wealth extraction, this has geographical implications. In the UK’s case, this means that wealthy parts of London, far from being the engine of the British economy, tends to suck wealth from the regions.

Large financial centres and clusters can suck human and financial capital, creating over-development, property and housing distortions, space limitations, overcrowding and infrastructure pressures, while other areas suffer from underdevelopment.

See, for example, this Finance Curse article in The Guardian (2018).