A casino economy refers to an economic model where speculation and high-risk financial transactions dominate over the traditional, more stable economic activities. The metaphor likens the economy to a casino where individuals and entities engage in high-stakes gambling, attempting to make significant gains through risky financial maneuvers rather than by contributing to the production of goods or services.
The term was popularized in the late 20th century, during a time of significant financial deregulation and the rise of new financial products, such as derivatives and hedge funds, which allowed for increased speculation and risk-taking in the financial markets. (資料來源)
The roots of the casino economy can be traced back to the 1970s and 80s when significant financial deregulation took place, particularly in the United States and United Kingdom. This deregulation allowed banks and financial institutions more freedom to create and trade new financial products and engage in more speculative activities.
The rise of technologies, particularly in the digital realm, also contributed to the growth of the casino economy. The internet and digital technologies made it easier for individuals and entities to engage in high-risk financial transactions, leading to an increase in speculative activities.
The casino economy came to prominence in the 2008 financial crisis, which was largely blamed on risky financial practices and speculation in the housing market. (資料來源)