Larry Fink links America’s 250 years to the rise of financial markets

BlackRock CEO Larry Fink he recently published his annual chairman’s book and noted the importance of celebrating America’s 250th birthday this year, which brings a similar milestone to the modern economy.

“In July, the United States will celebrate the country’s 250th birthday. But 2026 is more than an American celebration,” Fink wrote.

“It is historic that in 1776, as Thomas Jefferson was writing the Declaration of Independence in Philadelphia, Adam Smith was publishing ‘The Wealth of Nations’ in Scotland – the foundational text of modern economics.”

“But what started as a coincidence, over time, has become dependent. These two ideas reinforce each other: Democracy depends on people feeling that they have a real stake in the future of their country. And capital markets are now a way to make that stake real – real in dollars, euros, yen,” he said.

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“Think how new this all is. In 1776, there was no comprehensive system of financial markets connecting ordinary citizens. economic growth. Today, global financial markets – public and private – are approaching $300 trillion in value. And most of that growth has happened in the last forty years,” Fink said.

“BlackRock has grown with this change. And what we’ve seen, internationally, is that the stories I just shared are just the beginning,” he wrote.

“Much of the world is in the early stages of building markets that allow people to not only develop their own economies – but also play an important role in the growth they create.”

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The US will mark 250 years as a nation this July, and this year also marks the anniversary of Adam Smith’s “The Wealth of Nations,” a foundational text on modern economics. (Michael Nagle/Bloomberg via Getty Images)

Fink’s book discussed how investing for the long term it can create a kind of “social miracle” in the way financial markets stimulate economic growth.

“When people invest their savings — over decades, not days — capital markets use that money, financing companies, infrastructure and jobs. And when that cycle happens in your country, your future and the future of your nation are linked,” Fink wrote.

“You help fund their growth. It helps fund yours,” he said.

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Fink said long-term investment can act as a “social miracle” that spurs economic growth. (James Carbone/Newsday RM via Getty Images)

Fink went on to say that his belief in the miracle of the long-term investment community was not only created by his decades of working in the country. the financial sectorbut also because of his upbringing with a father who owned a shoe store and a mother who was an English teacher.

“They didn’t make a lot of money… But they saved what they could and invested,” he said.

“This was the 1950s and 60s, when the Interstate Highway System was being built, mid-century. industrial development was beginning, and the automobile industry was changing American life. And in their own small way, they help finance all of that. They were part of the capital that made America today.”

“Over time, the benefits returned to them. By the time they retired, they had enough money to live comfortably past the age of 100. Because their wealth was closely integrated with the American economy,” said Fink.

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He added that this program continues to play out around the world and that BlackRock’s goal is to help make this social miracle increase the wealth of the American people.

“That social miracle continues to happen around the world. Expansion — so that more people can invest in their country’s growth and share in its rewards — is the task ahead of us,” Fink wrote.