Applying the concept of structural complexity to the financial structure leads us to explore questions of vital interest to the future of the some key financial institutions and policies. This chapter focuses on three such topics: documentation of some important changes in the structure of wealth and ownership; determination of the relationship these changes to increases in the structural complexity of the financial system; and empirical investigation of the impact of the increasing structural complexity on financial distress and the volatility of the financial system.

The analysis starts with a discussion of the types of wealth in the economy, who owns it, and in what forms it is held. I show that an increasing share of personal wealth is intangible, and that much of this intangible wealth is either created directly by the government or generated by governmental activities. At the same time, the direct share of the government in the ownership of the nation's tangible wealth is decreasing. Focusing on just one type of wealth, I provide evidence that financial intermediaries are holding an increasing share of financial assets, a trend that I contend is closely tied to the increasing structural complexity of the financial system.

The financial superstructure, through which personal wealth is accumulated and maintained, is an integral part of U.S. capitalism. I argue that an appropriate indicator of structural complexity of this part of the economic system is the ratio of financial claims to the value of the actual physical assets that are ultimately involved. Such an indicator is sometimes called leverage.