Jeremy Grantham's quarterly letter analyzes the outsized growth of the banking industry in Western economies. Grantham argues that the 3% of GDP devoted to financial services in 1965 was sufficient, while the increase to 7.5% of GDP by 2007 provided little real value and instead taxed the rest of the economy. This extra spending on banking slowed the growth rate of the non-financial sector from 3.5% annually before 1965 to 2.4% between 1980 and 2007. Grantham believes the benefits of banking industry growth have accrued mostly to those receiving outsized bonuses, rather than the broader economy.