Businesses are primarily valued based on their discounted future cashflows. American businesses are worth much more than their European counterparts because investors (correctly) expect that American businesses will more aggressively seek profit. By contrast, businesses that don’t make money and that are not expected to make (much) money in the future are worth nothing.

In most countries the stock market doesn’t go up. European stock markets needed ~15 years to recover from the 2008 highs because European businesses don’t make money. The Japanese stock market has languished for 30 years. Chinese businesses that get too cocky get the Jack Ma treatment. Turkey and Venezuela had their currencies collapse.

American financialization has its downsides for sure. Some American businesses will do grossly immoral things for profit. But nonetheless having a functioning stock market that rewards good capital allocation is a great thing. Otherwise all money will just end up in real estate and that is way worse for society.