Report
Does regulation of the economy improve well-being?
A left-wing economic policy programme, like the one proposed by France’s left-wing parties, revolves around what can be termed “regulation” of the economy: Freezing prices of basic necessities; Rejection of competition in public services (transport, etc.), nationalisations; Rent control; Conversion of platform jobs into salaried jobs; Environmental planning ; Strong job protection, high minimum wage; Low retirement age set by government. But this programme overlooks the principles of the market economy: Production will not take place if prices are frozen at a time of rising production costs (commodities, construction costs); Employment will not grow in a highly regulated labour market (job protection, administered nature of employment contracts, early retirement age); yet it is vital that employment does grow; The energy transition will not take place without price signals; Without competition, there is less innovation.
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Natixis
Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.
Patrick Artus
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