Report
Patrick Artus

Easier to combat income inequality than wealth inequality

We will take the example of France. Income inequality can be addressed through a number of policies and instruments, for example: An increase in the negative tax (the "activity bonus" in France); An increase in the lowest wages in the business sectors where they appear; A universal income for young people in a training programme; Development of profit-sharing and incentive schemes in companies. But wealth inequality is both much stronger and far more difficult to combat: Real estate prices could only be effectively curbed if much more housing was built; Public opinion rejects inheritance tax; Prices of financial and real estate assets are driven up by expansionary monetary policies. In large companies, employees can be made to benefit from this wealth accumulation by distributing more free shares and increasing employee shareholding. But how can other economic agents benefit from this wealth accumulation?
Provider
Natixis
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.

 

Analysts
Patrick Artus

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