Report
Patrick Artus

France has a lower tolerance for inequalities than other countries: What implications?

Perhaps because of the strong influence of Marxist thought, or the programme of the National Council of the Resistance towards the end of the Second World War, French public opinion has a lower tolerance for inequalities than other countries. What does this mean for France? Income distribution favours wage earners; Redistributive policies are large-scale. Compared with countries that have a higher tolerance for inequalities, France is therefore characterised by a higher tax burden (which finances the redistributive policies) and lower corporate cost competitiveness and profitability. This leads to a lower employment rate than in th o se other countries (due to the higher tax burden) and to a more severe deindustrialisation (due to the cost-competitiveness disadvantage). The French must therefore accept that their lower tolerance for inequalities comes at a macroeconomic cost.
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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