How do shareholders achieve a high return on equity and capital without the risk that normally accompanies it?
In OECD countries, the return on equity and capital for shareholders is high and not very variable: this means that shareholders obtain a high return on equity and capital without the risk that normally accompanies a high return. How have they managed to maintain a high return on equity and capital by getting rid of risk? By skewing income distribution in their favour, particularly after periods of economic hardship, to rapidly restore profitability; By reducing the risk associated with high debt leverage by obtaining persistently low interest rates from central banks; By the trend increase in company value (share prices) thanks to expansionary monetary policies and money creation (which increases the return on capital invested in shares, not the accounting return on equity).