Report
Patrick Artus

Is a highly regulated capitalism still capitalism?

If governments in OECD countries want to combat inequalities, reduce CO 2 emissions, prevent deindustrialisation and the disappearance of intermediate jobs, and curb exchange rate variability, they will have to regulate capitalism very actively , for example by: Intervening (via taxation, income policy) in income distribution between wages and profits; Setting a high CO 2 price and developing environmental regulations (standards for transport, construction, industry, etc.); Implementing “smart protectionism” (local content requirements, etc.); Authorising some capital controls. Would such a highly regulated capitalism still be capitalism? The answer is yes: companies would still seek to maximise profits, but faced with these incentives and constraints; there would still be a capitalist class (who provide capital) and a working class (who provide labour).
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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