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).