Report
Patrick Artus

Is it necessary to choose between solidarity and economic efficiency?

Solidarity in a country means that social welfare is of good quality, redistributive policies are large, and there is little poverty. Does the choice of strong solidarity lead to a loss of economic efficiency? This may be the case if solidarity leads to a high tax burden that weakens employment and investment, and to discouragement of innovation or effort. When comparing OECD countries, we see that economic policies that ensure strong solidarity are sometimes associated with a loss of efficiency for the economy (size of redistributive policies) , but not systematically (fight against poverty).
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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