OECD: A double transfer of risks

The recent trend in relations between companies and employees has been characterised by a transfer of risks (economic and corporate) from the companies to the employees. Since the employees bear more risks, they turn to governments to demand protection against these risks through more generous welfare benefits, protect ionism against competition from other countries, pay increases and rejection of immigration. Ultimately, OECD companies (their shareholders) will have preserved a very high return on their equity while transferring the risks to the government.