The more time passes, the more dangerous and difficult it will be to correct the skewing of income distribution in OECD countries

Income distribution is skewed at the expense of employees in most large OECD countries, with the exception of France and Italy. This abnormal skewing of income distribution must be corrected as it generates an inefficient equilibrium, with a slowdown in household demand and a level of corporate earnings that is higher than what is needed to finance investments. But correcting the skewing of income distribution would lead to faster wage increases, higher inflation and higher interest rates. The more time passes , the more painful this rise in interest rates will be because of the accumulation of debt at very low interest rates. It must be realised that a return to a more equitable and efficient income distribution may trigger a debt crisis, especially as this correction of income distribution will be carried out belatedly .