Report
Patrick Artus

The objectives of capitalism and consumer protection

How has capitalism made the requirement for a high return on equity and consumer protection compatible? To obtain a high return on equity, there was a skewing of income distribution against employees which, to stimulate consumption, imposed offshoring and the use of cheap fossil fuels in order to reduce selling prices and offset the small wage increases . There will now be a movement of reshoring and an acceleration in the energy transition, which will drive up the prices of the goods consumed. As the ongoing skewing of income distribution against employees is no longer offset by low prices of goods imported from emerging countries and fossil fuels, this skewing will probably no longer be bearable, and a lower return on equity will have to be accepted.
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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