Report
Patrick Artus

The only solution in France and Italy is to increase the employment rate

The Italian government wants to give out more income to Italian households; the French government wants to increase the purchasing power of French households. Both governments therefore have a choice between: Implementing a zero-sum game between social classes: taking from companies to give to households; taking from pensioners to give to workers; taking from the rich to give to the poor, etc. This would not improve the overall situation and would be dangerous economically and politically; Increasing the fiscal deficit sharply, which would postpone the problem and give rise to the risk of a sharp increase in long-term interest rates; Choosing the only reasonable solution: implement policies (training, education) that increase the employment rate and generate additional income that can then be paid to households or the lowest-income earners. Without an increase in overall income and therefore in the employment rate, there is no smart way to increase the purchasing power of households and wage earners.
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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