Report
Patrick Artus

Towards an even more “savage” capitalism after the coronavirus crisis?

Public opinion and most commentators are expecting a reformed, more inclusive capitalism that corrects the imbalances it creates after the coronavirus crisis. But could capitalism become more “ savage ” and harsh instead , further amplifying its shortcomings? The poor situation of companies after the coronavirus crisis (higher debt, lower profits, lower labour productivity due to the new health standards) could lead them, in order to restore their profitability and repair their balance sheets, to: Offshore more and not less to low-labour-cost emerging countries; Focus more on wage austerity Accept even greater debt leverage to obtain higher returns on equity; Seek monopoly rents even more; Encourage even more tax competition between countries; Reject climate and environmental rules instead of incorporating them more rapidly. All these developments would be the exact opposite of those that are hoped for or expected.
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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