Report
Patrick Artus

What developments could completely change the US business model?

We believe two possible developments could completely change the business model in the United States: A "rebellion by the poor", which would lead to income distribution more in favour of low-income employees. Currently, income distribution is drastically in favour of profits and the richest Americans, and growth is driven by wealth effects caused by the rise in share prices linked to this model (due to the increase in earnings, and the share buybacks that makes this possible). We would then see a growth model driven by consumption by the middle class and low-income Americans; An end to the dollar's reserve currency role, which would require the United States to eliminate its external deficit and to scrap the model where growth is linked to a low level of savings and to external borrowing .
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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