Report
Patrick Artus

Will capitalism be able to evolve very rapidly?

To avoid being rejected by a growing share of the population, capitalism will have to evolve very rapidly in several directions: An acceleration in the energy transition, with a shift in investments towards renewable energies and electricity storage; A fair income distribution, with a significant increase in the lowest wages; the financing of a general - and not concentrated - wealth increase, for example with strong development of employee shareholding; in total, the acceptance of a reduction in the return on equity for shareholders; An end of tax competition between countries and the acceptance of a sufficient tax burden to finance social welfare, the fight against poverty and efficient public investments. It is entirely possible that capitalism will rapidly carry out these three changes and, under the threat of its disappearance, will transform itself from neo-liberal capitalism to ecological and social capitalism. There would remain a capitalism in the sense that there would always be a distinction, even if it is somewhat erased by employee shareholding, between providers of capital and providers of labour .
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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