“The sober is the black sheep of the modern economy because he does not make his capital work, so he must be punished”

Ihe Beyond Growth conference ended in the European Parliament nearly a month ago (May 15-17). The opportunity to show again that ecology is making its way into public opinion, right up to the representative bodies of the European Union. The subject is no longer perceived as isolated, but rather systemic.

It is in this respect that the financial world began to be questioned. In a largely financialized economic system since the end of the 20th century^e century, the influence of this sector on the entire production system has been scrutinized: origin of capital, direction of investments, various incentives and taxes… There is, however, one major aspect that has escaped inspection: the cash.

Money, this thermometer and this blood of the economy, measure of all indices and magnitudes, the foundation of all exchanges, of all transactions, influencing the decisions of economic agents every day, has managed to dodge collective scrutiny. . But there is reason to raise eyebrows. Current inflation may have the merit of opening our eyes to the original sin of our resource-predatory system: the constant incentive to dump money.

Investment often becomes a headlong rush

In a system where savings are possible, investment is risky but healthy: it tries to create more added value from otherwise unproductive capital, but it can also lead to its loss. If there are no interesting opportunities, savings remain a viable alternative.

In other words, we invest, but not in just anything. But when money perpetually loses its value, saving is punished, and there are only two economically viable solutions: consume immediately or invest, that is, let someone spend for us, and hope. beat” inflation.

In a system where saving is sanctioned, and magic money the norm, investing is increasingly becoming a headlong rush. No politician wants to take responsibility for job destruction, unproductive activities are not cleaned up, and their losses are socialized.

Between 15 and 20% of “zombie” companies

Capital is channeled in part to ‘zombie’ companies, which survive only through grants or refinancing their debt. According a study by the Fed (American central bank), conducted each year between 2015 and 2020, academic research estimates between 15 and 20% the number of “zombie” companies among those listed on the stock exchange! i.e. almost one in five, and this before the Covid-19!

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