Steen Jakobsen, chief economist at Danish investment bank Saxo Bank, believes the “social contract” — the agreement between the ruled and the rulers — is now broken, and this can be seen in the rise of Donald Trump.
Jakobsen says we may have reached a nadir in terms of political ambitions, investments, capital expenditure, employment, inflation and growth. He sees this as the end of “planned economies” that were adopted after the fall of the Berlin Wall.
In a recent research note, he said the ratio between employee compensation to gross domestic product in the U.S. is the lowest in history and corporate profits are at their highest-ever point. This, he believes, is a key reason why U.S. citizens now want anything but the traditional establishment.