Most Popular
1. THE INFLATION MONSTER is Forecasting RECESSION - Nadeem_Walayat
2.Why APPLE Could CRASH the Stock Market! - Nadeem_Walayat
3.The Stocks Stealth BEAR Market - Nadeem_Walayat
4.Inflation, Commodities and Interest Rates : Paradigm Shifts in Macrotrends - Rambus_Chartology
5.Stock Market in the Eye of the Storm, Visualising AI Tech Stocks Buying Levels - Nadeem_Walayat
6.AI Tech Stocks Earnings BloodBath Buying Opportunity - Nadeem_Walayat
7.PPT HALTS STOCK MARKET CRASH ahead of Fed May Interest Rate Hike Meeting - Nadeem_Walayat
8.50 Small Cap Growth Stocks Analysis to CAPITALISE on the Stock Market Inflation -Nadeem_Walayat
9.WE HAVE NO CHOICE BUT TO INVEST IN STOCKS AND HOUSING MARKET - Nadeem_Walayat
10.Apple and Microsoft Nuts Are About to CRACK and Send Stock Market Sharply Lower - Nadeem_Walayat
Last 7 days
Have US Bonds Bottomed? - 27th June 22
Gold Junior Miners: A Bearish Push Is Coming to Move Them Lower - 27th June 22
Stock Market Watching Out - 27th June 22
The NEXT BIG EMPIRE WILL BE..... CANZUK - 25th June 22
Who (or What) Is Really in Charge of Bitcoin's Price Swings? - 25th June 22
Crude Oil Price Forecast - Trend Breaks Downward – Rejecting The $120 Level - 25th June 22
Everyone and their Grandma is Expecting a Big Stocks Bear Market Rally - 23rd June 22
The Fed’s Hawkish Bite Left Its Mark on the S&P 500 Stocks - 23rd June 22
No Dodging the Stock Market Bullet - 23rd June 22
How To Set Up A Business To Better Manage In The Free Market - 23rd June 22
Why Are Precious Metals Considered A Good Investment? Find Out Here - 23rd June 22
UK House Prices and the Inflation Mega-trend - 22nd June 22
Sportsbook Betting Reviews: How to Choose a Sportsbook- 22nd June 22
Looking to buy Cannabis Stocks? - 22nd June 22
UK House Prices Momentum Forecast - 21st June 22
The Fed is Incompetent - Beware the Dancing Market Puppet - 21st June 22
US Economy Headed for a Hard Landing - 21st June 22
How to Invest in EU - New Opportunities Uncovered - 21st June 22
How To Protect Your Assets During Inflation - 21st June 22
AI Tech Stocks Current State, Is AMAZON a Dying Tech Giant? - 20th June 22
Gold/Gold miners fundamental checkup - 20th June 22
Personal Finance Tips: How To Get Out Of A Tough Financial Situation - 20th June 22
UK House Prices Relative to GDP Growth - 19th June 22
Will Global Markets Be Pushed Deeper Into Crisis Event By The US Fed? - 19th June 22
Useful Things You Need To Know About Tweezer Top Candlestick Pattern - 19th June 22
UK House Prices Real Terms Sustainable Trend - 17th June 22
Why I’m buying the “new” value stocks… - 17th June 22
Optimize Benefits from R&D in Software Product Development with an R&D Tax Credit Software - 17th June 22
Want To Save On Your Business Energy? Here Are Some Helpful Tips - 17th June 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

France Being Wrecked by Socialism, Nationalism and Germanophobia

Politics / France Jul 01, 2013 - 06:45 AM GMT

By: LewRockwell

Politics

Eric Margolis writes: Nice, France – I’m just down to sea level from the 2,600 meter high mountain forts on France’s wild, vertiginous Alpine border with Italy.

The Cote d’Azur, or Riviera, is buzzing with summer activity: packed beaches, traffic jams, crowded restaurants, outrageously priced hotels and an armada of yachts jostling for scarce marina space.


Looking at all this opulence and conspicuous consumption one would not know that France is plunged these days into economic and mental depression. French call it "morosité."

French are an excitable people. They often strike me as an unstable mix of Germans and Italians. When French spirits are high, they are unstoppable. Just think of Napoleon’s armies and the "furia francese." But French morale can sink just as fast. Today, France’s spirits are down in the dumps.

Other nations would be lucky to have such problems. In spite of uncontrollable debt, high unemployment, strikes, and declining industry, bountiful France is still one of the world’s most beautiful nations and best places to live.

French have one of the world’s best, most responsive health care services. Its food, wine and culture astound and delight. TGV high-speed trains zip through the beautiful countryside. Unlike much of western Europe, France is a large nation with varied topography, and distinctive regions. Some 75% of French spend their lavish, six-week vacations in their own country.

French still read books, study history, and, for the most part, eat real food. Never mind all those silly academic studies that tell you Auckland, New Zealand is the best place to live, France is the world’s premier destination and place to live.

Now, the bad news. Glorious, beautiful, well-run France may be facing the end of its "bel époque." French industry has been ruined by overly powerful unions and their political allies in the Socialist Party.

One would be crazy these days to open a factory in France with its absurd 35-hour work week, endless vacations, surly unions, strikes, and social costs that add 50% to worker’s salaries. Laying off workers during downturns or closing plants involves siege warfare, with posturing socialist politicians fighting employers at every turn.

In an ominous new development, French have taken to comparing their economic malaise to Germany’s vibrant economy where past tough structural reforms in the labor market modernized and made its industry competitive.

Thanks to German’s intelligent system of vocational training for youth, its youngsters are at work while 45% of young French are unemployed. No wonder. French universities keep churning out unemployable graduates in social anthropology, sociology, and film-making.

Government in France employs 56% of all workers, an unsustainable cost that, with retirement at 60 and unemployment benefits – now 32% of GDP – is bleeding the economy to death. Even President Francois Holland’s recent tax increases will not save the economy from ruin – and France from a possible euro crisis.

The problem is that many French know their gravy train must slow down but they can’t bear to change. "La vie en rose" is just too seductive. Special interests – farmers, teachers, truckers, transport unions – demand the "rich" pay the bill. They can shut down France.

But there are not enough "rich" to foot France’s big bills – or America’s, for that matter. Many wealthy French are moving out of the country, like Gerard Depardieu, or quietly moving assets to more friendly locales. French fear that the desperate socialists will slap more and higher taxes on citizens and even on foreign residents. Louis XVI had similar cash problems.

France’s media is full of alarms all about how the industrious Germans are pulling way ahead, as if Germans were somehow a threat to France. This is potentially a very dangerous notion. The Franco-German entente is the rock upon which united Europe is built. Nothing must be allowed to endanger this architecture – particularly not envy, nationalism, and blaming the Teutons for France’s self-inflicted wounds.

What France urgently needs is another Charles De Gaulle who had the courage and strength to end the bitter war in Algeria in 1962 and bring stable government. A new De Gaulle must force drastic cuts in social welfare and spending, and force French to learn a new work ethic.

Eric Margolis [send him mail] is contributing foreign editor for Sun National Media Canada. He is the author of War at the Top of the World and the new book, American Raj: Liberation or Domination?: Resolving the Conflict Between the West and the Muslim World. See his website.

Copyright © 2013 Eric Margolis

http://www.lewrockwell.com

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in