unrest in france

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Joined: 25-03-06
Mar 25 2006 15:09
unrest in france

Admin - this post quoted in the France revolt thread here:


It’s very easy to criticise.

The French have a knack for making a mountain out of a molehill.

Now I’m not one to criticise the French, however I must speak out on their downfall. I was in Paris last week. Not referring to the miserable weather, a hurricane was brewing up. More than this, several storms, tornados and eruptions were in the horizon. How can such a well established global power suffer such humiliation internationally?

I speak, of course, of the anti-CPE demonstrations precisely, and yet, I feel that it shall come out on a much wider scale.

The French are reluctant, to say the least, to accept anything that their government is proposing. The new proposal, that encourages young workers, below the age of 26, to find a job, is this month’s excuse to demonstrate. Granted, the proposal will increase risk in the work market for these first time workers, making it easier for the employers to get rid of an employee under a CPE contract. On the other hand should the French government change their minds on this new law, these students won’t even be able to get a job.

The problem is said to lie in the power of French syndicates. The CGT & Co. are the problem. Employers find themselves unable to terminate CDI contracts without coughing up enormous compensations, as the syndicates find themselves in a more powerful position. This makes employing a very unattractive game to play. To add to this, employers must fork out close to 30% of the employee’s salary to the state should they want to employ someone, without even mentioning the employee’s own salary and to add to this his own taxes on revenue. So, what is the answer? Relocation.

It is affecting all western societies with the mighty manpower of the east working for a fraction of the price of that of the west. However, as others are sussing the system, adapting to their new markets, france are falling behind. The state is in debt and cheaper work is offered elsewhere. The answer is not to up taxes thus actually inciting more relocation. Keynes always believed that it was only by injecting money into the economy, that growth would happen, but the French have no money to spend. They’ve only just managed to stay inside the €uro criteria by modifying the way to calculate debt on public spending.

It is a sticky situation. The numbers are against them, the foreigners are against them, and their own people are against them, but desperate times call for desperate measures.

The system I propose is purely theoretical. By lowering employer and employee taxes this will generate a more attractive factor against relocation as well as stimulating consumption. With consumption comes bigger profits, which shall either go into employee’s pockets, thus further strengthening consumption, be dished out as dividends to shareholders and eventually being put back into circulation, or be invested and create innovations or increase productivity. This will permit to lower prices, thus once again stimulating consumption and upping production. As a result of this, france will seem more attractive, more companies will feel the need to invest there. Money will flow into the country. More jobs will be created due to the up in demand. All this will ensure that the youth shall be offered jobs without even having to get up off their backsides.

Simple as it may sound, the system may not be effective should it be acted out. However, one thing remains indispensable: French students should not demonstrate, they should unite and together they will reinstate themselves as a major power over the world in decades to come.