10.20.2004
Who woulda thunkit?
Wake up call for French way of life
A couple of days ago, I posted this article. It spurred some impassioned debate between two well-read American posters and an un-met friend from Holland. The premise of the post concerned the state of malaise within the EU economy.
International Herald Tribune writer Katrin Bennhold zeroes in on a particularly bleak picture of France's prospects, courtesy of a recent study performed by Michel Camdessus, former head of the International Monetary Fund.
Sarkozy may run for President of France in 2007.
What the report would seem to clearly indicate are the ultimate ends of a lax, otiose "socialist system of plenty." As my granddaddy always said, "son there is no free lunch." I don't know why anyone, let alone entire countries, would ever believe otherwise.
Wake up call for French way of life
A couple of days ago, I posted this article. It spurred some impassioned debate between two well-read American posters and an un-met friend from Holland. The premise of the post concerned the state of malaise within the EU economy.
International Herald Tribune writer Katrin Bennhold zeroes in on a particularly bleak picture of France's prospects, courtesy of a recent study performed by Michel Camdessus, former head of the International Monetary Fund.
Attacking France's 35-hour workweek and high minimum wages, Camdessus warned that if the government did not act, the effects of an aging population would be enough to trim the economy's growth potential from an annual 2.25 percent to 1.75 percent over the next decade.
France, Camdessus said, must cut its "work deficit." "We are surreptitiously engaged in a process of stagnation," Camdessus wrote in the report. "If nothing is done to overcome the pernicious phenomena that we have observed, in about 10 years it will lead to an irreversible situation."
Economic growth in France has lagged that of the United States on average by one percentage point every year over the past decade, as a combination of the shortened workweek, high unemployment and early retirement curbed the amount of time the French spend at work.
And as people live longer, the state-funded health and retirement systems are coming under increasing strain.
* * * *
He suggested that the French government allow companies and workers to agree to individual overtime rules, reduce the rate at which the minimum wage increases, and permit retired people to work while receiving a pension.
* * * *
"I identify with this report because it makes three key points: It is urgent to carry out reforms in our country, reforms are not to be considered a punishment, and the number of state employees can be reduced in exchange for productivity gains," French Finance Minister Nicolas Sarkozy said.
Sarkozy may run for President of France in 2007.
"We've had reports like that for 20 years, and for 20 years they've been put in the drawer," said Marc Touati, chief economist at Natexis Banque Populaire in Paris.
* * * *
Sarkozy, who plans to quit the government at the end of next month to head the ruling party, commissioned the report in May, saying "this weakness of growth, which is affects the euro zone as a whole, has boosted unemployment and undermined public finances. . . . This situation reflects certainly the ups and downs of growth, but I believe it also shows the limit of our growth model at a moment when other areas of the world are showing an impressive economic dynamism," Sarkozy said.
What the report would seem to clearly indicate are the ultimate ends of a lax, otiose "socialist system of plenty." As my granddaddy always said, "son there is no free lunch." I don't know why anyone, let alone entire countries, would ever believe otherwise.
Comments:
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There is no shortage of such studies regarding the more thoroughly socialist European countries. The current issue of the Economist, available free on-line, has an article on the reforms that will be necessary in the public pension system of Great Britain. Germany and Italy are in somewhat similar situations. Some small-scale reforms are already underway in Germany, but they are only the first baby-steps in a long, difficult, but inevitable process. This is a stark example of why, in this country, we should be very wary of each proposed expansion of social "entitlements." Once they are in place, it is very difficult politically to take them back again.
Publius
Publius
"Publius"
(has a very nice ring to it! alas, I've seen it more than once...a person with your breadth of knowledge and opinion, I am confident, may wish to search further for a nom de guerre...however, I reiterate it is a fine pen name!)
Your comments are DEEPLY appreciated, Publius. I read the Economist from time to time (not often enough); it is an excellent, 'worldly publication', not to be taken lightly.
Americans don't pay enough attention to the long-standing socialist experiment in Europe -- we seem to perpetually wake up to a new day here, and are thus susceptible to sliding down the slippery slope. Even W slip-slides in gargantuan proportion: education and prescription drugs - Big-time HUGE spending/entitlement endeavors.
I'm going to keep my eye open for the European economic articles -- they seem to catch your attention, as well as other's. I invited Jan to post his comments; I hope he returns, because he is 'over there', and I especially enjoy his reparte.
(has a very nice ring to it! alas, I've seen it more than once...a person with your breadth of knowledge and opinion, I am confident, may wish to search further for a nom de guerre...however, I reiterate it is a fine pen name!)
Your comments are DEEPLY appreciated, Publius. I read the Economist from time to time (not often enough); it is an excellent, 'worldly publication', not to be taken lightly.
Americans don't pay enough attention to the long-standing socialist experiment in Europe -- we seem to perpetually wake up to a new day here, and are thus susceptible to sliding down the slippery slope. Even W slip-slides in gargantuan proportion: education and prescription drugs - Big-time HUGE spending/entitlement endeavors.
I'm going to keep my eye open for the European economic articles -- they seem to catch your attention, as well as other's. I invited Jan to post his comments; I hope he returns, because he is 'over there', and I especially enjoy his reparte.
When I was in Sweden last summer, I was surprised to see how much they had problems with poverty and homelessness since they are this bastion of socialism. I agree I have been critical too of W's spending habits.
(PS Got your message. I adore John Wesley!!! Hope to get your link up soon. Would be interested in reading the post you've talked about).
(PS Got your message. I adore John Wesley!!! Hope to get your link up soon. Would be interested in reading the post you've talked about).
HunterByrd,
"Publius" was the pen name used by the authors of the Federalist Papers. I just stole it because it was the first thing to come to mind. As to the economist, they do issues specially devoted to specific countries from time to time, and I find these excellent because they are in depth. Some of these are available on their web site, although much of the material there is available by subscription only. I don't always agree with their conclusions, but I love the quality of the data they collect. In fact, one of may favorite parts of the magazine is the "raw" economic data they put at the back of each issue.
Publius
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"Publius" was the pen name used by the authors of the Federalist Papers. I just stole it because it was the first thing to come to mind. As to the economist, they do issues specially devoted to specific countries from time to time, and I find these excellent because they are in depth. Some of these are available on their web site, although much of the material there is available by subscription only. I don't always agree with their conclusions, but I love the quality of the data they collect. In fact, one of may favorite parts of the magazine is the "raw" economic data they put at the back of each issue.
Publius
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