The Collective Suicide That is France

by Crocker on May 8, 2012, 7:32 am

in Economics,Politics

Well, the French have drunk the Kool-Aide. They elected a hard-left, no-holds-barred Socialist who’s planned a war on the “rich”, an assault on financial markets in Paris and London and surrender of French sovereignty to the Eurocrats in Brussels. As Nick Woods writes in the Daily Mail, it “can only end in tears”:

In Paris, Hollande comes to power on a tax and spend agenda that is already spooking the markets and posing a serious threat to the German-led effort through the Fiscal Pact to stabilise the euro.

France’s national debt is 86 per cent of GDP (Britain’s is 63 per cent) and unemployment at 2.9 million is one million higher than 2007 when ousted President Nicolas Sarkozy was first elected.

State spending as a share of GDP is an eye-watering 56 per cent, the highest in Europe, and significantly more than even Gordon Brown racked up at 48 per cent with his stealthy drive for a UK client state, in which just about everyone becomes dependent on the largesse of their political masters.

Yet Hollande, elected on a platform of growth not austerity, plans a spending splurge of the kind that left-wing Labour leader Foot advanced in vain in 1983 – the Labour manifesto derided as the “longest suicide note in history”.

He wants a 25 per cent increase in child subsidies paid to parents, a reduction in the retirement age from 62 to 60, 60,000 more teachers, a minimum wage of £1400 a month and a three-month freeze on the price of petrol.

How will he pay for it? Higher taxes. Income tax increases for the middle classes are planned and those earning over £810,000 a year will face the highest tax rate in Europe – 75 per cent.

He hates financial markets, which he identifies with “Anglo-Saxonism”. And he has already directly threatened the City of London.

Welcome to unreality.

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