Foreign and Defense Policy, Europe and Russia

Occupy France

Looks like the Occupy agenda just landed at Charles de Gaulle. As someone interested in economic policy, it will be fascinating to watch the natural economic experiment apparently about to be tried in France. Socialist Francois Hollande says he wants to crank up marginal tax rates, make public pensions more generous, and go after the banks. Non to austerity and non to neoliberalism, at least to the extent that France tried to embrace market-friendly policies under Nicolas Sarkozy.

Reminder: In 1980, France’s per capita GDP was 78% of America’s vs. 69% for the UK. In 2008, France was down to 71% vs. 77% for the UK. Hollande bills himself as a sort of Mr. Normal, promising the French version of a “return to normalcy.” Well, the normal way of doing things in France hasn’t work in a long, long time.

My guess is that if France really goes back down the Grand Delusion path Hollande has outlined, the French economy will be punished severely by global markets and economic reality.

6 thoughts on “Occupy France

  1. Of interest to me was that he had the support of the Muslim population. Also, I note how quickly Obama invited him to the White House. I would make a campaign ad out of those two items, myself.

  2. The beloved totalitarian economist Keynes proposed that capital can be made non-scarce, that is, there could be enough capital (machines) to produce good for all human wants within say 20 years, under proper government management.

    Karl Marx (1818-1883) proposed the same thing. The capitalists had built wonderful machines. The proletariat (common man) could take over the machines (the means of production) and live great lives by pushing the buttons. The capitalists had made themselves superfluous, and there was no need to deliver profits (incomes) to them.

    Karl Marx was wrong about the industrial production of 1860, but has been shown to be correct about our current society. If we adopt the policies of Marx and Keynes, we will certainly achieve the 1860′s standard of living without much effort and under the administration of fair and thoughtful government bureaucracies.

  3. Unless he makes a U-turn the way Fujimori did in Peru in the nineties, he will have to relearn Maggie Thatcher’s dictum that “sooner or later, you run out of other people’s money.” The Greeks obviously have not as yet, so I am not holding my breath. Maybe this is the job for the next generation who will have suffered a sufficient drop in standards of living to finally wake up and smell the coffee.

  4. You fools are ranting on what Hollande might do without anything based on what actually happened. Get real and grow up guys.

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