As France slides deeper into recession, Public
confidence in Hollande slides.
unhappy with president François Hollande's overall performance.
trust government to cut debt
think Hollande can find a solution to the eurozone crisis.
However, people are happy with free money. They approve Hollande's
reducing the retirement age to 60, from 62, for some workers.
Lowering retirement age may make the affected workers happy, but the policy
is economic folly in the face of increasing lifespans.
Moreover, those poll numbers are 100% guaranteed to get worse as Hollande is doing all the wrong things economically such
as raising income taxes and supporting financial transaction taxes. Hollande's job proposals are even worse.
War over Peugeot
The Financial Times also notes France’s powerful CGT union has promised
“war” in September over the closure of Peugeot’s carmaking plant at Aulnay near
Peugeot fired 8,000 workers and that has both the unions and Hollande howling. For more details, please see Car Maker
Peugeot to Cut 8,000 Jobs, Close Plant; Shape of Things to Come.
The union "war" will further pressure Hollande
to follow through with his Economically
Insane Proposal: "Make Layoffs So Expensive For Companies That It's Not
This is how I described the proposal in the preceding link:
Four Things, All of Them Bad
layoffs will occur before the law passes.
will move any jobs they can overseas.
if it's difficult to fire people, companies will not hire them in the first
profits will collapse along with the stock market should the need to fire
The proposal to force companies to sell plants rather than fire workers as
outlined by Industry Minister Arnaud Montebourg and
Labour Minister Michel Sapin
is nothing short of economic insanity.
Government Spending Over Half of French GDP
In Quick Facts
Heritage says "Government spending has increased to a level
equivalent to 55 percent of total domestic output. The deficit remains more
than 6 percent of GDP, pushing public debt up to more than 80 percent of GDP."
Unemployment will Rise, GDP will Sink
In a recent panel discussion in Spain, Paul Krugman said he would start to worry when government
spending is over 50% of GDP. France is already there.
As Hollande steers France further into the gutter,
French unemployment (already over 10%) is bound to rise and GDP will sink.
Krugman's cure? More government spending of course