Skip to comments.[France's] Hollande Converts, Proposes Austerity and Lower Taxes To Boost Growth in France
Posted on 01/19/2014 5:34:27 PM PST by Lorianne
The policy battle of the last six years has been over how governments should respond to the recession that swept most of the globe, the slow growth that followed, and high unemployment. One camp argued for immediate large increases in government spending financed by borrowing, followed early in the recovery by higher taxes on the rich. The other recommended decreased government spending paired with tax cuts and increased labor market flexibility. For the most part, the first camp has carried the day, with governments around the world first reaching record budget deficits and then passing tax increases on high earners. However, this week in a major sea change on the policy battlefield, President Hollande of France announced a conversion.
François Hollande is not just the President of France; he is a socialist who had until this week campaigned boldly on a platform defending government spending, maintaining social benefits, and high taxes on the wealthy. France has the highest ratio of government spending to GDP of any developed economy, at 57 percent. So when President Hollande announced he now wanted tax cuts on businesses and cuts in government spending, the news caused tremors throughout the world of economic policy makers.
Even more devastating for those pushing for more government spending as the solution, President Hollande specifically said that only businesses could create jobs and revive growth. Somewhere, Paul Krugman probably cried.
(Excerpt) Read more at forbes.com ...
Hollande? Austerity? That must mean one woman at a time.
This kind of stuff can make one crazy, apparently even libturds.
Blackmail. It’s the only explanation for a socialist french president to openly discuss reduced spending and taxes.
No, no conversion. When hearing the words of French President François Hollande: And how can we redistribute if theres no wealth? one realizes he’s simply worried about the health of the golden goose.
Hollende has finally recognized that jobs exist to fund the gov't, but need to be nurtured rather than flogged to death.
“That must mean one woman at a time.”
HA! Great minds think alike. I was going to say M. Hollande needs to make up his mind...about a few things!
Must have been chilly...
Or, in some way exciting....
what happened to the 75% income tax
why are men so folking stupid
Most are down wid dat.....
There are multiple brains...
Radical cuts in spending at every level of government combined with repeals of regulations that stand against new, small businesses and property rights are needed. The deadwood must be cut (i.e., big layoffs are necessary). Traditional freedoms should also be respected (morale). It’s the only practical and moral way to raise real revenues. It would also require much patience.
Otherwise, the slowdown and shrinkage will soon enforce discipline in leadership. Can’t get anywhere by beating a dead workhorse. Money of real value doesn’t grow on debt trees, and growing real prosperity takes time. Begin to respect men at work again.
LOL, yes, exactly!
“Maduro Reassures Venezuelans: “I’m A Socialist And I Know What I Am Doing””
Or pimples. It’s awfully hard to tell.