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7. November 2010, 09:42:14
Übergeek 바둑이 
Subject: France
As I understand it, the current problems in France arose from policy decisions made in the early 1990s. Back in 1991-1992 the world experienced a massive recession (brought about by Reaganomics and the end fo the Cold War). Back then France experience two problems: high unemployment and a decreasing birth rate. In order to counteract those two problems, the French government decided to enact laws that would allow for lower unemployment and a growth in the population (seen as necessary to maintain economic growth):

1. Increasing maternity leave, paternity leave and other parental benefits when a couple has a child. France brought in what is one of the most generous parenting leave systems in the world.

2. Stimulate population and econmic growth through an increase in immigration. This saw an influx of immigrants from former French-speaking colonies, particularly from Africa.

3. A decrease in the retirement age so that yonger workers would have greater opportunities to find work, while the aging population would enjoy the benefits of an earlier retirement.

4. A decrease in the statutory working hours (a shorter work week) in order to help increase the number of available jobs per capita. France could afford to do this because France has the highest productivity per hour of all G8 nations.

These solutions worked well to some extent. France achieved what no other Western European country had been able to do. France increased its birth rate and saw a healthy growth in its population. In fact, since 2003 France's population growth has accounted for all "natural" population growth in the European Union. While other European Union countries have negative population growth, France achieved a positive population growth.

As the population has grown, a recession has taken hold in the European Union. This has meant that the employment rate has decreased and as unemployment rose, marginalized segments of the population saw themselves experiencing high unemployment. If any of you recalls, this led to rioting among North African immigrants.

The recession has also meant that the government has experienced a shortfall in taxation revenue. In order to account for the deficit, the govenment has tried to mdify some of the benefits that the population has received. The government has tried unsuccessfully to increase the working hours per week, and to raise the retirement age. In backtracking from policies of the past, the government has alienated the population and this has led to the strikes that we saw in the last few months.

To say that France is a "total disaster" is a reflection of a lack of understanding of the French economy. After all, France still is the 5th largest economy in the world. France is also the smallest emitter of carbon dioxide among industrialized nations. About 80% of France's electricity is generated by nuclear plants. France is one of the most technologically advanced countries in the world. Like any other country, it has its problems, but it is far from being a disaster.

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