Posted Jan 19, 2016 by Martin Armstrong
President Francois Hollande has publicly stated that the French economy is now in a state of “economic emergency.” He set out a €2bn job creation scheme in a desperate attempt to lift France out of an economic death spiral created by his socialistic policies that have raised taxes and chased out those who create wealth and jobs.
Hollande’s scheme, he proposes, will be a two-year plan where firms with less than 250 staff will get subsidies if they take on young or unemployed persons for six months or more. In addition, Hollande says he will create 500,000 vocational training courses, but that is pointless without firms hiring.
France’s unemployment rate is officially 10.6%, compared to a European Union average of 9.8%, and 4.2% in Germany. However, these numbers are modest and do not properly reflect the students who cannot get a job to start with. He also says that this program will be paid “without any new taxes of any kind.” I suppose he is finally realizing that raising taxes shrinks the private sector and that means less jobs are available.