Posted Oct 14, 2013 by Martin Armstrong
The French Solution – if it does not make a profit or is dysfunctional, then Nationalize it. The French car-maker is broke once again and France is considering nationalization defying as always the Business Cycle. I was called in by one of the Top 10 French companies in Germany. This is how government should be barred from any such interference. The company wanted to reduce its work force by about 25%. The government initially said fine. Then at the last-minute they said it was not fair for the company to pick and choose. They ordered the company to make the offer to everyone. The deal was they would receive a buy-out. Human nature then took over and the best people who knew they could get another job took more than 100k and ran out the door. The company lost the best people and was stuck with the unproductive. This is how government ensures the inefficiency of such enterprises.