- 14 Feb 2022 10:33
#15212132
France is in economic trouble because of the Eurozone, namely because of how the Eurozone functions. Germany, as the strongest economy, has very low wages relative to the productivity, thus competing everybody else into the ground.
It was no problem in the past. The deutschmark would have low inflation while for example the italian Lira had very high inflation. That meant the difference got constantly compensated. Germans with their low inflation currency would have relatively high income, Italians with their high inflation currency relatively low income. German products would be expensive, and italian products would be cheap.
Now this mechanism was removed - with no compensation for it. Germans, not used to ask for wage raises this often, get lower and lower wages, german products get cheaper and cheaper, while on the other hand italian work and products get more expensive.
This happends all over the Eurozone. Germany, to a lesser extend Austria, and the bank state Luxembourg prosper, while everyone else accumulates more and more debt.
France, being the economically second strongest country of the Eurozone, is hit less by the problems than for example Greece or Italy or Spain. But its still getting hit. They just cannot have the low wages the Germans have, because french people are rebellious and will fight for fair wages. As a consequence France is also getting deindustrialized, even if less so than others.
This is their current core problem of their economy, with no solution in sight.
Discussing things like how much of the economy is directly controlled by the state is pretty meaningless, in comparison. Attributing their current state to the fact that large parts of their economy is owned by the state is simply absurd. This is not the dominant factor of their current economy.
Controlling larger parts of the economy is a good tool for a benevolent government, if such a beast still exists in the west, to assert people get good wages and a good share of the wealth their society produces.
I dont think over 60% is necessary though. Sweden does the same with around 30%.
There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning. - Warren Buffett