François Hollande wins in France

In a personal opinion I think this is a win for France because now they have someone actually helping out the common man. YAY FOR SOCIALISM!

You didn't refute anything. You didn't challenge any of my assertions. I agree that France is one of the world's largest economies and that it's experienced positive economic growth in the past. It also holds vast quantities of unstable debt, from Greece, Italy, and Spain, and has recently seen a decline in consumer spending. France has either the highest or almost highest labor costs in all of Europe, and that's before Hollande starts changing things. For France, economic competitiveness and stabilizing the Eurozone are key concerns for its economic future, and Hollande has not promised to do a whole hell of a lot about either.

Instead, he's campaigned on a populist platform of expanding the public sector, and hiking taxes on business and the wealthy. Expanding the public sector should increase consumption, but he's funding it with taxes on business and the wealthy, which is why it doesn't do anyone any good. Now, if he could shore up French competitiveness while taxing business, then he might be okay, but he, again, campaigned on a populist agenda which will increase labor costs and ignore structural reforms.

Rejecting austerity, while reasonable domestically, undercuts the EU's ability to solve the debt crises in the lynchpin economies of Italy, Spain, and Greece, which as I previously mentioned, have a major portion of their debt held by French banks. Hollande is treating the situation like it's a French one, when the reality of the matter is that it's a European one. Considering the sheer volume of FDI in France, it's not exactly confidence-instilling to see that in the French leader, and I fully expect the markets to reflect that sentiment if he actually follows through on his campaign promises.

Reposting:



It's happening.

Yes, labor costs are high, but that is a problem in all of Europe since we have a high standard of living and don not allow our companies to pay 2€/hour wages like other uncivilsed countries. I think you can guess what country I mean by that. And despite this outrageous high costs, only 9% of French are unemployed (1% more than in the US, 5.7% in Germany[without a general minimum wage]). France has recovered extremely good from the "Euro-crisis", BECAUSE high consumer spending. And it declined, yes, by 0.1 point since last November. Seriously, if that is THE big deal in your argument, you should reconsider.
Fact is, the big problem France has is youth unemployment. How do you solve that? Well creating jobs. Now, you can do the american way, and cut taxes for the rich and hope they will do "the right thing". But we know, thats not how "they" work. Taxing the richest of the richest, and investing that money in programs to create jobs, and yes, the public sector, the evil hell hole of the capitalist world, does create jobs, is the right way to go. But I can see you rage right now, because public jobs are so inefficient, and will drive a country into oblivion. Except it doesn't. Germany is the best example. We have a vast public sector, our government intervenes in the free market over and over again, and it works!
Also, the Greece debt is covered by the EU as a whole, with Germany having the biggest part of the "pie". (over 25%)

Every politician campaigns on a populist agenda. If they weren't they wouldn't get elected, because they weren't popular oO

Thats right, because in a economical crisis where the economy is in recession, you have to excercise austerity. Oo
Thats BS, in crisis and recession, you fuel the economy with investments, to get it going. That is why I think the way the EU demands the Greeks to cut spending is totally wrong. They will starve themselves to death. So, if the French economy is in decline, as you hinted by mentioning the decrease in consumer spending, the WORST thing to do is to cut spending.... Basic economy 101.

So perhaps we can see more capable parties in America rather than Republican and Democrat?

Perhaps not, but it does have an eye opener.

Now we must hope the left front wins enough seats to force a alliance between the communists and the social democrats so we can have super happy times.

But France needs someone like Herman Cain! Now I don't wish to overwhelm you with all this data, but 999 is good for the people.

As I said, socialism is bad. When a government totally intervenes in a market it upsets the dynamics of a government and causes inefficiencies. Listen to Ronald Reagan, he makes a lot of sense:

No offense, bro, but no one attempted

Thanks man. Now I've got tea all over my keyboard.

Oh boy, Reaganomics FTW

Oh dear, did you spill your tea? I am terribly sorry if it was my fault.

Agreed!

Not to that degree it isn't.

Sarcasm dude....

How are you so sure?

Mustachio is right

You do realize that Reagan both increased the size of the government and created a national debt, right?
As well, his policies didn't really help unemployment.

socialism =/= government intervention.

Cutting taxes and spending more money, does not make a country well.

But he just increased it on the military to fight the USSR. If he had the time to wait for the USSR's demise which actually happened during Bush Sr.'s term then the military could be cut and be affordable.