Saturday, February 05, 2005

The French

Fire of Liberty

Earlier, I mentioned Europe's problem with unemployment/economic growth and their refusal to take the appropriate measures to correct the problem. The best solution to the problem is for the government to remove itself from the economy by passing tax cuts, reducing spending on the Welfare State as well as less government regulation.

A good example of such pro-active measures is the current situation in France. In France, the government is trying to extend overtime and allow workers in the private sector a maximum 48 hrs work week. Prime Minister Jean Pierre is proposing such a rule because the current work week of 35 hours has put a crimp on the French economy, which is suffering a 10 percent unemployment week. In order for the French economy to reduce this burden it has to encourage competition via greater hours. If people are able to work more hours then they make more for their business a recieve more money in their pockets. These work hrs. also allow the various stores in France to be opened throughout Sunday thus making the work week more flexable to hire more workers. The only problem is that they have to work with the French Labor Unions. If anyone knows the French Labor Unions, they know what problem the French government is facing.

No comments:

Post a Comment