Looks like the Occupy agenda just landed at Charles de Gaulle. As someone interested in economic policy, it will be fascinating to watch the natural economic experiment apparently about to be tried in France. Socialist Francois Hollande says he wants to crank up marginal tax rates, make public pensions more generous, and go after the banks. Non to austerity and non to neoliberalism, at least to the extent that France tried to embrace market-friendly policies under Nicolas Sarkozy.
Reminder: In 1980, France’s per capita GDP was 78% of America’s vs. 69% for the UK. In 2008, France was down to 71% vs. 77% for the UK. Hollande bills himself as a sort of Mr. Normal, promising the French version of a “return to normalcy.” Well, the normal way of doing things in France hasn’t work in a long, long time.
My guess is that if France really goes back down the Grand Delusion path Hollande has outlined, the French economy will be punished severely by global markets and economic reality.