Wednesday, June 19, 2019
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This economic mistake that we must leave to rebound!

The correct diagnosis must be made to enable sick France to heal well. Unfortunately, the remedies applied are, so far, ineffective.

By Xavier Fontanet.

It's good to start from facts, especially in a country like ours where we take pleasure in ideas. But a sum of findings will never make a policy, it will lead to patching problems without actually addressing their causes. Emerge from the Great National Debate the idea that behind our excessive taxation hides an unreasonable increase in our public sphere.

Still behind, a conceptual error of some of our economists who explained, for forty years, that public spending stimulated the economy, justifying "ever more" in the election promises. An economist can, alas, as surely kill an economy as a doctor his patient if he makes a mistake of diagnosis.

For fifty years, the world has changed, it has become competitive, and in a competitive world, you have to be competitive. Competitiveness is no longer just that of the private sphere, it is the consolidated competitiveness (private / public) because the public costs are in the cost of our companies. We must put things back on the ground and begin by redefining the missions of the public sphere.

A sort of Pact law for the public sector, aimed at refocusing on the regalien – leaves aside the fact that it reinforces some parts. In the social field, which alone accounts for 60% of all, we will not avoid a serious adjustment of parameters, such as working time consolidated over a lifetime, as well as conditions governing unemployment benefits … which appear as one of the causes of the latter.

Finally, there is the question of Colbertism, which has piled up cost strata in the regional sphere, diluting responsibilities and making decisions more complex. In this case, we have a chance: several countries like Canada, New Zealand or Germany have made spectacular reversals, each bringing their public sphere from 56 to 44% of GDP over a period of ten to twelve years. Each time, their savings are distributed. It's simple, why not do like them?

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