FRANCE is still France – and that, tragically, is why that great country and its wonderful people are doomed to decline further this year, and why even more successful French business folk, entrepreneurs and professionals will move to London over the next 12 months. While many other countries are recovering strongly, France is sinking again, its economy shrinking at an accelerating rate. I was born and grew up in France and so feel especially strongly about its catastrophic misgovernment.
Its composite purchasing managers’ index (PMI) fell from 48.0 in November to just 47.3 in December (a number below 50 signals contraction; above that expansion). France’s key services sector’s activity index fell to a six-month low. By contrast, Spain is bouncing back, Germany is growing strongly, Ireland is buoyant and the Eurozone as a whole’s composite PMI increased from a reading of 51.7 in November to 52.1 in December. Of the big economies, only Italy and France are spiraling downwards again.
France’s economic sickness is primarily due to its overbearing state, horrendously high tax levels, insane regulations, absurd levels of inefficient public spending and generalized hatred of commerce, capitalism, success and hard work…
Left to their devices, of course government workers and leaders will do what leads to temporarily greater power and wealth for themselves, at the expense of the nation-at-large. Adam Smith was correct in his observation that people pursue what is in their own self-interest, and that includes those who are given power. History shows this continues… until… you have a wealthy and politically-connected few who rule, and a mass of poor people who barely scrape by.
This is the way of much of the world, and is in our future if we keep moving in the direction Washington DC has targeted—both Republicans and Democrats. Power must be retrieved from the Federal government quickly, or we will be raising decaying white flags, just like France.