How to Learn from France’s Economy—Lessons Lost on Barack Obama

We’ve been taught today that the way to economic prosperity is through higher taxes and more government intervention. If that were true, France should be among the best performing nations of the world, but that is not the case.

How about these results from one state, as written about in the Daily Signal:

…the lowest unemployment rate in the South; 2 million jobs for the first time in state history; economic growth rates nearly 50 percent higher than the national average since 2008; and six straight years of migration into the state after decades of out-migration, as families are beckoned by jobs and the prospect of a brighter economic future to come home.

How did that happen?

While Obama raised federal taxes by more than $1 trillion, we passed the largest income tax cut in state history. As a Democratic Congress rammed through trillions in new spending for Obamacare, we cut the state budget by 26 percent. And even as the EPA proposes new regulations that could decimate critical portions of our energy sector, we’ve worked to create a more predictable legal environment for energy companies in the state.

Do you know what State this is? Louisiana. Yep, surprised me, too. Pleasantly surprised.

Governor Bobby Jindal also writes,

But the most striking portrait of this Franco-American summit could be of two world leaders whose pretensions to economic knowledge vastly exceed their capacity to make smart policy choices. Take for instance Hollande’s decision to pass massive tax increases upon taking office two years ago. Last week, France’s Court of Auditors revealed that those tax increases raised only about half of their expected revenue, leaving a 14 billion euro shortfall in the French budget.

It wouldn’t be a surprise to most economists that when you tax something, you get less of it. Or, as even the new French Prime Minister, Manuel Valls, recently admitted, “Too much tax kills tax.” But this simple concept seems as foreign to Hollande as it does to Obama himself.