What happens when you have a big government and high taxes? Just ask France!
The Telegraph today:
Today it was revealed that French borrowing costs have continued to rise as latest figures revealed the manufacturing sector underperformed even Greece. The ten-year bond yield climbed as much as 4.5 basis points on Wednesday as a gauge of activity in its manufacturing sector slipped to a seven month low, to the lowest of the eurozone’s major economies.
This is a worryingly large increase in cost.
France’s manufacturing PMI slipped to 47, lower than the flash estimate of 47.1, and below the 50 mark which separates expansion from contraction. That marks the 22nd consecutive month of contraction for factory activity in the eurozone’s second largest economy.
“This suggests that competitiveness is a key issue which the French manufacturing sector needs to address to catch up with its peers.”
How do you solve an inefficient, uncompetitive nation? You lower all taxes and decrease the size of government. It really is that simple. Make a competitive environment, and jobs will be created.
Yet France pushes on with its hate tax of 75% for top earners, leading to a mass exodus of wealthy business people and entrepreneurs from the country, who incidentally are the people who create the jobs.
This is an example of how public sector workers are generally better off in the UK due to wasteful government spending.
A recent report has concluded:
A private sector employee working full time on around the median hourly wage, would be around £1,400 a year worse off than their equivalents in the public sector. In parts of the country where premiums are highest this rises to as much as £3,200 a year.
This premium exists even before the substantially more generous public sector pensions arrangements and other factors are added to the analysis.
With a humongous healthcare expenditure in the UK, the pay differences between the private and public sector employees hurt all taxpayers.
With government spending increasing year on year, how can we seriously expect to get to grips with our debt?
I do like to take the mickey out of obama on this blog, but this really is taking the mickey! How does he expect business to create jobs from a minimum wage hike! Is he really that deluded.
This is what he tweeted earlier today:
It may raise GDP slightly but it certainly will not create more jobs.
Zero hedge has asked: ‘why not raise the minimum wage to $100?’ Surely by obama’s logic, this will create even more jobs.
The sad reality is that jobs can’t exist without profits. Except, governments seem to ignore this rule and try to look good by creating more state funded jobs. Even more, people who work for the government have realized that the best way to maintain their jobs is by being inefficient and lazy. This is because the government answer to a problem is always more government.