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.