You can’t tax and spend and divide your way to growth. Monday’s slump in French stock prices, rise in French bond yields, and drop in the Euro as measured against the dollar are all signs that the market has no confidence in either Mr. Hollande’s proposals or his tone. The proposals — hire 60,000 more government-employed teachers, raise taxes to 75% on anyone earning more than 1 million Euros a year, or about $1.3 million — amount to taxing and spending. They stem from an ideology that, for all the hopeful chatter in the press about Mr. Hollande’s supposed moderation, is a career politician’s hostility to private sector success. Frédéric Filloux wrote, “the new president claimed ‘[he] doesn’t like rich people’ (a few years ago, he assigned a threshold of wealth to the equivalent of $60,000 a year).” Good luck constructing a “growth dimension” with that attitude.But the real rejection of Sarkozy isn't because the French really wanted a socialist; the French just wanted to get rid of the fake conservative.
Voters punish conservatives who don’t deliver. As the Wall Street Journal put it in an editorial, “Mr. Sarkozy and his government responded by raising sales and capital-gains taxes, demonizing successful French businessmen, complaining that Germans work too hard, urging an international financial-transactions tax and trying to pin much of the blame for economic troubles on immigrants.” Bloomberg Businessweek reports on a survey it said “showed that 73 percent of Hollande voters supported him because they wanted to punish Sarkozy. Only 44 percent said they agreed with the Socialist candidate’s ideas.”
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In America we have the exact same problem - the Republican Party isn't conservative, the Republican Party stands for absolutely nothing and the Republican Party absolutely embraces big government, higher taxes, more debt and statism.
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