How can new life be put into the French economy?

Thanks Brian..... I thought it was more recent than that. I also thought that it had been proved in the UK economy on a number of occasions during the Thatcher/Blair period?? I'm probably wrong, in fact, according to my Ex wife, I always am!! ;o)))

Walter Heller said "remove the repressive effect of extremely high rates" when referring to taxation as part of the post-WW2 German recovery. Consequently Germans with an annual income of about 2,400 DM in 1950 saw marginal tax rates fall from 85% to 18% and the 'economic' miracle begin following advice from the USA who had listened to Heller. The marginal tax rate for an individual increases as income rises, in other words the percentage of tax applied to income for each tax bracket in which an individual qualifies. Here in France it is actually very high but along with other taxation lowers employee incentives to earn and spend more, which has a negative effect on the productivity and markets. Since taxes keep the government pot full they do not worry too much. However, lowering marginal taxes and other direct taxation would stimulate internal growth as people had more to spend. That would stimulate production, export markets would see if home produced products did well, if so buy them. So trade would increase, production with it and then wages, take home pay and spending. That is how Germany was a decade ago and how France could be if they pulled their fingers out starting at the top by using fiscal liberalism to free money to the people that they were used to have taken away.

In European terms, German direct and marginal taxes have been low and using production taxes on high value export goods made up for what would otherwise have been a deficit in GDP. Recently Hartz IV has changed that and taxes are going up. If Valls keeps his word here and does what his heroes Blair and Thatcher did then perhaps we may live to see France going up and passing Germany on the way down.

Mind you, I agree with the influence of the French psyche as you put it. So not entirely likely.

Kent, to give a country a boost from the bottom up you need a vast great hobnailed boot to kick it up the jacksie. At present there are only flip-flops available. If you would allow me such free licence with what you said but agreeing at the same time.

While I agree with you wholeheartedly that is just not in the french psyche at all from what I have seen thus far. Shame....and I think they will live to regret it. Lower taxes and the more you receive...some German economist said that once....

When I talk about the government giving new businesses a good start, tax wise, in order to give the country a boost from the bottom up and instead of discouraging folk from bothering to make the effort to start anything new, I guess it’s a bit like if you want to give your shop a boost; you have a sale: you lower prices - you don’t raise them.

Quintessence.

I HAVE not explained the idea of the Chateaux very well.

It is to provide an income of a different nature for the chateau owner

themselves not a renter.

It is also to another way of attracting some more wine sales.

You are suggesting that the French are lazy and therefor disinterested

in developing ....well there is laziness everywhere...is there not?

{There is some of this type of activity starting around here...pleased to

say. ......I mean new business] But the young architects would probably be happy to get something

happening for a small fee.

Small fees are better than no fees.

Of course I can not suggest that my idea would put people in work

comfortably for the whole year.

But something is better than nothing and that something lifts

the spirit and bring confidence to the area and the minds of

all who are trying.

Uk .... well some people give up restaurants because it is too

stressful.

NO need for me to take you down that path again Doreen...

Everythings great in Notting Hill Gate......

Someone sang that in the late 60s or early 70s....

which band sang that?

Things change Doreen...

Ps love the idea of start up grants?????

My job,initially was to provide an income in order to live.

I became a chef and went through some very hard times before I was

respected in the industry but having chosen my path I moved on

in a similar direction.

If I had been offered the opportunity to become a scholar I

probably would have declined as the ever changing scenery of

the challenge is exciting ....if, often painful.

Each year life becomes more complex....and so it did in UK.

We are all so different

Different pasts, different asperations and so many views on every subject.

And those who keep silent with the comfort of their secrets!

"Within my work I have find a fresh solution leaping over each boundary one by one...."

That's great, but being in a position to do it depends very much on what your job is, Barbara, some jobs simply have fixed requirements which mean you can't apply particular innovative etc solutions.

If only and yes please.....with reference to your last paragraph....and the one

before.

What is the use of politicians if there is no hope?

Hope has to come from us....the people...if we can not be inspired by the

big boys..look within ourselves and develop innovation, production and think outside

of the boxes.

Within my work I have find a fresh solution leaping over each boundary one by

one....and perhaps I am winning. Winning for me is about making a living and enjoying the process. If I can encourage others then I am very contented.

Ah yes, Hartz IV that economists outside of Germany look at in despair. France is an improving economy that is so far barely affected by Hartz whereas other economies have similar ones. The UK, for instance, still operates the Thatcher period version of mercantilism, but that was beginning to grow away from producing goods to sell outsdie the UK toward financial services. The transition has continued until the present and is exposed to high levels of competition from new competitors, just like Germany's industrial base.

However, in some countries like the UK and Germany birth rates are declining and the population, including labour force, is getting older with increasingly insufficient replacement ratios. Hence the number of immigrants for work that people are protesting against and also the part-time, short-time and zero hours contract workers. The unemployed are the 'labour reserve' which in economic terms is a necessity. However, they too are ageing. France is in a better position, birthrates (economically considered 'replacement rates') are higher. Unemployment in France is a different phenomenon altogether, more to do with not expanding manufacturing and trading sectors or finance. If this country had a visionary government who could rein in the people and begin a programme of development and expansion then France could quickly surpass Germany as the strongest European nation. There is an article in the Guardian today (http://www.theguardian.com/politics/2014/oct/10/this-way-to-brexit-what-would-happen-if-britain-left-eu) in which the deputy leader of Ukip, Paul Nuttall speaks of replacing the economic aspects of EU membership with “a simple free trade deal, either with individual countries or with the European Union as a whole”. The EU has explained that it is not that simple, the UK would be like the four associated countries, Iceland, Liechtenstein, Norway and Switzerland and three micro-states, Monaco, San Marino, and the Vatican, are bound by EU regulations in order to trade with them. The EU laws apply to them. The UK will not accept that it would be the same for them. France has several times tried to remind the UK that the regulations would apply whether trading with individual countries or the EU and consequently made it clear that Anglo-French trade would effectively have to end if the UK did not accept that. One economist in the UK jokingly said that the 'Brexit' would mean £30 for a bottle of plonk. That is not as silly as it seems. France is one of the countries that holds the aces.

Like it or not, Germany and the UK have both had their day, are in industrial decline with small labour forces and large reserves that are ageing faster than being replaced as the Telegraph graphic shows and will have serious problems catching up again. If the UK leaves the UK, what politicians certainly know but will not say, is that that would in fact be the boost some countries need because the UK's trading status inside the union would change far more than the 'we will continue to trade with Europe' brigade. There will be new tariffs and taxes as other nations trading into the EU pay. If France picked up its production, innovation and development then traded in the UK's place within the EU then the growth here would be terrific. Birthrates have picked up recently, may well continue to do so as unemployment keeps women at home more. The shortfalls in schools and teachers plus the standard of technical higher education will need to be addressed to prepare the future labour force for highly skill jobs but it can be done. However, where are the politicians with that kind of vision?

Interesting article in today's Torygraph (reproduced in Le Monde, which is where I saw it - here's the DT link http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/1...

German model is ruinous for Germany, and deadly for Europe

France may look like the sick man of Europe, but Germany’s woes run deeper, rooted in mercantilist dogma

My two as well, their books ain't that way...

"Check out a French school child's geography book, the map of the world shows France, the rest of the world is listed as 'Not France'"

Which school book would that be? Because my 5 children have been/are still going through the system here & I haven't seen it yet.

And long live the art of fine wine making, the beautiful chateaux, the preservation of

and an increase in their activities and all which lives around them.

Perhaps they can be helpful....and possibly a hindrance but that is not remotly

anything to do with my project ....

Well here goes....

I have explained to him in French and he did not seem amazed.

There are hundreds of chateaux within a 50km radius of my region...

MANY of them with unused out buildings or parts of the chateau.

With great simplicity and strict business regime he would create

an area suitable for a....garden centre, wine bar, small restaurant....the

tasting with a picnic basket.Whatever.

I would advise on décor and any catering aspects.

Outlay would be small as the changes would be ones of a non structural

nature and with may the creation of simple extraction and poss

cooking area.

I would help in every aspect regarding cuisine, staff....if necessary and

how to go about the creation of a decent catering establishment.

The new outlook will surely bring more people to buy wine.

This is just the foundation of the idea.

A well organised business small and tasteful could work....

I became an architect because I loved architecture not as a remote self indulgence but because I loved working with clients and places and creating buildings to be enjoyed. Now the accountants have got hold of it and you don't ask them about firmness, commodity and delight do you? Hindrances? In the middle ages those that were effectively architects were the masons of the cathedrals.People in their millions go to see lovely cities and buildings, not pore over some turgid set of accounts. LONG LIVE ARCHITECTURE!

David does have a point with architects but with many liberal professions. France still lives with corporations like in the Middle Ages...Notaries, lawyers, judges, accountants, etc. Many people feel the need to be in these associations. Having had to deal with some of them, they can be helpful as they can be hindrances.

trying to reach you privately David

Actually, my oldest daughter answering puts them off. When they ask where a parent is she tends to ramble rather than answer or hand the phone over.