As I furthered my research on the State of France, I spotted some intriguing information on "The World Factbook" website. While reading information about France I learned that, "France is in the midst of transition from a will-to-do modern economy that has featured extensive government ownership and intervention to one that relies more on market mechanisms". "The government has partially or fully privatized many large companies, banks, and insurers, and had ceded stakes in such leading firms as Air France, France Telecom, Renault, and Thales".
I was astonished to learn that the State of France has privatized many large companies. And that is similar to what the great Philosopher Karl Marx talked about in his books, literatures, Speeches, etc. But instead of private property it is private corporations. So according to this research, the State of France is transitioning into a capitalist state.
The World Factbook continues by stating, "France maintains a strong presence in some sectors, particularly power, public transport, and defense industries". "With at least 75 million foreign tourists per year, France is the most visited Country in the world and maintains the third largest income in the world from tourism"
Here are some of France's pressing problems: "France unemployment rate increased from 7.4% in 2008 to 9.5% in 2010". "The government pursuit of aggressive stimulus and investment measures in response to the economic crisis, however, are contributing to a deterioration of France's public finances". "The government of France budget deficit rose sharply from 3.4% of GDP in 2008 to 7.8% of GDP in 2010", while Frances public debt rose from 68% of GDP to 84% over the same period". "Paris is terminating stimulus measures, eliminating tax credits, and freezing most government spending to bring the budget deficit under the 3% euro-zone ceiling by 2013".
"President Sarkozy-who secured passage of pension reform in 2010-is expected to seek passage of some tax reforms in 2011, but he may delay additional, more costly, reforms until after the 2012 elections".
These are some of France's pressing problems that I have obtained through my research of France on the "Central Intelligence Agency (The World Factbook)" .
Interesting that amid an unemployment and fiscal crisis, France is looking to free up some of the government-run corporations to the private sector. They are throwing out stimulus plans, scrapping tax credit and curtailing spending to get this under control. This is all completely opposite of the actions being taken in the U.S., even though we are in very similar circumstances. This would be a great comparison piece in a few years when the effects of each plan:
ReplyDeletegovernment spending to fuel the economy (U.S. model atm) and
cutting government spending (France/Paris model)
show in unemployment rates and budget deficits.
Thanks for the post! Keep up the great work!
@ jm3brown. I'm not sure what your government name is (lol) but, I am delighted that you enjoyed my most recent France blog. I really love doing research on the state of France, so it's my pleasure to share with you the information that I collect! Stay tuned in for more super information!
ReplyDeleteI think that even though France is having some economic problems, it is important that the French government maintain their strong influence in the sectors you stated. France has a long history of public ownership, and nobody knows what the people want out of their infrastructure, industries, and government like the people themselves. So, I say that France should continue a socialistic economic plan.
ReplyDeleteIt's nice to see that France is actually trying to do something to help out the state of its unemployment rate. Is there just one big pressing reason for this rise in unemployment or is it a whole bunch of reasons that just contribute to one big mess?
ReplyDelete