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Hollande's Insane Proposal: "Make Layoffs So Expensive For Companies That It's Not Worth It"
MISH'S Global Economic Trend Analysis ^ | 10/03/2012 | MIKE SHEDLOCK

Posted on 10/04/2012 7:57:09 AM PDT by SeekAndFind

Unemployment in France touched 10.2% in April, a number last seen in 1999 according to data from Eurostat.



click on chart for sharper image

The question on newly-elected President Francois Hollande's mind is what to do about it.

Economic Insanity
 
Hollande's layoff clampdown solution according to Labour Minister Michel Sapin is to "make layoffs so expensive for companies that it's not worth it."
France's new Socialist government is planning to ramp up the cost of laying off workers for companies in the coming months, its labour minister said on Thursday after data showed the jobless rate hit the highest level this century at 10 percent.

"The main idea is to make layoffs so expensive for companies that it's not worth it," Sapin said in an interview with France Info radio.

"It's not a question of sanctions, but workers have to have compensation at the right level," he said.

Industry Minister Arnaud Montebourg is also planning legislation that would force companies to sell plants they want to get rid of at market prices to avoid closures and job losses.
Four Things, All of Them Bad

  1. Mass layoffs will occur before the law passes.
  2. Companies will move any jobs they can overseas.   
  3. Ongoing, if it's difficult to fire people, companies will not hire them in the first place. 
  4. Corporate profits will collapse along with the stock market should the need to fire people arise.

The proposal to force companies to sell plants rather than fire workers as outlined by Industry Minister Arnaud Montebourg and Labour Minister Michel Sapin is nothing short of economic insanity.

Nannycrat Dilemma

Think the Nannycrats in Brussels will go for this idea? If they do, they will wreck all of Europe. If they don't, then how are they going to "harmonize" everything?

For more on nannycrats and the nannyzone please see ...


Also see my original post on the "nannyzone" written June 2, 2011, nearly one year ago today: Trichet Calls for Creation of European "Nanny-State" and Fiscal "Nanny-Zone"

Addendum:

Reader "Bob" writes ....

Point 3 is the biggest but it gets even more insidious. The companies that have enough employees now are generally larger companies with a political voice. The companies that will need employees later are generally smaller, entrepreneurial companies with no political voice.

Since most job creation happens at the entrepreneurial level, the proposed policy will subsidize corporate stagnation while stemming the flow of entrepreneurial companies entering the market.

Over the long haul, this will kill France's economic competitiveness while increasing unemployment.

Recall government enforced jobs in the former USSR in the 1980's. How well did that go? Things got got so bad the USSR had to dissolve.


TOPICS: Business/Economy; Government; Society
KEYWORDS: france; hollande; layoffs; socialism

1 posted on 10/04/2012 7:57:15 AM PDT by SeekAndFind
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To: SeekAndFind

Did they translate atlas Shrugged into French.

That long ,long speech must be REALLY boring en Francis.


2 posted on 10/04/2012 8:00:01 AM PDT by Vermont Lt (I am NOT from Vermont. I am from MA. And I don't support Romney. Please read before "assuming.")
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To: SeekAndFind
Hollande's Insane Proposal: "Make Layoffs So Expensive For Companies That It's Not Worth It"

Where do they get these ideas from? Socialists truly are mentally ill.

What they will get is - make hiring so expensive, no one will hire.

3 posted on 10/04/2012 8:00:07 AM PDT by PGR88
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To: SeekAndFind

The only thing surprising about France is that it took such a short time for the socialists to screw it up..


4 posted on 10/04/2012 8:00:07 AM PDT by ken5050 (Laura Ingraham:"If the GOP can't beat Obama in this economy; shut down the party!")
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To: SeekAndFind

These companies should just shut down in protest. They will never be allowed to make a profit there under this regime.


5 posted on 10/04/2012 8:02:30 AM PDT by GeronL (http://asspos.blogspot.com)
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To: SeekAndFind

Oh NO, I can hear 0bama’s brain cell churning now!!!


6 posted on 10/04/2012 8:02:55 AM PDT by jda ("Righteousness exalts a nation . . .")
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To: PGR88

Gee....maybe real estate will become a good deal there.


7 posted on 10/04/2012 8:04:00 AM PDT by Aria ( 2008 wasn't an election - it was a coup d'etat.)
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To: SeekAndFind
Industry Minister Arnaud Montebourg is also planning legislation that would force companies to sell plants they want to get rid of at market prices to avoid closures and job losses.

So let's see, do I build my plant in France, or do I build it somewhere else? Gee that's a toughie. /s

8 posted on 10/04/2012 8:04:00 AM PDT by dfwgator (I'm voting for Ryan and that other guy.)
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To: SeekAndFind

The Frenchies are about to get the government they deserve.


9 posted on 10/04/2012 8:04:33 AM PDT by fwdude ( You cannot compromise with that which you must defeat.)
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To: SeekAndFind

So if I own a company in France that makes widgets, and I am losing $2000 a day, would I be better off just stopping production, shutting down my business and moving myself and my money to another location, or losing $730,000 a year because the government won’t let me do what is needed to stop the bleeding?

What a difficult choice.


10 posted on 10/04/2012 8:05:32 AM PDT by Anitius Severinus Boethius (http://www.amazon.com/dp/B008BAL1OK/)
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To: GeronL

OK, let’s think abut this -— Your company is bleeding cash and you need to control cost. You discovered that one product line isn’t making money because there really is no market for it. Problem — You have 50 people working on that product line...

What to do if a law outlawing layoffs passes??


11 posted on 10/04/2012 8:06:19 AM PDT by SeekAndFind (bOTRT)
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To: GeronL

I think the solution to the problem is the Soviet solution. As one worker in the former USSR used to say :

“We pretend to work and they pretend to pay us”


12 posted on 10/04/2012 8:07:31 AM PDT by SeekAndFind (bOTRT)
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To: Anitius Severinus Boethius

I think one solution to the problem is the Soviet solution. As one worker in the former USSR used to say :

“We pretend to work and they pretend to pay us”


13 posted on 10/04/2012 8:08:28 AM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind

This is what the new Soviet Union did. You weren’t allowed to go out of business. They’d shoot Kulaks for going broke.


14 posted on 10/04/2012 8:10:36 AM PDT by massgopguy (I owe everything to George Bailey)
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To: SeekAndFind

exactly.

I guess you shut down the company and start another one in Germany or Denmark


15 posted on 10/04/2012 8:11:03 AM PDT by GeronL (http://asspos.blogspot.com)
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To: SeekAndFind

This is the French Revolution without the guillotines..expect a mass exodus of French businesses and capitalists.


16 posted on 10/04/2012 8:11:43 AM PDT by Hotlanta Mike (Resurrect the House Committee on Un-American Activities (HUAC)...before there is no America!)
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To: Vermont Lt
Did they translate atlas Shrugged into French.

Oui! La Grève, ISBN 9782251444178

17 posted on 10/04/2012 8:12:26 AM PDT by KarlInOhio ("Government is the only thing that we all belong to"=implicit repeal of the 13th amendment for all.)
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To: Vermont Lt

“In the name of the general welfare,” read Wesley Mouch, “to protect the people’s security, to achieve full equality and total stability, it is decreed for the duration of the national emergency that— “Point One. All workers, wage earners and employees of any kind whatsoever shall henceforth be attached to their jobs and shall not leave nor be dismissed nor change employment, under penalty of a term in jail. The penalty shall be determined by the Unification Board, such Board to be appointed by the Bureau of Economic Planning and National Resources. All persons reaching the age of twenty-one shall report to the Unification Board, which shall assign them to where, in its opinion, their services

Rand, Ayn (2005-04-21). Atlas Shrugged: (Centennial Edition) (p. 497). Plume. Kindle Edition.


18 posted on 10/04/2012 8:13:06 AM PDT by The Louiswu (Pray for America)
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To: SeekAndFind

I see new opportunities opening up — for French hit men. If you can’t lay them off, have someone knock them off.


19 posted on 10/04/2012 8:14:03 AM PDT by AZLiberty (No tag today.)
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To: Vermont Lt

My thought exactly...”Who is John Galt?”


20 posted on 10/04/2012 8:15:57 AM PDT by Abundy
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To: SeekAndFind

I’m surprised Hollande isn’t one of Obama’s czars by now.


21 posted on 10/04/2012 8:18:39 AM PDT by SWAMPSNIPER (The Second Amendment, a Matter of Fact, Not a Matter of Opinion)
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To: SeekAndFind
>>> Hollande’s Insane Proposal: “Make Layoffs So Expensive For Companies That It's Not Worth It”

The next logical conclusion for Hollande will be

“Make Bankcrupsy So Expensive For Companies That It's Not Worth It”

22 posted on 10/04/2012 8:19:55 AM PDT by Sir Napsalot (Pravda + Useful Idiots = CCCP; JournOList + Useful Idiots = DopeyChangey!)
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To: Vermont Lt

Ha! that was my first thought as well. What was the name of the government plan that killed production and free markets?


23 posted on 10/04/2012 8:23:28 AM PDT by Lee'sGhost (Johnny Rico picked the wrong girl!)
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To: The Louiswu

Can anyone say EuroZone? How many companies are already moving their operations and HQ’s out of France?


24 posted on 10/04/2012 8:24:09 AM PDT by GeronL (http://asspos.blogspot.com)
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To: SeekAndFind

When the government tells businesses who they must employ, and how much they must pay them, then we have full-fledged communism.
Wait - they already do!


25 posted on 10/04/2012 8:38:06 AM PDT by I want the USA back (Communism changed its name to "Democrat Party")
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To: SeekAndFind

I can think of half a dozen rust belt states where this proposal would win elections.


26 posted on 10/04/2012 8:44:38 AM PDT by Buckeye McFrog
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To: Sir Napsalot

“Make Bankruptcy So Expensive For Companies That It’s Not Worth It”

I was talking to a fellow car club member; a Frenchman. His family owned five businesses which he was running. He said that the government told them each year how much money he was going to make each year and he owed the taxes in advance. He said the government always overstated his earnings and it was hell to get the money back. Also, it was too expensive to lay people off. One Friday, he locked it all up and moved to America. On Monday, the doors were all locked. He said he’s never looked back.


27 posted on 10/04/2012 8:56:21 AM PDT by Gen.Blather
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To: fwdude

We should have let the Germans keep ‘em.


28 posted on 10/04/2012 9:27:16 AM PDT by Emperor Palpatine ("On the ascent of Olympus, what's a botched bar or two?" -Artur Schnabel)
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To: The Louiswu
That's exactly what first came to mind.

The Kenyan must go.

29 posted on 10/04/2012 10:28:58 AM PDT by ex91B10 (We've tried the Soap Box,the Ballot Box and the Jury Box; ONE BOX LEFT!)
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