Posted on 11/07/2005 1:06:18 PM PST by quesney
Devastating...
Will rioters burn the French social model? November 7th, 2005
Last week Paris was burning. Now it is the little town of Evreux where 50 cars were torched on Saturday night by Muslim teenagers. No problem? Evreux is 25 miles from Giverny, the home of Monets garden and its famous Japanese bridge. The garden was restored in the 1970s by an American publishing heiresses.
After the Los Angeles riots in 1992 the French were supercilious. It couldnt happen here, they sniffed. The French social model made such a thing impossible. But on Sunday after ten nights of riots, French President Jacques Chirac convened an emergency security meeting to address the crisis.
He could start by ordering the French pompiers to put out the blaze in the social model, a system designed to frustrate opportunity and job growth for the poor and the marginalized.
Inspired by their social model, the French have a very high minimum wage, about twice the level in the United States. Ten years ago, the Joint Economic Committee of the U.S. Congress issued a bibliography on how the minimum wage reduced employment, reduces employment among teenagers more than adults, hurts the unskilled, hurts low wage earners, increases the number of people on welfare, and hurts the poor generally. The minimum wage is so high in France that supermarkets dont hire people to bag groceries.
Encouraged by the social model, the French have extremely rigid employment laws that make it difficult to fire employees. As the consulting firm Triplet & Associés puts it,
employment in France is not at will [and] dismissals are subject to stringent, and often bureaucratic, procedural statutory constraints.
This makes employers in France hesitant to hire permanent employees. They do hire interns, of course. And now the interns are starting to protest. They are getting fed up with serial internships but no jobs.
The French also have generous unemployment benefits. They have recently slashed them, according to Deutsche-Welle, from 30 months to 22 (compared to US state unemployment benefits that mostly last for 6 months.) Research on long-term unemployment indicates that the unemployed are hurt by overgenerous benefits. They lose skills while they are unemployed, and after a year, the skills erosion gets serious. So it is not surprising that Evelyne Zylbermann, 22 months after she last had a job, doesnt know what she should do now that her benefit has been cut from $1,780 to $500 per month.
The French have always strongly believed in protecting French companies from global competition and administer a complex system of subsidies and preferences that privilege French enterprises over non-French companies, and producers over consumers. But researchers such as William W. Lewis in The Power of Productivity assert that the way to grow a healthy economy is by removing all privileges and subsidies for producers and entrenched interests. Undistorted competition in product markets is essential.
What about discrimination and racism? Surely nothing will change while the children of Muslim immigrants in the Paris suburbs remain underprivileged and oppressed?
Actually, light to moderate discrimination is not much of a barrier to advancement. In New York City, the Irish went from No Irish Need Apply and 50,000 streetwalking nymphs of the pave to respectability in fifty years, and the Jews went from the Pale of Settlement in Eastern Europe to Harvard in a single generation. Blacks in the United States made more rapid economic progress in the years before the Civil Rights Acts of the 1960s than afterwards, according to Thomas Sowell.
The French are lucky. While they have been pompously digging themselves in deeper with their brilliant social model, we dim Anglo-Saxon cowboys have figured out how to dig out of the social model hole. For macroeconomic policy, set tax rates low and uniform. For the labor market, lower the minimum wage, unemployment benefits, and dodgy disability benefits. For the business arena, wipe out subsidies, rigidities, and privileges that distort the markets for products and services. But it is unlikely that the French are ready to bite the bullet. Not yet.
In the wake of the US riots in the 1960s the Kerner Commission called for the addition of 1 million government-created jobs, the institution of a higher minimum wage, significantly increasing welfare benefits, spending more money on education and housing. That was how the political elite in the US proposed to deal with urban riots: follow the French social model.
After the long hot summers of the 1960s it took 15 years in the US to cut tax rates in the teeth of opposition from the US political elite. It took a mere ten years before the US started deregulating transportation and telecommunications monopolies. But it took 30 years to reform the welfare system to put a time limit on benefits in the teeth of opposition from the Democratic Party.
Why should we assume that the French are any smarter than we are? So just what percentage of the population of France will be Muslim by the time they get around to reforming their faltering political economy?
Christopher Chantrill (mailto:chrischantrill@msn.com) blogs here. His Road to the Middle Class is forthcoming.
Christopher Chantrill
Let's invade...exhume the bodies of those Americans who gave their lives in WWI and WWII so that they can be re-buried in the U.S....then leave France to the Muslims or whoever else cares to want it.
If France does fall then
I hope the Muslims can change
crazy French spelling!
Is that Ev-rex? Or
Ev-roo? Maybe Ev-er-roo?
Man, I hate that stuff!
If France steps up to the plate and drops a heavy hammer on these criminals, and cleans them out of every nook and cranny of society, and resists "opening a dialogue", then she has a chance.
Otherwise, everyone out of the pool.
If France is lost, I'm afraid I won't spend any time looking for it. Might get my pants dirty.
He was actually convening them to get an address to send his letter of surrender.
Well, we should offer the hot women an opportunity to come to the US.
Leave the chunkies behind
As long as they pass the soap, water, razor, toothbrush, and deodorant test. Recent polls show that millions of them never bathe or brush their teeth...and quiet a few do it on an irregular basis.
I think I'd surround The Louvre with tanks. Like now.
oops...quiet should have been quite. Spell check isn't perfect.
The average Frenchman takes a bath once a year whether he needs it or not.
France is lost, blind, crippled and maimed from multiculturalism and socialism.
Too bad they don't have any gas shells left from WWI.
Time to stake our claims.
I call dibs on Miss Marceau.
I've got Sophie's back!
Lost? Were they ever around? Not when the United States needed them they weren't but when they were hurting they sure as hell wanted our help. Now they are reaping what they have sown. I've dug down as far as I can go and still cannot muster any sympathy for them.
Memo to Chirac: To survive think "large-scale deportation".
If the muslims take over, does Pepe Le Peu
become Pepe Al-Peu?
I think we should trade Julia Roberts for Marceau. That would correct the cruel irony of it.
Now be fair, English has some weird spelling too. why is one pronounced won, for instance.
Well, we should offer the hot women an opportunity to come to the US.
Their still French liberal socialists pigs. You might want to think it over.
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