Posts tagged with: france

Blog author: aknot
Wednesday, August 8, 2012
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French President François Hollande has promised a 75% tax rate on those in his country who earn an annual salary above one million euros ($1.24 million). Not surprisingly, this number has struck fear into the hearts and wallets of quite a few of France’s top earners, including some who are contemplating leaving and taking their jobs with them. The New York Times has the story:

Many companies are studying contingency plans to move high-paid executives outside of France, according to consultants, lawyers, accountants and real estate agents — who are highly protective of their clients and decline to identify them by name. They say some executives and wealthy people have already packed up for destinations like Britain, Belgium, Switzerland and the United States, taking their taxable income with them.

They also know of companies — start-ups and multinationals alike — that are delaying plans to invest in France or to move employees or new hires here.

The potential tax increase threatens to handcuff “les Riches” and, ironically enough, undercut France’s prized notion of egalité, taking with it liberté and fraternité, the remainder of the country’s tripartite maxim. In Hollande’s France, these principles may not apply to the wealthy.

Of course, Hollande’s tax initiative is sure to have some beneficiaries. No, not the poor or the middle class. The real winners? Well, they live on the other side of the border. Also from the Times:

“It is a ridiculous proposal, but it’s great for us,” said Jean Dekerchove, the manager of Immobilièr Le Lion, a high-end real estate agency based in Brussels. Calls to his office have picked up in recent months, he said, as wealthy French citizens look to invest or simply move across the border amid worries about the latest tax.

“It’s a huge loss for France because people and businesses come to Belgium and bring their wealth with them,” Mr. Dekerchove said. “But we’re thrilled because they create jobs, they buy houses and spend money — and it’s our economy that profits.”

The entire story reminds me of a passage from Rev. Robert Sirico’s latest book, Defending the Free Market: The Moral Case for a Free Economy. In a chapter titled “The Idol of Equality,” Sirico addresses the unsustainable nature of simple redistribution. Instead, business development and job creation are essential–and lasting–tenets of economic growth. From the book:

When most people picture the 1 percent and their wealth, what comes to mind is designer clothing and jewelry, yachts and limousines, mansions and penthouses—all sorts of alluring and attention-grabbing luxuries. Luxuries so distracting, in fact, that we tend to lose sight of the fact that most of the wealth of the wealthiest is invested. It is put to work in the businesses they own and manage, and in stocks and other financial vehicles that provide the capital for countless other businesses. These are the businesses that provide the 99 percent with the goods, services, and employment that they regularly enjoy and often take for granted.

Whether it’s a big automotive plant or a small bakery on the corner, a microchip manufacturer or a family farm, all businesses that produce goods and employ people are owned by someone. It’s businesses that make up most of the wealth of the 1 percent. Confiscating that wealth and giving it to the other 99 percent would mean shifting much of that wealth from investment and production to consumption, since the poor and middle class consume a far higher percentage of their income than the wealthy do. This sudden shift from investment and production to consumption would demolish the infrastructure that makes jobs, goods, and services possible.

Hollande would be wise to read Defending the Free Market. Doing so might save his nation and preserve liberty, equality and brotherhood in the process.

Blog author: ckaupke
Friday, June 29, 2012
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Frédéric Bastiat (1801-1850)

This Saturday, June 30, is the 211th birthday of Frédéric Bastiat, one of the greatest political philosophers of the modern era. Considered among the founding fathers of classical liberalism, Bastiat is known for his simple and direct explanations of political and economic realities, his arguments against oppressive economic regulations and his clear and concise vision of a government of limited, enumerated powers, operating under the rule of law and unencumbered by favoritism or distributionist policies.

Bastiat drew on his Catholic faith and the writings of Adam Smith and John Locke to articulate a vision of limited, efficient government that respects each citizen’s God-given dignity, strictly adheres to the rule of law, and allows for a largely un-regulated economy in which individuals are free to pursue their interests through peaceable exchange with each other. His best-known works, and those most central to his ideas, are The Law and The Seen and the Unseen, articulating his central political and economic ideas, respectively. (more…)

Wis. Gov. Scott Walker

On National Review Online, Acton Research Director Samuel Gregg demolishes the left’s knee-jerk explanation for labor union decline, which blames “the machinations of conservative intellectuals, free-market-inclined governments, and businesses who, over time, have successfully worked to diminish organized labor, thereby crushing the proverbial ‘little guy.'”

Gregg writes:

“The truth, however, is rather more complex. One factor at work is economic globalization. Businesses fed up with unions who think that their industry should be immune from competition are now in a position to move their operations elsewhere — ranging from the southern states of America, to China, India, and other developing countries — where people and governments enthusiastically welcome the influx of knowledge, capital, and jobs. In this regard, it’s always struck me as ironic that unions in developed countries regularly act in ways that essentially hamper economic and employment growth in developing nations. So much for the “international solidarity of workers.” Comradeship apparently stops at the Rio Grande. (more…)

On May 15, Socialist Francois Hollande will be sworn in as France’s new President following elections this past weekend. According to Vatican Radio, Hollande is vowing to overturn many of current President’s Sarkozy’s economic reforms, in an attempt to relieve France’s current debt crisis. One of Hollande’s goals is to increase taxation on millionaires to 75 percent. With more than a quarter of a million French citizens already working in London, this type of heavy taxation may cause an exodus of wealth from France – people with the ability to create and sustain businesses will simply take their money elsewhere to invest.

Kishore Jayabalan, the director of the Rome office of the Acton Institute for the Study of Religion and Liberty, spoke to Vatican Radio about the election. You can listen to that interview; click on the audio player:

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Protesters outside parliament on May 5 in Athens, Greece.

On the blog of The American Spectator, Acton Research Director Samuel Gregg looks at how Europe refuses to address the root causes of its unending crisis:

Most of us have now lost count of how many times Europe’s political leaders have announced they’ve arrived at a “fundamental” agreement which “decisively” resolves the eurozone’s almost three-year old financial crisis. As recently as late October, we were told the EU had forged an agreement that would contain Greece’s debt problems — only to see the deal suddenly thrown into question by internal Greek political turmoil, which was itself quickly overshadowed by Italy’s sudden descent into high financial farce.

No doubt many of these dramas reflect commonplace problems such as governments having difficulty reconciling promises made in international settings with domestic political demands. The apparently unending character of Europe’s crisis, however, is also being driven by another element: the unwillingness of most of Europe’s political establishment to acknowledge the root causes of Europe’s present mess.

One such mega-reality is the unsustainability of the pattern of low-growth, big public sectors, heavy regulation, large welfare states, aging populations, and below-replacement birthrates that characterizes much of the eurozone. Even now, it’s difficult to find mainstream EU politicians who openly concede the high economic price of these arrangements.

Read “Can’t Face Economic Reality” on The American Spectator.

“You’ve lost a good opportunity to shut up.” So said French president Nicolas Sarkozy to UK prime minister David Cameron as an instance of what BusinessWeek has dubbed “Europe’s Insult Diplomacy.” But it’s a retort that strikes me as equally relevant for the pontifications that pour forth from ecumenical officials in Geneva on almost every topic under the sun.

The latest instance of imprudence in the cause of desperately seeking relevance is the claim from Rev. Setri Nyomi, general secretary of the World Communion of Reformed Churches (WCRC), that the reformer John Calvin “would have been in the streets of New York or London with a placard,” joining the Occupy Wall Street movement.

I explore the dynamics of what I call the “ecumenical-industrial complex” in my book released last year, Ecumenical Babel: Confusing Economic Ideology and the Church’s Social Witness. One of the points I make in the book is that ecumenical officials like Nyomi cannot seem to resist the opportunity to weigh in on contemporary political and economic issues as if there is a single, univocal, and absolute Christian position.

The claim that Calvin and OWS are kindred is precisely the kind of obfuscatory rhetoric that we don’t need from ecclesiastical representatives, whether at the congregational, denominational, or ecumenical level. On the constructive side, in Ecumenical Babel I make the case that the ecumenical movement, rather than making absurd claims akin to that of Calvin and OWS, might “decline to issue doctrinaire and casuistical proclamations about this or that particular policy. Instead, the ecumenical movement would understand its role in this sphere to provide broad guidance rather than particular judgments.”

The upshot of such a change would be that “the ecumenical movement’s social witness would place correspondingly less emphasis on direct political engagement and advice…and correspondingly greater emphasis on providing moral guidance to the church.” As opposed to saying that JC (whether John Calvin or Jesus Christ) “would have been in the streets of New York or London,” as Nyomi claims, instead “the character of ecumenical statements on social issues…would be far more restrained and chastened than we find today.”

But as long as the mainline ecumenical movement continues to conflate unity with unanimity on particular social questions, don’t expect reform to happen anytime soon.

Blog author: jcouretas
Thursday, November 3, 2011
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Acton’s Kishore Jayabalan on Vatican Radio today. Summary:

The spectre of a hard Greek default and euro exit hung over a meeting of G20 leaders beginning in Cannes on Thursday. U.S. President Barack Obama said after talks with his French counterpart Nicolas Sarkozy that Europe had made some important steps towards a comprehensive solution to its sovereign debt crisis but needed to put more flesh on the bones and implement the plan. The world is counting on the G20 to find a way out of the crisis, before it begins spreading to other parts of the globe.

“A lot of what is happening…at the G20 summit in France over the next couple days is really the inevitable consequences of a three or four year unwillingness of European politicians, and I would say American politicians as well, to deal with what’s obvious to most people is paying attention to this debt crisis,” said Kishore Jayabalan, the Director of the Rome office of the Acton Institute for the Study of Religion and Liberty.

“At some point government leaders are going to have to be frank and tell people they can’t rely on government benefits indefinitely,” he told Vatican Radio. “The entire scheme was based promises that can’t be kept.”

Jayabalan said in the future, people are going to be forced to be more self-reliant, and create their own opportunities.

Click on the player below to listen in:

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Blog author: hunter.baker
Sunday, April 3, 2011
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While visiting my grandmother’s home for her 95th birthday a little evening television surfing brought us to House Hunters International. We observed with fascination as a couple living in New Orleans worked toward their move to the French countryside.

The husband was a professional trumpeter apparently making money on the side as a carpenter. The wife was identified as a dancer of some sort. While we heard the husband pop out a few bars of When the Saints Come Marchin’ In on a couple of occasions, the wife did not provide any sort of evidence of her spinning and twirling chops. They had a young son and seemed to have a friendly community of pals in the Big Easy.

During the episode, we discovered that the wife was French and that was part of the motivation for making the move to France, but the big draw, enthusiastically embraced by the husband, was that “Everything is free there!” He went on to mention health care as an example.

The first thing that comes to mind is that this young fellow needs an immediate short course in Robert Heinlein’s TANSTAAFL (There Ain’t No Such Thing as a Free Lunch). Someone is paying, my friend. Now, maybe it’s a rich guy. I don’t know. Does the rich guy owe this couple free healthcare? Or then again, maybe they will pay for it after all. Maybe they’ll pay in taxes. Maybe they’ll pay in other ways than money. Maybe they’ll pay with things like time and DMV-style inconvenience.

The second thing that occurs to me is that policymakers in France can’t be very happy with developments like this. A young couple with no certain way to make a living is moving to their country to take advantage of “free” things like healthcare. THAT’S GREAT NEWS!

The word “sustainability” applies to things other than the environment. :-)

On Public Discourse, Acton Research Director Samuel Gregg observes in a new piece that “while moral beliefs have an important impact upon economic life, the manner in which they are given institutional expression also matters. This is illustrated by the different ways in which people’s responsibilities to those in need—what might be called the good of solidarity—are given political and economic form.”

Excerpt:

… the rather modest welfare and labor-market reforms presently being implemented in Spain, Greece and France have sparked considerable moral indignation (and not just from welfare recipients) despite widespread acknowledgment that such reforms are inevitable. Obviously there are many whose negative reaction is partly driven by consciousness that such reforms mean that the days of not-very-demanding jobs for life may be numbered. Nevertheless it’s also true that many Western Europeans genuinely believe the good of solidarity is threatened by efforts to move beyond the present and economically unsustainable status quo, precisely because of the state-oriented institutional expression given by Europeans to the surely uncontroversial proposition that we are our brother’s keeper.

While Americans are often regarded as more individualistic than Western Europeans, this perception is partly driven by the different economic and institutional expressions that Americans have often given to the idea of concern for neighbor. This was among one of the distinguishing features of America that struck the French social philosopher Alexis de Tocqueville when he visited the United States between 1831 and 1832. The emergence of social and economic problems, Tocqueville noted, did not elicit demands from Americans for the government to “just do something.” Indeed, Tocqueville marveled at the relative absence of government from American life and the corresponding vitality of civil society, especially when compared to the state’s all-pervasive presence in his native France.

Tocqueville quickly realized, however, that this “absence” of the state was not symptomatic of a callous disregard by Americans towards their fellow citizens in need. Though Americans tended, Tocqueville noted, to dress up their assistance to others in the language of enlightened self-interest, he observed that Americans usually expressed the value of helping those in need through the habits and institutions of free and voluntary association. In short, Tocqueville wrote, Americans banded together to try and resolve social and economic problems through voluntary associations. Some of these associations (like churches) had a more-or-less permanent presence in American society. Others lasted only as long as a particular economic or social problem persisted. As a consequence, the same pressures for centralized top-down government-led solutions and all their economic implications that prevailed in France were not present in the young American republic.

Read all of “Socialism and Solidarity” on the Public Discourse website.

Blog author: mvandermaas
Friday, April 30, 2010
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U·to·pi·a [yoo-toh-pee-uh]- noun – an imagined place or state of things in which everything is perfect. The word was first used in the book Utopia (1516) by Sir Thomas More. The opposite of dystopia.
ORIGIN based on Greek ou not + tóp(os) a place

Last Exit to Utopia

Last Exit to Utopia by Jean-François Revel

Note, dear reader, the origin of the term “utopia”: the Greek root indicates that utopia is, literally, nowhere. It is not a place. It does not exist. Sir Thomas More, who first used the term, certainly never considered such a place to be realistically possible. And the truth of the matter is that anyone remotely acquainted with the reality of human nature and history must admit that we do not live in a perfect world, and that such a place would be impossible for fallen humanity to create.

Anyone, that is, besides leftist intellectuals and politicians, who continue to insist – against the overwhelming evidence of history – that socialism can work, that indeed it must work! They argue, in spite of all the plain evidence against them, that socialist solutions are more efficient and equitable than market solutions, and that the classical liberal system that has created the most vibrant societies and powerful economies in world history should be at the very least reined in and subjected to strict scrutiny, and at most outright replaced by a “more humane” socialist system.

Jean-François Revel was a French intellectual, a member of the Académie française, and one of the greatest French political philosophers of the 20th century, at least in the seemingly small branch of 20th century French political philosophy that wasn’t completely enamored of totalitarian schemes. Prior to his death in 2006, he penned a book called Le Grande Parade, which has now been translated into English and re-titled Last Exit to Utopia, in which he exposes the intellectual and moral failure of leftist intellectuals who have served as apologists for the brutal communist regimes that brought misery and death to millions in the last century, and examines the project that was undertaken by the left after the fall of communism to rehabilitate Marxist and socialist ideas.

Revel was no stranger to this type of clear thinking; indeed, as early as 1970 (in an earlier work, Without Marx or Jesus) he was willing to completely dismiss the argument that Stalin had hijacked and warped the course of Lenin’s revolution by noting that “…Neither Lenin, if he had lived, nor Trotsky, if he had remained in power, would have acted any differently from Stalin.” He understood that the problems in socialist systems were not caused by people corrupting the system, but stemmed from the design of the system itself. He restates that 1970 argument in 2000 – this time with the benefit of retrospect – in Utopia, describing the state of affairs after the fall of the Berlin Wall in 1989: (more…)