Posts tagged with: Francois Hollande

François Hollande

François Hollande

At The American Spectator, Acton Research Director Samuel Gregg looks at France’s embattled Socialist president, François Hollande, as the first anniversary of his term in office approaches. As Hollande’s approval ratings hit new lows, “Mr. Normal,” Gregg writes, is starting to look like “Mr. Irrelevant.” What’s more, he adds, “two of the biggest problems that have corroded Hollande’s credibility: his apparent inability to address France’s economic difficulties; and a growing awareness throughout France that la grande nation is slipping into the minor league when it comes to countries that wield influence in the EU.” More from Gregg:

So why such a rapid fall from grace? Some of it is of Hollande’s own making, such as his effort to impose a 75 percent tax on personal incomes over €1 million. Though the measure was eventually ruled unconstitutional, it managed to alienate a business community already suspicious of someone who once publicly proclaimed, “I dislike the rich.” The fact that Hollande is now trying to levy the same tax-rate on businesses that pay salaries over €1 million isn’t helping matters.

Nor did it help that the minister charged by Hollande with cracking down on tax-fraud, Jerome Cahuzac, was forced to resign after admitting he had maintained a Swiss bank account for over 20 years. Cahuzac is now under investigation for tax-fraud. The situation worsened when Hollande ordered his ministers to fully disclose all their personal holdings. Everyone in France has thus been reminded that most of the Socialist ministers who regularly rail against les riches are themselves quite wealthy. Caviar-Limousine-Champagne Socialism, anyone?

Read Samuel Gregg’s “The Incredible Shrinking Monsieur Hollande” at The American Spectator.

Blog author: jcouretas
posted by on Wednesday, January 23, 2013

In the Washington Times, Nile Gardiner praises Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future, the new book by Acton Research Director Samuel Gregg. Gardiner, the director of the Margaret Thatcher Center for Freedom at The Heritage Foundation and a Washington-based foreign affairs analyst for The Telegraph, says Becoming Europe “should be on the desk of every member of the House and Senate who cares about the future of America as a prosperous and free nation.” Gardiner recommends the book for its “rich detail describing the economic and social ‘Europeanization’ of America, from the rise of vast welfare systems to growing skepticism of the merits of the free-enterprise system.” Excerpt from the review:

“Becoming Europe” is a meticulously researched and well-argued thesis that lays out what is at stake for the world’s superpower, as it faces a stark choice between European-style decline or a return to the original vision of America’s Founding Fathers, as well as the classical liberal teachings of Alexis de Tocqueville, Friedrich von Hayek and Adam Smith. Mr. Gregg, who is director of research at the Acton Institute, paints a grim picture of the direction America is taking but, nevertheless, conveys a positive message to his readers. Mr. Gregg argues that while America is indeed on the path to the European model, it can still turn back and avoid the fate that Europe looks doomed to suffer. In many respects, this is an optimistic book based upon faith in America’s ability to renew itself through rediscovering the principles of economic liberty.

I agree with Mr. Gregg’s assessment. As Gallup polling consistently shows, America is still at its core a conservative nation, one that cherishes the foundations of individual liberty. The fire of freedom still burns brighter on this side of the Atlantic than it does in the Old World, where the suffocating supranationalism of the European Union marches on, with the EU heading toward ever-greater political and economic centralization. The European nightmare can be avoided here, however, only if America’s leaders, at both a national and state level, are willing to stand up for economic freedom and reject the destructive ideology of big government. Washington is already on the path to Brussels, Paris and Athens, but it still has an opportunity to reverse course and avoid the road to economic ruin.

Read Nile Gardiner’s full review of Becoming Europe in the Washington Times.

Blog author: aknot
posted by on Wednesday, August 8, 2012

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.

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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France elected a new president yesterday, the socialist Francois Hollande who has vowed to rein in “Anglo-Saxon” capitalism and dramatically raise taxes on the “rich.” Voters turned out Nicholas Sarkozy, the flamboyant conservative whose five-year term was undermined by Europe’s economic crisis, his paparazzi-worthy lifestyle and a combative personality. But Sarkozy’s defeat exposes “a crisis of identity and purpose that presently afflicts much of Europe’s center-right,” according to Acton Research Director Samuel Gregg in a new analysis on The American Spectator.

The reasons for this widespread disarray on Europe’s right are partly structural. Many European electoral systems are designed to prevent any one party from governing in its own right. Many center-right parties consequently find themselves in coalitions with left-leaning groups. This blunts their ability to challenge left-wing social and economic policies.

Tendencies to tepidness are accentuated by the fact that European politics is dominated by career politicians to an extent unimaginable to Americans who don’t reside in Chicago. European center-right politicians are consequently even more focused upon acquiring and staying in office than their American counterparts. That means they are extremely risk-averse when it comes to challenging the European status quo — such as becoming associated with proposals for substantive economic reform or confronting the intolerant leftist hegemony that dominates European educational institutions.

A far deeper problem facing Europe’s center-right, however, is its intellectual-ineffectiveness. By this, I don’t mean that there aren’t any intellectually-convinced European conservatives and free marketers. In fact, there are plenty of such individuals. Their impact upon the public square, however, is minimal.

Such ineffectiveness has several causes. First, most non-left European think-tanks are explicitly associated with existing political parties and usually government-funded. Hence, the willingness of people working in such outfits to criticize their own side for failure to promote conservative principles — something many American think-tanks often do — is limited, if not non-existent.

Gregg also offers suggestions for revitalizing Europe’s conservatives. Read “Europe’s Right in Disarray” by Samuel Gregg on The American Spectator.