How to reflate France’s economy Essay

IntroductionThere atomic number 18 two contrary ways to help Frances economy get back on track. They ar nonindulgence and growth. Austerity programs consist in a slew of policies established by governments in financial debt difficulties. These policies aim to reduce expending for public goods and services. (Example in France, with professorship Sarkozy, approximately 150.000 civil servants were fired, this decreased the sum up of m whizzy used to pay civil servants in France, which in turn, gift it possible to run the country without having to borrow as much m singley). harvest-feast programs consist in increasing the GDP and spending m superstary, to reflate the economy. Of flesh this m iodiny has to come from whatsoeverwhere, so growth programs often include awful a lot of taxes. (Example in France, with chairwoman Hollande, taxes were imposed on rim profits, and taxes on the richest pop out of the population were increased). Economists atomic number 18 very divid ed on this subject, and both of theoretically go bad it depends of the situation we are in.Economic planAusterity is a short term solution only a countrys economy cannot rely on it forever. This is why as a president it would be good to start by fashioning the debt of France smaller, then using this to our advantage, andFirstly, we extradite to start out France more than competitive. To do this, we give transmute the work time of the French, and their minimum age of retirement. Today, the French work on a minimum basis of 35 hours per week, and retire at a minimum age of 60. To make France more competitive, we im stir up change these to 40 hours, and an age of 64. The average life span keeps on uprise thanks to snap off health care it would only go hygienic for the economy if people were to work a few years more, because on that point would be less to pay for people who work. The 40 hours bequeath be payed the same, because if there were the same amount of workers in a company save all of them had to be payed more, the company in question would either retreat money in paying them, or fire a part of them.To increase competitivity, we prepare to make the price of production in France subalterner, so that fewer companies send their production in China for example. To do so, we have to lower the case insurance contri only ifion payed by the employer to pay his workers in France. Products that are do in France leave behind therefore be more expensive because the workers are payed in France than in China for example. To counter this, we pull up stakes add a tax on products (depending on the price of the product) made in countries that have very cheap labor. (China, Vietnam, Turkey, Thailand, etc) This will bring part of the production back to France, and the loss of money in the lowering of the national insurance contribution will be fixd by the tax.Next, we will reduce the salaries of the ministers and the president. The salaries of the min isters is now of 9940 euros (Under president Hollande), which will be reduced by 30%, leaving them with 6660 euros per month. The salary of the president is now of 14 910 euros (Under president Hollande) it will be reduced by 40%, leaving the president with 8950 euros per month. We would also stop having mayors in every single city, and do give care in the U.S.A, which is to instate a governor for each department. This governor would be in charge of all the cities in his department, and when a decision is to be made, 20 inhabitants of the department will be called, to hold a committee and make the decision. It will be a duty, which means the inhabitants will have to go. This will help the economy, as there will be only one person to pay per department, and not dozens of mayors, it also gives a component part to the citizens in decision making.There are many people who are unemployed in France (10%) and receive unemployment benefit for a very foresightful time, without trying to f ind work. As this does not egg on them to find one because they receive money without doing anything, we will keep on giving this unemployment benefit, but only for 2 months, the time for them to find work. This reform will motivate them to find work, this way they will be productive, therefore helping a company or industry to grow, and money will not be wasted. This change will of course also make unemployment decrease.Small companies are very important to the economy, as they might end up as the next multinationals, but they are heavily taxed, which makes them very hard for them to grow. If we make these taxes smaller, people would be encouraged to start their own companies, and this will bring in employment. Small companies that are already pretendd will grow faster, and will create jobs, which will make the company itself more productive.These jobs will be there for the population receiving unemployment benefit. There will be a loss if we entirely relieve taxes on small comp anies, so we will compensate this by taxing bigger companies, which have already emerged, because they will not be affected by a tax as much as a small company. (The tax in question will not be too strong it will just be profuse to compensate for the loss in the tax relief on smaller companies)Education is a very important part of the French economy. Schools are here to train the future generations of workers. Access to education is free instantly in France, but the tonus of this education is sometimes questionable. Firstly, there are not enough professors in the schools. It is logical that if there were to be one professor for 25 students, the quality of the education they would receive would be better than today, where we have in average one professor for 30 students.To compensate this lack of professors in schools, we will create 12000 jobs for professors in school this will make the student/professor ratio smaller, which will increase the quality of the education received. To become a professor, you have to be trained two years in a university. This is not enough, considering the corrective problems in some schools. Professors should have 3 years of complete training, which would include a deeper disciplinary course, teaching methods, etcThe principal sectors of production of France are agriculture, energy, tourism, traffic and industry (France is one of the first industrial powers worldwide). Mass commercialise retailing is choking the sector of trade, as it attracts the clients of little traders and makes mass profit out of it it also allows itself to taint products at very low prices from producers (Farmers in the case of a supermarket). To thaw this problem, we would add a tax on products bought in mass market retailing services, which would bring clients back to the little traders, so that they dont die out. Little trades do not buy products as low priced as supermarkets do, which would make money for producers. In the case of a supermarket, t he trade and agriculture sector would both benefit from this tax.A French home plate produces in average 16.4 scads of Co2 every year this is remote too much. To avoid this, and preserve the environment, a tax will be imposed on households that end the year with more than 16 tons of course this number will decrease every year to amend the given results. Renewable energies provide 13% of the electricity needed in France, nuclear energy provides 76% and fossil fuels provide 11%. We would consecrate in research for renewable energies (Hydro-energy, wind energy, solar energy), and close sight the most risky nuclear reactors. (For example the 4 reactors in Blayais, Braud-et-Saint-Louis, which are not very productive and are very old and unsafe). ratiocinationAs a president, I would go towards austerity first, to reduce the debt of France, and to have more possibilities in my actions later. France is already in a dangerous situation, and exhalation into a smooth of growth would be spending too much money that we dont have (Which is why I chose austerity as a short term solution), and it would be too much, France would go into a recession. After a period of austerity (Which means afterwards having reduced the debt), I would have gone in a politic of growth, which would have thrown Frances economy back on track.