A Socialist President? What Are The French Thinking?

Well, if you don't know by now, Nicolas Sarkozy lost the top job in French politics.  In his place will be an avowed socialist: François Hollande.  Now, if this newly minted socialist President gets his way, my guess is that it won't be long before France wishes they had Sarkozy back, because every economic plan that Hollande has for France is an economy killer.

For one, Hollande plans not to just raise the taxes on the rich, but, instead, he's clearly stated that he wants to "soak the rich".  If you make a million euros or more a year, he plans a 75% tax.  For those making 150,000 euros or more, the tax will be 45%.  Executive pay will be mandatorily limited to 20 times that of the pay of the average worker.  He will increase the Value Added Tax (VAT) on everything people buy to help pay for his new social programs.  He also plans to arbitrarily hire 60,000 additional teachers.  And, the retirement age with full pension benefits will be lowered from 62 to 60 years of age for those working at least 41 years.

Sarkozy lost because the French economy was floundering.  But, there is nothing in the Hollande plan for  that will make the French economy any better. Just more taxes and more spending.  Socialism doesn't work.  It hasn't worked in Venezuela and it won't work in France.  All that will happen is that the wealthy and some businesses will leave the country.  With earlier retirements, pension expenses will eat the country alive. With higher VAT's, consumer spending will be slowed and the economy along with it.  France is already in recession. Hollande will only exacerbate that harsh economic reality.