French socialism scares investors, impoverishes people

As a new survey shows that US investors' confidence in France has plummeted we are again reminded that socialism is sure to make you poorer

Francois Hollande
The Commentator
On 22 December 2012 15:28

Not content with effectively exiling the country's rich and famous (Gerard Depardieu's move to Belgium was reported last week) due to preposterously high rates of taxation, France's socialist government can now take pride in having well and truly put the frighteners on foreign investors too.

A survey of French branches of American companies by the American Chamber of Commerce in Paris in conjunction with Bain and Company shows that the country's attractiveness as a place to do business has more than halved since the socialist government of Francois Hollande was elected in May.

The numbers are dramatic. In 2011, 56 percent of US investors regarded France as an attractive place to do business. As reported by France 24 on Saturday, the same survey now shows that that figure has plunged to just 22 percent.

Since the US investors' response to such absurdities as the 75 percent tax rate on income over one million euros is likely to be replicated among other foreign investors, we may be about to witness a collapse in foreign direct investment in the country.

That will cost jobs, reduce potential tax revenues and ultimately harm consumer and business confidence domestically. Great job Francois! Exactly what the doctor ordered at a time of recession and economic uncertainty.

The great tragedy is that when one wages class war, it is usually the poorest people in society that end up getting hurt the most. Rich individuals can move elsewhere. Foreign investors can shift their gaze to other countries. 

But people who work in grocery stores tend to stay put. And when the government adopts policies that are bound to harm the wider economy it is they that take the hit.

France has yet again provided us with a stark reminder that socialism is always sure to make you poor.

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