Frances Civil Unrest: Economic Struggles of a Global Power
- France is the second largest economy in Mainland Europe and a regional center for finance, manufacturing, and other industries such as tourism, fashion, nuclear energy, and education
- 31 of the world’s biggest 500 companies are based in France
- Civil unrest began in January due to an increase of retirement age from 62 to 64 which has caused strikes among essential workers including energy grid operators, teachers, public transport drivers, dock workers, and garbage collection personnel
- These strikes have ground the economy to a halt as many industries are unable to operate without public functions
- National debt/GDP is approaching 100%
- This debate has been passionately had at a time when the economy can least afford it
- This situation raises questions about economic arguments for and against demonstrations, what we can learn from France’s problems that relate to our own economies, and if this could kick off another Eurozone crisis.
French Retirement Reforms Spark Public Unrest Over Controversial Tax Changes
- The French government has taken emergency action to push through unpopular retirement reforms
- The professor at HEC Paris consulted for this video offered insight into why control of the working population is an important issue for advanced economies with low birth rates
- These countries need either more capital or labor to achieve economic growth, and France has a high labor force participation rate due to its strong work protections
- The mandatory pension provisions are funded by payroll taxes from employers and employees, but now the government is changing when people can access this money causing public unrest
- There are two solutions to funding pensions – raising retirement age or finding another way.
The Surprising Economic Strength of France in the Face of Adversity
- France is the seventh-largest economy in the world
- It has a GDP of 2.9 trillion dollars spread over a population of 67 million people, with a GDP per capita of 43, 659
- It is a major well-respected democracy with robust legal systems and well regulated markets
- The economic growth has been stagnant over the past decade because of the Eurozone crisis, Brexit, and Covid
- France is surprisingly industrious building everything from aircraft to handcrafted luxury fashion pieces, and is a major service center, tourist destination and innovation hotspot.
World Leading Economists Speak Out: Audio & Video Features Released to Public
- This video presented free and audio-only versions of videos featuring leading economists
- Multiple interviews with world leading economists were conducted
- Viewers thanked for watching.