Monday, July 7, 2014

The Predictable Outcome of Francois Hollande

The French elected a socialist president a few years back -- Francois Hollande.  His main message was an Obama theme -- raise taxes on the rich.  The predictable results: 1) the rich moved; 2) the economy went from bad to worse. 

France is now on a race to join Italy and Spain as permanently stagnant European economies.  None of this has anything to do with the Euro, as the media relentlessly argues. 

When you outlaw free markets -- pretty much the situation in France -- you get economic stagnation.  The US has rediscovered this same pattern in producing the worst recovery from a recession in US history.  Even the recovery from the "Great Depression" of the1930s showed more spark than this one until the effects of Roosevelt's National Recovery Act created a 1930s style stagnation.

Nowhere in the history of the world have poor and middle income families fared well when free markets were suppressed. We are, once again, demonstrating this on a global stage.  Only free markets produce vibrant economies.  Big government benefits the rich and powerful, but leaves the average citizen defenseless.

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