Thursday, June 09, 2005
French economics: I must confess that I don't pay close attention to the internal workings of the French economy. I know two things about it, and they're allI think I need to know. First, French farmers are always protesting something by using their tractors (both of them) to block roads. Second, the French economy's default status is "broken."
So, I was curious reading this story last night in the San Diego Union-Tribune on an effort to improve the French economy.
France's new premier tries to lift economy with $5.5 billion plan
Package promotes hiring in short term
OK, so they're going to spend a ton of money to get people off the unemployment rolls -- how exactly will this work?
The new measures include a 1,000-euro ($1,224) bonus for long-term unemployed who return to work and making it easier for small firms to fire staff.
Making it easier for small firms to fire staff? How does this promote hiring? Do small firms ask for a kickback on that 1,000 euro bonus to hire that new applicant and then turn around and fire someone they currently employ?
This doesn't sound like a plan to create jobs, it sounds like a scheme to shuffle around the employment status of millions of French workers.
The only reasonable explanation that I heard someone come up with to explain this plan was that it would boost hiring for cardboard box manufacturers -- those newly-fired employees will have to have something to put their stuff in when they're cleaning out their desks.