Jobs and unemployment

European elections are upon us. In a series of articles, IREF is helping to inform voters’ decision. Last week we analysed attendance rates by voters at elections and reasoned that European elections may be bad for democracy. It’s now time to turn the tables and consider attendance rates of parliamentarians at the EP. What does the record reveal about their attitude to work?

Following lacklustre performance at local elections, the French President has appointed a new Prime Minister. Is it a good tactic, and will it change anything?

Of all the shortcomings of the Italian economy, youth unemployment (40%) is the most worrying. The new Prime Minister, Matteo Renzi, took up this issue through labor law reform since it was outdated and harmful. Will he succeed where Mario Monti failed? Yet what happened at Fiat’s may be hopeful.

A company is mismanaged when some indicators are in the red such as factory costs higher than those of its competitors; highly unprofitable activities; general and administrative costs much higher than those of its competitors; too many employees in too many locations; outstanding wages and incredible social benefits; various waste; assets sold at low prices and no return on investment; lack of reaction to badly needed reforms.

If the Banque de France’s 2012 financial statements are compared to those of the Bundesbank (German Central Bank), it can be argued that the Banque de France is very poorly managed.

It seems logical: economic growth resumed in the United States, and since the United States used an economic stimulus thanks to budget deficits, it could be believed that public spending lead to recovery. Indeed, but… it is in the sectors that did not benefited from the Federal money that new companies and new jobs were created. And in States that have reduced their public spending (as in some European countries).

France hosted in the November 15th week a summit dedicated to the “Fight Against Youth Unemployment.” This is an excellent initiative for a country where the 16-25 years-old population reached a 26.1 % unemployment rate. Yet, France should be doing what is being done elsewhere, especially in Germany, where the rate of youth unemployment is three times lower than in France: 7.7 %.

About a month ago, the United States experienced the “Shutdown” for 15 days. Several jurisdictions were closed and about 800,000 employees have been laid off because no agreement was reached on the budget. The Democrats and President Obama cried about the paralysis of the economy in order to end the “shutdown”. In fact, the US economy has not been affected by the shutdown. More: the US economy even experienced an upturn. According to the data on the third quarter, U.S. GDP grew by 2.8% and more than 212,000 net jobs were created in the private sector! Long live the “shutdown”!

“The youth is the utmost priority of my mandate”. Thus spoke François Hollande on January 23, 2013, when wishing a happy new year 2013. “Happy” may not have been the right term, “subsidized” should have been better. Indeed, when saying that 500 000 young people below 25 years-old do not have a job, that 25% of them are unemployed, the French President does not think that entrepreneurship is the solution. On the contrary, for him the Government must spend more money to help create jobs. And President Hollande is generous with public money: no less than 5 billion euros will be wasted on inefficient job policies!

The IREF with “Contribuables Associés”, the largest French taxpayers association, published a study showing how fiscal pressure destroys employment. The main figures of the study reveal the Government lethal action on companies and jobs:

– 12.2 bn € of new corporate taxes
– Tax burden making a 0.5% GDP decrease
– 99.500 jobs destroyed in 2012, 160.000 scheduled t be destroyed in 2013
– 70.000 jobs destroyed because of tax burden increase in 2013
– 21.5% in big companies and 78.5% in middle and small business

Read the study in French: La Boîte à outil de François Hollande détruit l’emploi

These figures, calculated by the IREF, point out what is happening in the United Kingdom governed by Premier David Cameron. Since the Tories arrived in power in 2010, between 500.000…