The Problem with France's Economy | France Economics 

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i was told by a fellow Dutch friend "I really wish we also had protested when they changed the retirement age to 67"

Fascinating facts, photos and figures are presented here in a fast & furious fusilade but the pause bar allows time for a bit of contemplation and digestion. The fact that the economies of Spain and Italy are in worse shape makes me wonder why it was only France that torpedoed the free trade agreement with Mercosur. I conjecture that among the reasons is that the agriculture sector would be disastrously affected more than the other EU nations.

so Goldman Sachs predicts the future within 50 years😂

We are going to be okay, dont worry for us !

What is really funny is that social policies and state intervention are depicted as the cause of all problems, while it was the very source of prosperity in the "30 glorieuses", while the problems exactly appeared when the economy went opened in the 70's and intensified as the liberalisation intensified. Talking about a bias. It almost looks like you're defending something. EDIT : also the ratio debt/GDP is well above 100% now and has been for years. It's funny you did not include that because it would have illustrated the political advise you seem to push.

French retirees have had everything: real estate assets multiplied by 3, a stable job during the glorious thirties and for some early retirement at 55. The next generation has none of that and continues to pay for their high pensions and degraded public services.

One has to live in France to experience just how close to socialism it is while being capitalist. Then one can either marvel at how well its doing despite the above, or despair at how difficult it is to change. Basically there is a big elite in France that is quite oblivious to "the market". It is bred since childhood to reach peculiar French milestones like going to specific prestigious universities that set you up for life and then scoring public sector jobs, or jobs in companies semi-controlled by the government. Also many if not most employees are basically unfirable, which means that often they couldnt care less about doing their job perfectly, just about ok seems to be the norm. And on it goes with many similar peculiarities and inefficiencies.

It all boils down to people’s budget. Saying that France has the highest tax in the OECD doesn’t mean anything in itself, at all. What matters is what are those taxes and how they are spent. Pensions, health, education is provided by the state and therefore represents close to 0€ in a family’s budget in France. Studies have shown that a US citizen pays less or 0 taxes in those departments but end up spending much more on those items per capita than a French for lower quality overall. The real problem is ideology. Recently with the last three governments, a big chunk of tax revenues has been diverted to fostering ´investment’ i.e. subsidy offer instead of demand. The results are ridiculous. CICE, a huge tax cut for companies was meant to create 1 million jobs. It created 10 000 for 40 billion € per year. So not only this money didn’t create jobs, it didn’t raise salaries either, it almost all ended up in profits and dividends for shareholders. Corporate profits have never been higher in France and investment lower. Total, LVMH, Banks all registered profits unparalleled in the entire history of France. Even the East India Company never registered so high profits. A deadly paradox. Worst of all, some even laid off their workforce. Moreover ,in spite of this corporate economic inefficiency, the entire budget would be balanced if France wasn’t the champion of tax evasion and corporate fraud. All in all 80 billion € is missing each year, the exact amount of the deficit, hiding in Switzerland, Luxembourg, the Netherlands and Ireland. What is the government doing? Dividing the number of tax inspectors by half in 15 years. Lastly, energy costs. The French state provided the cheapest electricity in all of Europe, by far. Result of a long genious public investment plan in Nuclear energy. Companies in France, although they paid higher taxes, largely compensated with their energy costs. By joining the European Common Market for Energy, France aligned its electricity price to Gaz, therefore hindering massively companies’ budgets and competitiveness vs Germany. I could go on and on and discuss how a free market in many instances isn’t the solution but the very root of the problem - private highways rising transportation costs, private hospitals draining Social Security funds, private banks refusing loans to ´risky’ new entrepreneurs while investing in products such as CDOs and subprimes, private education and student housing creating a shortage of essential professionals like doctors, railways etc.

In the UK we solved the whole pension problem by just raising the pension age above the average life expectancy. Sorted. /s

French economy is declining because African countries have started to kicking out french coloniser 😂

If a pension system is a Ponzi Scheme, then so is a bank. Both assumption are ridiculous. A Ponzi scheme requires always more and more money coming in, in order to create the illusion of profits. A bank and a pension system just need to maintain stable income and outcome. That's why, in a theorical nation with a fixed population and fixed revenues, a pension system is perfectly sustainable. Only issue here is that the population is aging.

I think you're exagerating. France has issues similar to other countries in europe but its also in a better position than most. It has a relatively high birth rate, much higher than germany for example. Also, you compare france and brittain at one point when GB is litteraly a dumpster fire right now. It really seems like all you pointed out in the video is minor and could be fixed relatively easily as opposed to more existential problems like aging population.

Shares a lot of issues with Italy, although it's in a better shape. I wonder how can you reform the pension system in countries where a large (and growing) share of the populations is made up of retirees or workers close to retirement age, who consider the current benefits as a right they're entitled to... you're never gonna win elections with such proposals

France, despite all being said is... A rich, powerful, civilized country that has as least more than a millenium of existence... Yes it faces challenges nowadays but there were tougher challenges in the past : all were overcome... This country still allows its citizens to earn their living and be free. This is not not so obvious in most countries in the world...

When the word France comes up, we have the millenium Old rehashed British wishful thinking...which is that France is doing terrible... The reality is this: Britain is faring just like France except for the fact in term of worker productivity Britain is lagging France by 15 to 20 pct... As far as the exile of skilled workers, many more britons leave Britain than French leave france . Just check it up! You all brits need to stop obsessing about France and start to ask youself why your country is lagging so many others in term of ... productivity. Maybe an unefficient education system creating too many talking heads...and shop keepers and not enough of what modern economies need?

A lot of interesting points, even though most issues are faced by many Western countries, not just France. Comparing the pension system to a Ponzi scheme is a very weak argument though.

The main problem of France is its democracy. If we look at the last few presidents they had, Sarkozy, Holland and Macron and even at the other candidates that didn't win like Le Pen, Melenchon, we find out that obviously the electoral system isn't working at all, it's making manipulators and great communicators running the country, while the most competents are left entirely out of the political system.

Different generations should learn to compromise their interests, and those with vested interests should not overspend the future of the next generation in order to protect their own privileges

Maybe if they didn’t give 100 billion tax breaks years to their billionaires friends it would help

Attention aux chiffres concernant le chômage! Indeed real numbers are quite higher, it's marketed as such because government needs them to be like this. For example people who are not looking for a job (discouraged) and not in the official system are not taken into consideration. According to some french economists, such as Olivier Delamarche, french unemployment rate is close to 20% (cf. youtube video named "Analyse des différences entre le chômage ressenti et le chômage statistique par Olivier Delamarche").

I don't care what nobody says,....I will always love French fries. 😋😋😋

Tax revenue was reduce by 20 billions / year in 2012 with CICE. In addition we give money during covid in order to support major economy, majors companies only provide dividend to shareholder with our public money (annual record of dividend during 2020 and 2021 was done by CAC40 company). And moreover their is an inheritage problem, indeed rich person are rich not because of their incredible skills or work but only due to the fact that their parents where rich, in UK or other european countries this is not the same level as in France. And to conclude, majors companies only paid 4,5% of tax on their benefits (due to tax loopholes, actually 465 !) however small companies paid 25% of tax on their benefits !! This is one of number of measure that lead to current fiscal deficit in addition to bad spending in several domain.

Why do you say that the country has become more liberal since 1983 while the weight of the governement in the gdp has risen from around 30% to around 60%. It's a sincere question and yes I am french. Would love to have your feedback. Many thanks

Their problem is they have created an economy of the poor, business creators make business for the poor, and tax laws are about taking money to whoever earns too much or is too successful with his business. Plus their strange mindset about money : it’s good to have money, but terrible to have too much. And only your neighbour can say when it’s too much.

You did in 10 minutes what we can’t explain in 2 hours to our friends and family here in France, thank you

Regarding unemployment, there is mismatch in the job market because far too people are going to University. Few reasons for that, first it's free (some students even get paid to go through subsidies) , second universities are far too lenient with students who are not made for advanced education, third we have cultivated the belief that a bac+5 is a life goal and the most prestigious thing one could seek for. As a result, we have a large contingent of graduates who feel entitled to a well paying jobs when in fact their degree adds little to none to the economy. There should be way more people going into trades and the current shortage some sectors are facing rn could be adressed by pushing more students to trades (and not only the least performing ones), instead of importing immigrants in proportions that cannot be controlled and integrated to the society. While stopping mass immigration won't solve all the country's problems, far from it, it is no brainer to reduce the current numbers in order limit the stress on the public services and the housing market. Also, people hate to admit it but immigrants drive wages down. France is becoming a country with 3rd world country wages, with the cost of living of a first world country. Regarding the current pension systems, it is bound to collapse. But boomers want to their last piece of the cake and the youth is too financially uneducated to see where this is heading. The country is old fashioned. Companies are still run like in the 90s and the heritage of the Age of Enlightenment is a burden on our education and capacity to change.

Can you do one about Latin america? I think they are very promising countries (fertility, work force, natural resources) etc. Or one about SE Asia ? It'd be interesting Good vid!

Didn't know France is so similar to Turkey in the sense of education, creating too many university graduates but unable to create proper jobs for them. Even worse in Turkey ofc. UNiversities are mostly terrible so all they do is make their graduates think they are overqualified but the fact is they are both underqualified and don't have any work aligning with their educations neither. Same with pension system too, it's way similar in turkey too but since Turkey is still a young country but at some point same problems will surface when the born rates decrease. I hope by then Turkey could solve their democratic, systematic problems...

Totally biased video France gets - carbon free cheap energy - solid innovative environment (mixtral) - well trained and cheap STEM students - integrative - not "diverse" - République system - good Macron leadership Keep calm UK propaganda

Yeah yeah yeah, it's the same set of problems that have Italy. But unlikely Italy, France have no plans to face them.

Demographics in France are better than Italy or Spain or Germany. Also better than United Kingdom.

It's not the best analyze ever

France is a beautiful country in terminal decline. Sadly the UK is similar. France could stop the boats yesterday - automatic return which destroy the economic model of the transit of illegal aliens across UK southern border. France will not do this but like the UK is playing a doom loop only with more sunshine and better beaches.

Very inccorrect assumptions. Seems a lecture of the Chichago School promoting for trickel down economics.

The problem with France's economy is the EU

Problem with France economy : 5.5 million civil servants + 500k people working in associations paid for by the state + over 3 million people living on welfare for 24 months = 46% GDP is taxed by the state which spends 52% of GDP. Total failure

Very biased video made with a liberal anglo-saxon mind which cannot understand how a post-war social and welfare State works and perdure. Here are few arguments to elaborate : - Pension system is not a ponzi scheme if the birth rate of the Country is good and the lifespan is stable : 1 individual pays for another : the big problem here is that birth rate is CRASHING all over Europe when lifespan has never been that high - Also the French institution (the COR) literally designed to monitor and supervise the pension system declared economically and mathematically that the system will not be in deficit with a probability of 90% and if it's gonna be 1 the amount of debt will be ridiculously low and 2 it will no be before 2040. Therefore, the Reform made by Macron was purely and solely political with the idea that "people need to work more" - An other critical point are all the issues linked to the EU : Because Germany is a bigger country in the Union it has more decisional power and because their economy it's nothing like our, when they are making a decision we are often fu**d + we are the biggest giver of financial aid. - The best example of that it's our energy system : we are one, if not, the best Country in the world in therms of nuclear energy and nuclear power plant : that makes our energy greener, cheaper, more efficient. BUT because of the shared energy market of EU, we cannot event benefit from that. - One thing true for sure is all the information you give concerning diploma and youth unemployment : that's for sure is a problem, because we stay with the old mentality that "without a bac + 5 '(Master degree) you're nothing" then we have unemployed overgraduate youth with other sectors considered as "unqualified" which cannot find people to employ Finally among others factors : - yes our policy against covid was REALLY expensive (we literally called it "whatever it costs") and that put the Country in deep sh*** - The problem is not that we are paying that much taxes but that the tax bases and steps are so broken and badly done : if you want an example of that look at the inheritance taxes : from 1.8 million to an infinite amount you're gonna pay the same tax BUT even if your inheritance is less than 8 000 € you're gonna pay 5% to the State. This is clearly fuc*** - Immigration : it is happening to all Western European country (especially Italy, Uk and France) and it's really not helping

Same speech from anglos 300 years ago : "France will collapse", 300 years later, she still didn't and her people have far more benefits than the average person in the US or UK. (where if you're not rich, you're nothing}

Real problem of the country is industry, industries were deported to 3rd class country like china, bengladesh or bulgaria to cut the production cost. So we lost everything Jobs, Skills, added value/GDP all this so that 1% of the richest people can make more profits and earn more (mostly because of taxes). Our Biggest problem is mondialization

France has the highest taxes in the world and if it could, it would tax oxygen.

This video is just French bashing

I never believe these predictions about growing economies jumping so far up the scale. They face huge obstacles to get that big.

As a french I can assure you one thing, we are fucked

The fact is that I left France because I do not want to pay for somebodies' pension, and nobody will pay for mine in the future... I make 3 to 4 times more money in the US than in France! By doing the same job!!! And you know what is worse??? That consulting hours from my colleagues that work in a French office, are almost as expensive as my consulting hours working from an American office. We French are very good at maths. And I do not understand how we deny the fact that the current economy is unsustainable. I dream of returning to France but will not do so until I am paid fairly. In the meantime, I'll keep working abroad and voting from abroad for somebody that tries to address these major issues.

No more colonies to loot

Southern France needs Investments. Pension System or the welfare state is not a hindrance for any growth. France did chose to go with High Taxes but at the same time forgot to reform banking & finance sector that degenerated economic growth causing the deterioration of the French Living Standards. The Private Capital is not into Banking and Finance Sector with any attractive incentives for growth and investments in different regions of France. The reliance on small and medium industries are kind of lowered in France that couldn't afford the market demand nor the growth as a means to absorb the human talent for prevention of Brain Drain.

This is France, it is a place in southern Britain.

We get education longer, live much longer. So fewer years to earn pensions that must last longer (more years as old). Incerasing the retirment age is a given necessity.

There is no problem with France economy , it’s just that they had been living with African money , free money for froggies while producing nothing

There's like, maybe a third of this video that's true. For starters, even the thumbnail is extremely misleading, as the entirety of Europe is stagnating economically. France is not going down while Europe is going up, in fact, it's pretty much exactly the middle of the (European) pack in almost all metrics. The situation is difficult, yes, but there's hardly a country that has it easy at the moment. The USA is one of very few countries that is doing well economically, and it's mostly because they have used their post-WW2 diplomatic dominance to build the world's systems in a way that benefits them. The game was never supposed to be fair. And despite that, they still offer shit all to their citizens. Shit car-centric infrastructure, no public transport, no healthcare, no unemployment benefit, no pension, nothing. Despite losing much of its influence and power after WW2, France carried on as a strong economy, with an impressive welfare system, and mostly started stagnating around the time corporate greed started to win out over the citizen's interests. The amount of upaid taxes by the large corporations and the richest people in the country could easily pay for all of France's welfare and then some. But now, the profitability of Capital has increased, the value of real estate has shot up, but it only results in extra wealth in the hands of a few. You were a rich landowner in the 1970s? Congratulations. Your father was the CEO of a major company? Congratulations. Everyone else? Sorry, your salary is too busy filling shareholders pockets, and you can't own a house, you can only rent. It can very easily be turned around with political will. But the ruling corporate class will never allow it and blame everything on migrants instead. Migrants that they themselves let in because they were a cheap, massive workforce, resulting in even more profits for corporations. They have played us for absolute fools.

It was already coùmical that the video considers that having a flexible labor market is preferable to protect workjers right, but then there is the ponzi-scheme comparison, with which we reach deeper into stupidity.

Et dire qu’il y a des gens qui ont cru que Melanchon allait arranger les choses

10 minutes to show that you can say everything with numbers. Unemployment does not show quality of life Protest is presented as an issue whereas it is just french democracy application Being able to get money from the government during retirement is displayed as a ponzi scheme and personal saving as an ideal while giving money to the government all long of its working life and get it back during retirement seems beneficial to both parties. In brief this is an over capitalistic analysis that forgets that behind numbers there is people and why work hard like in the US if you cannot afford a place to live whereas in France you will get help when needed and will be able to help in return

Very interesting video, I hope France can overcome its problems!

France is clearly collapsing 😢

Your comments around the 4:00 minute mark are self-contradictory and don’t make any sense. You say there is demand for post graduate labour, then say that many new graduates are overqualified. Which is it?

I am French entrepeneur, when I left France in 2014 the Hollande gov took 75% of my dividends over a stack of 8 complex taxes. I had to care for my future and the future of my kids and I never regretted it. But I am so sad to see my country collapsing, it gonna be long and hurtful, there is now no chance of things getting better

2:31 This is the change that initiated France's descent, the breaking point... Relocation, privatization and massive sales of all historical infrastructures and industries over the past 50 years, to an extent unprecedented in Europe since then (during the COVID crisis, people suddenly realized that we were incapable of producing simple masks, and there were no longer any manufacturers in France...). The politicians who are spending for the benefit of their banker buddies are the same ones who are managing public policy on health, unemployment and pensions, and who want to destroy our social system (with the support of the EU). Just to say... more Capitalism isn't going to make us any better off.

It may seem odd, since we french have a reputation for pessimism, but I have more faith in my country's future than most other nations. For instance, I'm pretty convinced that te UK will see Scotland go, hence not being the UK anymore. Same goes for child birth ratio. What good will it do south Korea or China to have economic output if it goes with a rapidly shrinking and aging population ?

The issue is, france is a socialist country, with lots of leftists. Immigrants come, and aboriginals leave

👍 New to the channel Hello from the UK 🇬🇧

Still much better than brexit 😅

I think France is one of the best demographically positioned in the EU with a high birth rate. And they are much more tech forward than their neighbor Germany. They just need some labor market reforms, can easily become the strongest economy in EU.

Demographic bomb everyone has it you just don’t have the land expand

France without Africa is nothing!

Their problem is (mainly) that they always think that they are more important/bigger, that they actually are...

Could you do a video on the Turkish economy possibly? I think it’s an interesting topic due to the consequences of the unorthodox practices and kleptocracy.

The analysis is simply hilarious.

Betrayed by our politicians, betrayed by the EU, betrayed by our elders. Welcome to France 😇

In France you have the students who have no work and go across the globe in search for fortune, the pensioners don't work the rich go to tax haven countrys and only the middle class is paying the bills every month to exist. The french labour force is payed next to nothing. With the euro prices of living skyrocket, inflation of the euro, high taxes, alot of national debt 2000 billion so two trillion. Bref😂

that's such a good channel!

La France est le deuxième exportateur mondial d armement premier fournisseur européens en électricité première pays touristique mondiale on manque de main d'oeuvre première fournisseurs en produits agricoles européens première production électrique nucléaire au monde par habitant la première producteur européen automobile 😅😅😅

Those aspects are just the symptoms of a much profound problem: the acumulation of undue privileges, corruption and lake of democracy are the structure hidden behind the commercial and public deficits !

Looking at all global crisis some or the other God should take avtar & save humanity as some are out of human control

Migrating to France does not inherently cause an economy collapse. The impact of migration on an economy can be complex and multifaceted, depending on various factors such as the scale of migration, the skill levels of migrants, and government policies in place. It is important to recognize that migration can have both positive and negative economic effects. On one hand, migrants contribute to the labor force, often taking up jobs that are in high demand but have a shortage of native workers. This can help fill gaps in the labor market, boost productivity, and strengthen economic growth. Additionally, migrants can contribute to the economy through their consumption patterns, as they spend money on goods and services, contribute to the housing market, and pay taxes. This increased consumer spending can have a positive impact on local businesses and stimulate economic activity. However, migration patterns can also present certain challenges to the economy. If the influx of migrants is sudden and uncontrolled, it can strain public services such as healthcare, education, and housing. This can place a burden on local communities and result in an increased demand for resources, potentially leading to a strain on public finances. Moreover, there might be concerns about job competition and wage pressures. If large numbers of low-skilled migrants enter the labor market, it could potentially lead to a downward pressure on wages for certain sectors or occupations. This can create economic tensions and impact the overall labor market dynamics. To mitigate the potential negative impacts of migration, governments can implement policies to manage migration flows effectively. This includes ensuring proper integration programs, targeted skill-based immigration policies, and investments in public services to accommodate the needs of both the migrant population and the host country's residents. In conclusion, while migration can have both positive and negative economic effects, it is important to consider the context and various factors involved. Simply attributing an economy collapse solely to migration is an oversimplification of a complex issue. Effective management, policies, and integration measures can help maximize the potential benefits of migration and minimize any potential negative impacts.

J espere on va se barrer de l UE et de l euro le plus vite possible

Get rid of pension and have elderly people move back in with their kids like humanity has done for thousands of years.

Failing to mention the African neocolonial states pulling away from France is a big miss in this analysis. They are loosing big in their exploitation of west Africa. As they are loosing to china and coups.😅

Well the real pain for the French economic growth is the "charge salariale et patronales" since an employee costs 100% more to the company than the salary he is paid. With such an expensive labor force, growth is bound to be low

Anglo saxon propaganda... france is far better than england 😂😂

France has been milking north Africa for decades😡😡😡that's about to end 👏👏👏

The problem in both the EU and France is the visible hand 🫳🏻💶

The invisble hand of russia

On est mal mdr

No exploited African countrys no good economy France. Deal with it!

As in Canada and many other countries in the West, citizens everywhere must realize that they have to work a few more years in life to make up for living longer and the rising cost of health care. Health care technology is much better now, but our lifestyles are too undisciplined ( obese and not enough exercise ). RS. Canada

looking forward to the video abour the uk

The problem of France, it's just a difference of her paradigm versus English countries. Defending a social policy maintain in a confort zone where working hard means earning lot for lot of taxes, so ambitious persons try their meritocracy and chance in English countries, which receive qualify, educated and hard workers frenchies. So the problem of France it's her lethargy and dependence at social aids who maintains everyone in a kind of laziness been in a confort zone.

the "access to employment for minorities" as a reason for the decline was a nice one ahahahhahah, you miss the elephant in the room i am afraid

Great Vid! Glad to see your channel is growing

Frexit!!! this EU it's not good to France

Frances colonies were, and still remain, the reason they prospered. They still have colonies via full control of other independent countries' finances!

Please make a video about Spain!

Math is math. It works the same way in every country, every system. It constantly amazes me how few people can do it. The one thing that helps France (unlike Germany) is its energy independence via nuclear power.

The trajectory of France's decline appears poised to intensify, driven by the increasing autonomy of former West African colonial countries in managing their economic interests. This trend signals a significant shift away from historical patterns of French dominance and economic exploitation within former French colonies.

Today economics sounds just like a religion. Beleives make reforms and reforms shall improve. But never should you question the object of this improvement. As long as S&P is happy. When standards will also check KPI other than basic economics then the mankind will finally "improve". If you do consider money is the driver, surely you will soon be on the passenger seat.

The problem with France economy is that it's a colonialistic country still today. This and the fact that uncle Sam allowed them to have the nuclear are the only reasons this country is rich. Otherwise they wouldn't have gone so far with their 36 hours work per week and their huge welfare

that was a great promotion of liberalism ... not sure it is what frances need, but it is a point of view. what you call a ponzi scheme is solidarity ... Of course, private insurance and brokers cannot get the people broke, therefore standard liberalism ahs an issue with it. and the deficit, comes from the payment cuts granted by governements to the big corporations and itself ... would they pay their share like small businesses, the system would have no benefit, but the shareholders would make a bit less money ... The fiscal deficit is equivalent to the subventions given by Macron to the big corporations. these are not being used to create jobs but to pay dividends to shareholders that escape the taxes ... kind of a welfare payment by the french people but not for the french people ... at minute 8:30 please add 160 Billions subventions to Big Corpo for not creating jobs in comparison to the 25 billions to the pension and social benefits (health insurance and old age insurance actually) ... you talk about important investments (education, infrastructure ...), these are the main savings seeked for by the governements, not the subsidies to private companies

Again we arrive in my main proposal of building space travel.