France: Budget Chaos = Tax Chaos = Civil Chaos

The Socialist block of the EU is descending into complete chaos, London, France, Germany are seeing unprecedented riots and the respective governments have no idea what to do!   Macron did nothing, then he gave, in, now he thinks that in order to show ‘strength’ he must fight the yellow vest movement.   And stupidity reigns as he has lost complete control of his country.

In a speech to the French people, Macron offered no solutions, and merely framed a slew of empty words:   “We can do better, and must do better”, “I believe in us”, “Truth, dignity and hope”…  But as he spoke the rhetoric glanced with the impact of a spitball, protests continued unabated, and 150,000 police and security were deployed to try and quell the immense volume of discontent.   MERDE!  Police have been caught on video punching demonstrators, clubbing them, and kicking them on the ground.

Polls indicate Macron now has a disapproval ranking of 80%, and calls for him to step down have gone viral.   In the midst of the onslaught, France’s economy will likely suffer incredible economic hardships as tourism is at a standstill and businesses scurry to defend their wares.   Looting is rampant, and vandalism is spiking fears that a civil unrest could devolve the country into chaos and bankruptcy.

France’s government has not recorded a positive spending budget since 1970.   Since 2002, government health spending has doubled.  Government spending is roughly 1.29 trillion Euros per year – $1.5 trillion.   The US has five times as many people as France and spends four times as much per person for government expenditures.   As a percentage of GDP, France’s military spending is a full percentage point below the US at 2.3.  As a percentage of total world spending, France’s military spending is 1/10ththat of the US.  The discrepancies are enormous.  If the US were to stop footing the bill for the EU countries through NATO, the budget deficit of France would be crippled.

Germany is even worse.  Their military spending is a mere 7% of what the US pays.   Yet Germany’s population is 24% that of the US.   The US picks up 35% of the total world expenditure for military, basically supporting 28 EU member states, Australia, Canada and Japan.

If the US relegated NATO spending to the countries it defends, and simply quashed our share completely, the redistribution to our military would be roughly $310million.   Total economic and military assistance to other countries is roughly $45 billion with Afghanistan, Israel, Egypt, Jordan, and The West Bank receiving the bulk of the shares.

If the US became sovereign in its truest sense, we would have at our disposal $45.3 billion additional funds that could be allocated toward military personal salaries, housing, and medical care.   If all the funds went to active military personnel, that would provide each one with an additional $35,000 per year.

When European governments cry foul on Trump, when they ridicule and malign him, they stand to create an irreversible economic spiral for themselves should Trump decide to revoke their subsidies.   Our allies are not necessarily – our friends.

But then, what we are witnessing is that these governments are not representing their people, they are fake, they are props, likely put in office with the help of voter fraud.

The gender pay gap in France remains unchanged since 2000.  Wealth inequality in France shows an constant increase for the top 1% and 10%, despite media notions that France is a country of equality.   While their education spending is a large portion of the government budget, the disparity rises as the proportion spent on University education far exceeds formative education, and thus the top tier benefit from those expenditures.

The youth unemployment rate in France is 21.5%.   By comparison, the youth unemployment rate in the US is roughly 8%.

Perspective:   The minimum wage is France is degraded by age.  Standing at roughly $11.5 per hour, for those between the ages of 15 and 16 it is 20% less, and for those 17 to 18 it is 10% less.   An average workweek is 35 hours – on a monthly basis their earning power is 12.5% less.   The average monthly take-home salary in the US is 42.67% higher than in France.  The price of buying real estate is 400% higher – in France.

Taxes in France are exceptionally high.  A self employed person can expect to fork over 70% of their income in taxes at the base level.   Employees pay 22% into Social Security, deductions and exemptions are significantly less available, the top tier tax rate is 45% and applies to anyone making over 152,260euro.   They have local taxes, residence taxes, land tax, professional tax, gift tax, inheritance tax, income tax surcharges, wealth tax, VAT tax (20%), capital gains tax, property tax, and the infamous petroleum tax.

And still – despite paying little for their military, which consumes over15% of the US budget, France operates on a budget deficit and has for the last 50 years.  I think Ocasio-Cortez would fit right in.

This is why the Yellow Vests are protesting!

Macron – A Hero in France?

The German media is hailing Macron’s term as President of France as a grand success! He’s a hero! He’s a saint! He has accomplished what no man has done before and as a result his approval rating is at an all time high! Yeah!! Or not.

What has Macron accomplished that makes him worthy of such accolade? He has made a few tax reforms and a labour reform or two.   The tax reform is to reduce the corporate rate from 33.3% to 25%, to introduce a ‘progressive tax rate’, and abolish property tax rates. Some of these overhauls will phase in as of 2018, others will phase in over 5 years, including the corporate tax rate reduction.   Many of his tax reforms were simultaneously imposed by Trump, however the reception of the German media was quite hypocritical.  In fact, they were downright irate!  How dare Trump!

Labour reforms include making it easier to fire people, and lifting some regulations although the 35 hour work week and the retirement age of 62 remain in force. Yawn.

As a result of Macron’s massive reforms, France’s GDP rose to about 1.6%! WOW! The only problem, the GDP was estimated to rise to this level in 2014, three years before Macron was elected.   So how could he possibly be anointed with this accomplishment?

France holds an unemployment rate of 9.7%, and a youth unemployment rate of 24%.   It’s debt stands at about a third of the US, yet it’s GDP is only 11% of that of the US, and public debt is 20% higher.   Yet, somehow Macron is a genius and Trump an idiot? How does that work?

Macron’s proposal claims that the ‘source’ of revenue to cover these dramatic reforms will come from freezing government wages, a reduction of 120,000 public sector jobs, and a reduction in subsidies to French regions.   All of which will increase – unemployment.  Hmmm.

Merkel, Macron, Spain, Italy and Belgium all voiced major protests regarding Trump’s tax reform because they felt it would reflect in their own economic rosy development picture.   Which is true.   In addition, if Trump follows through with cuts to the UN and NATO, Europe will have to provide for their own military, increasing budgetary costs while already operating at a deficit.  The US has been subsidizing their militaries for decades, by the same taxpayers that the French consider unworthy and American racist, white, elite, Deplorables.

Macron’s approval rating is also subject to interpretation fluctuating Yugely depending on who is conducting the poll. Strange…  Some claim he sat at 60% when elected. Others report he tanked to 50% as of September only to rebound to 52% today…   That is according to the pollster, Ifop, a market research firm that sells polls to political parties.   But other pollsters claimed that Macron’s approval rating was 30% as of September, a far cry from the Ifop polls. How could that be?

Ifop is headed by Laurence Parisot, a woman, who also happens to be on the board of PNP Paribas. Paribas is infamously linked to the Rothschilds, the same Rothschilds who bought Macron and groomed him before planting him into the fray for election fodder.

Swaying public thought, the altered approval rating is simply another means of creating fake news.

France’s largest source of revenue is it’s chemical industry accounting for $73 billion in annual exports and which includes a cluster of US companies including; DOW Chemical, Exxon, DuPont, and LyondellBasell.   If those companies would decide to repatriate their stream back to the US per the revised tax reform instituted by Trump, the dent would be felt by France’s economy.  Hence the massive fear invoked in the EU for Trump and his reforms.

While the tax rates of both France (phased in over 5 years) and the US have been lowered, there does remain a giant thorn, the cost of labour, the work week, and unions. According to one company that was being asked to open shop in France, this was his impression:

Maurice Taylor Jr., head of the tyre company Titan International did not mince his words:

‘”I’ve visited this factory several times. The French workers are paid high wages but only work three hours. They have one hour for their lunch, they talk for three hours and they work for three hours. I said this directly to their union leaders; they replied that’s the way it is in France.”

Anyone…Anyone?