Macron’s Pension Gambit Sparks Revolt, Pushing France to the Brink
Bloomberg reports Macron’s Pension Gambit Sparks Revolt, Pushing France to the Brink
The French President is facing increasingly violent protests that risk scaring off the investors he has spent the past six years courting.
It’s the stuff of nightmares for those who promote the new, dynamic France: Giant mounds of stinking garbage bags overflow from bins near the Notre-Dame cathedral in the heart of Paris, violent demonstrators in Bordeaux set fire to the majestic doors of City Hall and teargas-laced battles break out in major cities between ranks of riot police and protesters who set alight whatever they can lay their hands on.
Such images flashing on television screens across the globe show a country set back to its demons of angry street protests that brought political crises and economic inertia to successive French presidents. And the trigger for this latest regression is the architect of change: Emmanuel Macron, whose stubborn insistence on ramming through an increase in the retirement age reignited labor unrest, deepened fissures in parliament, nearly brought down his government and now threatens paralysis for the four remaining years he gets to stay in office.
What Happened?
President Emmanuel Macron upped the retirement age from 62 to 64 and placed further restrictions on collecting a full pension.
He did this unilaterally, by decree.
Under the French constitution, the president can enact laws without a vote in Parliament if he can survive a vote of no confidence.
Macron barely survived a vote of no-confidence by just nine votes. 278 voted in favor, with 287 needed.
Explaining the Issue
Where Socialism Leads Disaster Follows
Calls to Resign
Economic Illiterates Support the Protests
The number of economic illiterates on Twitter in support of these riots is stunning.
Why the French Are Angry About a Plan to Retire at 64
Please consider Why the French Are Angry About a Plan to Retire at 64
The world’s population of people aged 60 years and older is expected to double by 2050, according to the World Health Organization, while fertility rates are in long-term decline. The financial strain is challenging old-age support systems and leaving many countries facing tough choices about raising the age of retirement, cutting benefits or lifting taxes. Pension shortfalls will be the equivalent of about 23% of world output by 2050, the Group of 30 consultancy estimated. One key measure is the old-age dependency ratio — the number of older people compared to the population that is working age. In Europe and North America, that ratio will be about 50 per 100 by 2050, according to UN forecasts, a rise from 30 per 100 in 2019. In short, we’re on a trajectory toward a smaller share of people paying taxes and a higher proportion drawing pensions. By 2035, the basic US system known as Social Security will no longer be able to cover payments, forcing a 20% reduction in benefits, according to its trustees.
US Social Security
By 2035, the basic US system known as Social Security will no longer be able to cover payments, forcing a 20% reduction in benefits, according to its trustees.
That is hardly the worst of it.
Many public union pension plans in the US, especially politically corrupt states like Illinois, are realistically insolvent.
Yet, the fools in Illinois voted to enshrine pension promises in the constitution.
So yes, France is a prelude to what’s going to happen in the US.
PATCO Solution
I support the Ronald Reagan approach.
Fire all public union workers who strike. In fact, public unions ought not exist at all in the first place. That is where the real problem is.
Now we are saddled with pension promises that cannot possibly be met all because corrupt politicians get in bed with corrupt union leaders screwing the ordinary taxpayer.
For discussion, please see Democrats, Here’s Your Chance to Get Rid of Bad Police
Ronald Reagan smashed PATCO, he did not go far enough. He should have smashed all the public unions.
The fact of the matter is simple: Public Unions Have No Business Existing: Even FDR Admitted That.
This post originated on MishTalk.Com.
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Mish
You are vastly overeating the capabilities of the military. 1- this is a very large country. That’s important because the size matters in such a case. Ex: how can they possibly cover any real ground with all that weaponry? 3k miles east to west alone. The entirety of the global armed forces couldn’t cover but the tiniest fraction of the country. 2- 90% of the military (this being a generous estimate) is incompetent beyond belief. 3- If 1/10th of 1% of the population just showed up, the entirety of the military/lawdawgs would be doomed. This just by numbers. 4- The problem isn’t that we’re outgunned or face tough odds. The problem is cowardice. And the desire of slaves to stay slaves. Enjoy finding reasons to be afraid. The punks you’re afraid of don’t frighten men. You buy into their projections to convince yourself to do nothing. Fear and liberty can’t co-exist. I’ve trained the lawdawgs in my area because I fear nothing in this, or any other, realm. Cops are cowards. Armed against a largely unarmed population. And still scared to death. And you fear them? Pathetic.
It’s a global problem resulting from a number of inexorable
mega-trends. (1) rising energy costs (2) ageing populations (3) resource
depletion (4) fragmenting supply chains (5) environmental degradation (6) rising
global debt.
Each trend on its own would be a big problem, but combined
I just don’t see any solution in sight. Each trend is helping reduce productivity, and combined they are choking the life out of the global economy. I don’t have
an answer, and neither do our Lords and Masters (although they insist they do
and come up with solutions that probably do more harm than good)