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French Industrial Output Declines Unexpectedly

From Bloomberg News:

French Business Confidence, Industrial Output Decline

By Mark Deen | Dec 10, 2012

French business confidence and industrial production unexpectedly declined as President Francois Hollande grapples with a budget deficit and an economy that is on the verge of recession.

What is "unexpected" about it?

Sentiment among manufacturing executives fell to 91 in November from 92 the previous month, suggesting gross domestic product may fall 0.1 percent this quarter, the Bank of France said today. Industrial output dropped 0.7 percent in October, leaving it down 3.6 percent from a year earlier, national statistics office Insee said in a separate release.

The declines show the economy is on the edge of its second recession in three years as Hollande struggles to cut the deficit and improve competitiveness…

And never mind that he has also increased the taxes on the so-called wealthy to 75%. A detail that is not mentioned once in this very long article from Bloomberg.

Meanwhile, however, some Frenchmen are noticing.

From the Agence France Presse:

Critics savage Depardieu’s new role as tax exile

10 December 2012

AFP – French politicians reacted with dismay on Monday after it emerged the country’s leading actor, Gerard Depardieu, has taken up the role of tax exile in neighbouring Belgium.

The move is the latest chapter in the career of a star who is rapidly becoming as famous for his erratic and sometimes controversial behaviour as for his achievements on the silver screen…

There’s nothing "erratic" about trying to save a little more of your own money.

[Depardieu] was front-page news once more on Monday following confirmation that he has taken up residence in Nechin, a tiny village just over the border in Belgium which is a favoured spot for wealthy French nationals…

"It is sad because he is a great actor and someone I know and like," said Bertrand Delanoe, the Socialist mayor of Paris. "He is a generous man but in this instance he is not showing that." …

You see? Depardieu is a selfish brute for trying to avoid being taxed at a rate of 75%.

Depardieu’s move into tax exile is a sensitive issue at a time when the French government has embarked on an austerity drive that will mean higher taxes for many middle-class citizens as well as the super rich.

It’s not an "austerity drive" when you don’t cut spending. It’s not an "austerity drive" when you hike taxes to 75%.

Hollande, who famously declared "I don’t like the rich" during his election campaign, has pledged to tax annual income of more than one million euros per year at 75 percent.

With the ability to command two million euros per film, Depardieu would almost certainly be hit by that, even if he did not have extensive business interests on the side.

Those include a vineyard and a chateau in the Loire valley, stakes in wine estates in France and at least five other countries, three Paris restaurants, a fishmonger and a production company…

What a pig Depardieu is, to have all these companies and employ all those people.

France must be glad to have gotten rid of him.

This article was posted by Steve Gilbert on Tuesday, December 11th, 2012. Comments are currently closed.

6 Responses to “French Industrial Output Declines Unexpectedly”

  1. Helena

    France is shooting herself in the pied. And imagine a Frenchman being indignant about acting in one’s own best interest. The French have never done anything else.

    But my favorite part of this article was: “Sentiment among manufacturing executives fell to 91 in November from 92 the previous month…”

    Sentiment? Have manufacturing executives stopped writing poetry or something?

  2. Because the Milton Freedman conservative approach of free market economics has been strangled by the world’s Slimedia, and all but eliminated in the world’s universities, these people probably really are “surprised”.

    They’re financially illiterate, and think all economies can be manipulated infinitely.

    Corporate leaders find themselves taxed to death and unable to maneuver in the hyper-regulated Euro-world. They can’t hire and fire at will, or change work rules that destroy productivity.

    The lessons of Red China and the Soviet union are forgotten, and will have to be learned all over again by massive suffering.

  3. GetBackJack

    What could the cause be? What could it be ….

    (thinking thinking)

  4. Anonymoose

    And so begins the lesson–the corporate and industrial producers are much hated and maligned by the socialists. Yes they are expected; no, demanded to freely give up their earnings and property to support the government and entitlement programs.

    Socialists–at least to the populace and beneficiaries of their system, insist on an almost medieval interpretation of economics; that the gold in the treasury is finite and the wealthy have hoarded too much for themselves and must be punished to redistribute the wealth. But wealth today is far more than simple money–it is investments and property and rights and holdings. And unlike a finite pile of gold it’s more akin to a crop; under the right conditions it can grow and continue and create more.

    However, to the industrialists they seem to realize the production of wealth, and expect them to drive the very engines of their system. Think about it. Hated capitalists are intended to provide all the wealth to allow the socialist society to function. Without the products of capitalism the supposedly superior socialist realm has nothing to run on.

    Assumed is the wealthy have plenty to spare, won’t mind giving up their assets, and will continue to provide for the benefit of society. To not do so is simply out of spite. Lost on them is the wealthy may decide they have no reason to work harder and longer for the sole purpose of providing. Really, to be demonized and perpetually expected to give ever more–why bother?

    But also, the companies may simple be unable to function, or even survive when faced with too much duress. Much like parasites that overwhelm the host, the punishment for success can only go on so long.

    Will the French learn from this? Of course not! They never do, only lessen the economic grip to widen the range of possible hosts for the parasites to draw from, until the hosts begin to grow stronger and recover, then tighten the grip yet again.

  5. American socialists are just like the French socialists!
    Schumer Proposes Tax on People Like Facebook’s Saverin

    Saverin, 30, the billionaire co-founder of Facebook Inc. (FB), renounced his U.S. citizenship, which was reported earlier this month in advance of tomorrow’s initial public offering that values the social network at as much as $104 billion. He will save at least $67 million in income taxes by dropping his citizenship, according to data compiled by Bloomberg.

    So, the lesson learned here is two fold:
    1. Socialists chase away prosperity.
    2. Never admit you are leaving the country to avoid taxes, otherwise you will have to pay up.
    *Little known fact, even if you renounce your citizenship, the American government can make you pay an exit tax, AND still hound you for back taxes when you are no longer a citizen.


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