Death Trap
…or perfect vicious circle, or clear path to oblivion, whatever you call it there is a certainty about the current debate in France about the exhausted public retirement system and ways for the governement to cure it (ot not). Here it is:
- raising social taxes on active people’s income will increase cost of labor,
- increased cost of labor will deter companies from hiring people and incentivize some to offload part of their workforce to remain competitive,
- higher unemployment rates will in turn make the tax base shrink,
- which will in turn incentivize the government to raise taxes on compensations in order to secure enough financial resources,
- and there you go, circling round and round until there are only unemployed people and retirees in this country. Both with no income. Zero. Nil. Nada.
I’m puzzled no one in the political class or amongst the unions is able to formulate this very simple logic.
