Monday, November 07, 2005

Will rioters Destroy the French social model?

The American Thinker reports:
Inspired by their social model, the French have a very high minimum wage, about twice the level in the United States. Ten years ago, the Joint Economic Committee of the U.S. Congress issued a bibliography on how the minimum wage “reduced employment,” “reduces employment among teenagers more than adults,” “hurts the unskilled,” “hurts low wage earners,” “increases the number of people on welfare,” and “hurts the poor generally.” The minimum wage is so high in France that supermarkets don’t hire people to bag groceries.

Encouraged by the social model, the French have extremely rigid employment laws that make it difficult to fire employees. As the consulting firm Triplet & AssociƩs puts it,

“employment in France is not ‘at will’… [and] dismissals are subject to stringent, and often bureaucratic, procedural statutory constraints.”

This makes employers in France hesitant to hire permanent employees. They do hire interns, of course. And now the interns are starting to protest. They are getting fed up with serial internships but no jobs.
The welfare state raises costs and destoys jobs and families.The French are in decline.