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French Government Fears 'Social Implosions Or Explosions'
Wolf Richter www.testosteronepit.com www.amazon.com/author/wolfrichter
The daily drumbeat of layoff and plant-closure announcements in France has been riling up desperate workers who stand to lose their livelihood without much hope of finding a job elsewhere as unemployment has hit 10.5%. But now the government is worried about a “radicalization” of these angry workers. A major quandary: on one hand, the Socialists promised during the election to side with the workers; but on the other hand, they must somehow figure out how to create an environment where the private sector can survive.
And the private sector is gasping for air. The Services Purchasing Managers’ Index fell to 43.6 in January, from 45.2 in December (below 50 = contraction), the fastest rate of contraction since March 2009. Particularly worrisome was the steep decline in employment. Manufacturing was even worse. Its index fell to 42.9 in January. New orders plunged at the fastest rate since March 2009, with domestic demand the primary culprit. Employment skidded as excess capacity led companies to slash their headcount.
That these references to March 2009, the dark days of the financial crisis, keep cropping up in economic data is troubling. The report speaks of a “deepening malaise” and “a broad-based deterioration in the private sector” with “significant headwinds,” “accelerated job cutting,” and “heightened levels of uncertainty.” President François Hollande and his government should be in panic mode.
The private sector is anemic in France. Based on the 2013 budget, the central government will contribute 56.3% to the economy. The remaining 43.7% is spread over local and regional governments and finally the private sector—that is shriveling with the relentless de-industrialization of France.
Plant shut-downs and layoffs, or merely the announcement of these events often months or even years down the road, make bold headlines. Video clips of protests associated with them show up on TV, with angry men and women blocking the site. There are images of fires and mayhem. Managers are taken hostage. Politicians weigh in gravely and speak of “dialogue.” Layoffs and plant closures don’t go down smoothly in France.
A series of big-name companies, some of them part-owned by the state, has become part of the nightly layoff blues: Air France, steelmaker ArcelorMittal, Texas Instruments, Goodyear, refiner Petroplus, or automakers PSA PeugeotCitroën and Renault, whose unit sales in France had plunged 17% and 20% respectively last year. But it doesn’t stop there. Now home sales are grinding to a halt [read... The Next Shoe To Drop In France].
The numbers are adding up: in 2012, according to Trendeo, which tracks the creation and destruction of jobs in France, 266 industrial plants were closed last year, a 42% jump from 2011! Since 2009, a total of 1,087 old factories were shuttered while only 703 new ones were brought to life, for a net loss of 384 plants. And these new factories have on average 8.5% fewer employees than factories that are being shut down.
Just how deeply the government is worried about the growing labor unrest emerged during an interview on BFMTV on Tuesday. And not in a propitious location: Interior Minister Manuel Valls was discussing the hunt for Islamist terrorists in France—efforts that the government has redoubled since its military involvement in Mali—when suddenly the topic shifted to the government’s fear of “excesses and violence” during the next labor-related demonstrations.
“Social anger”—meaning, anger by unionized workers—“as a consequence of the financial and economic crisis, job insecurity, unemployment, and layoffs is here and has been rumbling for years,” admitted Valls. “But what we’re seeing today are less social movements but social implosions or explosions.”
Turns out, the government is already preparing for them. A memo to that effect, dated January 30, bubbled to the surface. Sent to regional directors of the police intelligence service, it underlines “the risks of incidents” or possible “threats to production equipment in case of radicalization of the conflict.” To get a handle on the situation, the government has instructed its police intelligence apparatus to gather information on the movements and to follow teetering companies “very closely” in order to anticipate a possible “radicalization” of the labor unrest.
Valls confirmed the police surveillance. “You have to carefully analyze it,” he said about the social anger. And that was the job specifically of the intelligence services of the police, he added. Ever the likeable Socialist, he found the right words. “We have to try to understand the reasons that push men and women into desperation,” he said. “Men and women who are in the process of losing their jobs.”
What about vandalism and destruction of production equipment often associated with these movements? “We have to try to understand them, but we cannot permit them,” he said firmly, as the interview drifted to the next topic: rising violence and property crimes against individuals.
The heightened police presence at these sites during times of labor unrest, often in unmarked cars, has the unions worried. And Bernard Thibault, Secretary General of the CGT, warned that it would be seen as a “provocation.” And so the second largest economy of the Eurozone enters into a phase where fear of a labor revolt hangs over every economic decision the government makes.
The unemployment rate in particular has become treacherous. While all countries use inscrutable statistical systems to make unemployment look better, France also has an administrative tool: removing tens of thousands of people every month from the unemployment rolls for spurious reasons. Read.... “The Politics of Removal”: Dressing Up French Unemployment
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Sure. Middle class tax-eater.
Teacher: To Infect and Inflict Propaganda on new generation
Police: To Enforce and Keep old Generation in line, and protect TPTB.
Fireman: To prevent damage to infrastructure when muppets get mad.
Addendum:
Boeing Employee: Moved to China and Renounced US Citizenship
"French Government Fears 'Social Implosions Or Explosions' "
As well they should.
Not to mention being overrun with a Muslim entitlement class.
All Central Controlling Governments should...
All Cenral Controlling Gov't's are....fixed it for ya.
The Frech fire-bomb 40,000 cars a year when things are going good, so I guess they'll have their hands full.
Demand push! Bring back those factories to mfg explodable cars for the masses! Viva LaFrance! Viva, Bitchez!
They need to print more fiat- Timmah ain't doin' nothin'. Send him over with a boatload of cash from Bennie and the Inkjets. Maybe Krugman can go along and spread some of his BS "wisdom". More printing means more wealth- didn't these ass wipes get the memo!!???
http://www.youtube.com/watch?v=DueEBHTEA-o&list=UUazDBRKv_Bh6Gf0ebKbFRPQ...
My French is a little rusty but thanks. The video kinda spoke for itself..
You will hear the people rise! Red, the color of angry, bankrupt men. Black, the color your books will never see again. When tomorrow comes! Back to the barricades, Bitchez!
Areas of France are literally becoming "rust-belts" like former industrial states in the U.S.(think Detroit)Remember that old song "Where'd you go Ohio".Socialism in France or anywhere else for that matter doesn't work any better, in fact French and Chinese Officials make a good bunch of corrupt crooks just like U.S. Congressman in Washington on the inside take.And everybody is supposed to go to war and die for these bas-turd politicians?
They were pretending.
http://www.youtube.com/watch?v=HA56J8zlAdo
Don't worry the Chinese will move in to buy the factories and employ chinese labor to produce French goods.
or the Billy Joel song "Allentown"
Well we're living here in Allentown
And they're closing all the factories down
Out in Bethlehem they're killing time
Filling out forms
Standing in line.............
..
But they've taken all the coal from the ground
And the union people crawled away
Every child had a pretty good shot
To get at least as far as their old man got
But something happened on the way to that place
They threw an American flag in our face
Well I'm living here in Allentown
And it's hard to keep a good man down
But I won't be getting up today
Thank you Wolf for keeping us up to date on Europe. Please keep up the great work.
Once you start closing plants and letting hundreds (or thousands) or workers go, the whole town that was built around those jobs shrivels up and dies. You can see the same thing in Florida with the end of the Space Shuttle program - deserted homes, boarded up businesses, infrastructure decay... just like Greece and now France...
Creative destruction! On to China!
Creative destruction! On to China!
The new Casablanca tramway is running into trouble..............it has only 40 -45 thousand passengers rather then the expected 250,000 passengers per day , example (Lyon trolleybus routes have 50,000~ passengers per route , their tramways 100,000~ per line.
There has been dozens of accidents , some fatal ( perhaps one incident a day on average)
RATP (paris metro) group depends on this revenue stream..............
Are they in trouble also ?
http://www.youtube.com/watch?v=aX28PK6JLT4
What the French need is some German Nazi's to make the trains run properly; they just need to surrender again.
Most of these modern metropolitan railways get built to make a handful of people a boatload of cash - on the promise that the system will be a cash cow. Then the taxpayer winds up carrying the responsibility of running the system at a perpetual loss. Here in Central Florida we are going right down the same path. The writing was on the wall a few years ago.
I hear that High Speed Rail in Florida will run between Miami and Orlando - great for the cruise line and airlines - but horrible for the rental car business and all the stops that people made in between. Either work part time at the rail service or Disney for $8.50 an hour - or get your Obama Phone to call in for your benefits... Indeed - The train rolls on....In Deed.... Allentown...
Four years ago when my husband and I were staying in Paris for a couple of weeks we decided to take a cooking class. We were joined by another American couple and we had a great time talking and partying while we made some great food. When the conversation steered toward our families it got interesting. They were a blended family with 7 children and the Chef/ teacher was shocked they were not getting any support from the government. He said they would be qualified getting a minimum of 4 thousand Euros a month in Paris including nanny care for their baby. All of us were speechless. Kind of made sense, we saw many black women pushing strollers with white children. I guess the nanny state is finally in its death throes. Too bad, must have been one hell of a ride before reality bit.
Miffed:-)
Don't smirk too much at the French Yankee ! Over 50 % of Americans are on some form of Government subsidy. Also if DeGaulle had is way we would be on a hard currency and not American fiat. Any while we are on the subject .. The French are able to give the Germans their gold back but obviously you Yanks need to invade another few countries to steal some to repay over the next 7 years . Hoped that miffed you !
We were stunned while in Spain to hear about that destitute country busily handing out welfare checks. In Italy (and other places) women are paid to have children as they try to stem the inevitable Don't forget, under Obamacare, a family making $90,000 can get assistance with their premiums. Europeans DO get more from their government but the taxes they pay prevents any savings. And without captial there is no capitalism.
And you just took his word for it? I'd be curious to know how he came up with that figure. 1k euros, maybe. 4k, I can't see how that would be possible.
It does sound a little high, but not much shocks me anymore.
Some divine intervention into the Goodyear crisis
http://picardie.france3.fr/2013/02/04/l-eveque-d-amiens-reagit-sur-la-fe...
“We have to try to understand the reasons that push men and women into desperation,” he said. “Men and women who are in the process of losing their jobs.”
This shows you how fascist France really is? You mean that, two hundred years after the Revolution, you still "have to try to understand the reasons that push men and women into desperation?" How utterly ridiculous. Dogs. Scum.
First of all, shut l'Ecole des hautes etudes--that's the school for producing fascist leaders for France.
I suggest an excellent book on this bizarre "country": William Shirer, The Collapse of the Third Republic.
Send the islamics home.
Freddy, While sending Islamists packing may be a worthy goal, they are the cause of France's approachng disaster. The problem is too few children, profits, investment and too much debt, state control and union stranglehold. My wife lived in France and we've been numerous times. The idea that the State can ever be too big or do too much is absolutely foreign to them. They may go through the motions of a market economy but their hearts beats Socialism. I'm sure the "solution" will be fewer hours worked or more benefit programs - LOL
Poor clueless Freddie, always putting his foot in his mouth. Think about this; collecting interest for money loaned is against Islamic "law". If France were actually RUN by "islamics" they would have no debt.
Please tell me you are kidding and not falling for the no interest myth. Every time I see some Muslim apologist say this I can't help but laugh. Islam has NEVER practiced this and it was not even an issue until the 1960s. The reason is that all loans were personal and while interest per se was not charged, there were gifts or (more ommon) future labor (servitude) or a percentage of future profits was negotiated. Every Arab country charges and pays interest.
first jews to israel
@ Freddie
Yes, but...
Sending them home would help, but they would not go peacefully. It would cost a fortune, and they would burn France to the ground before they got loaded up on their Airbus 380s and freighter ships...
On the other hand, should they decide to do it, the POPCORN IS ON ME!
Black riot gear, black rifles with 30rnd mags and a motto of zero tolerance would do the trick quite nicely. Works here in the states...
Marie Le Penn was/is gaining a lot of support.
Wants to implement a removal of social security for `non french born residents`
Ah, nothing like a little "patriotic" populism to score a few points with all those angry white men. Brownies/muslims are the perfect target to rationalize away natives' laziness and incompetence. What was it Einstein said on insanity again? Or is being gullible a dominant thread of human nature?
Wake me up when Le Pen (or any other power-hungry sociopath running for office) wants to implement a 75% smaller government with 90% cuts on spending...
No justification for any of your down votes.
Lmao, I must've hit a "racist nerve" of government employees, receivers of social handouts & angry white men in general.
It's a sensitive issue attacking people's mental programming, getting their amygdala to work and all... I call it 'stress-testing the mental matrix of your peers' and have learned to never expect a rational debate on the fallacy of my points because all that ensues is ad hominem attacks.
The down votes were not targeted at any specific brown person, but rather a system that allows the elite to import dependent populations and cheap labor (for them), propping up socialism, at the expense of the indiginous population. Whether it is Nick Griffin and his BNP or Nigel Farage of UKIP in Britain, Geert Wilders and his PVV in the Netherlands, or Le Pen and the National Front, common sense patriots have had enough. Their heritage, built over centuries, is being looted. Let foreigners build civilizations in their own countries. It is hard enough fighting against the indiginous collectivists and statists.
Why are white men so racist when every other group is so inclusive and open minded?
/sarc
Why is it easier to point fingers and blame it on others than it is to look in the mirror, be self-critical and aknowledge that you've failed to take responsibility and be a better person?
Obama's in France?
"The problem with socialism is that pretty soon you run out of other people's money" M. Thatcher
The French (among many other nationalities) don't seem to understand this. Everyone likes a free lunch but entropy and nature cannot be fooled.
"The problem with socialism is that pretty soon you run out of other people's money" M. Thatcher
She also famously said: "Socialism is misery spread widely".
The problem with hunter-gatherism is that pretty soon you run out of the Geese That Laid the Golden Eggs to eat.
The problem with other people's money is that it is used to bailout big private entities. I am sure Old Lady Thatcher has no problem with this type of socialism.