Socialist Hollande A step in the Wrong Direction for France

The election of Socialist Francois Hollande once again demonstrates how separate we are from Europe.  Sarkozy only lost by a couple of points but the French people sent a clear message that they don’t want to deal head on with the financial crisis in Europe.  I learned in Economics 101 that there is no such thing as a free lunch.  European’s have gotten used to the free lunch and want to declare war on the wealthy in order to continue their regressive ways.  One thing that the Communists in Russia learned is that the 5 years plans were doomed to failure because if you ask people to do more but don’t increase the reward, where is the incentive?  One might argue that no CEO is worth 50 million dollars and that person might have an argument.  But clearly 250K or even one million dollars is not 50 million dollars.  Hollande has proposed taxing anyone making over one million Euros at 75%.  Are you kidding?  That is absolutely absurd.  One thing I can tell you which seems pretty simple, people should be paid according to what they produce.  This includes teachers and firemen.  But don’t penalize and declare calss warfare on individuals who create jobs and wealth for others.  Without banks, the majority of people would not own homes.  In this country, owning a home is something to strive for; a life achievement.  In Europe it’s also a goal but to a much lesser extent.  We are culturally very different.  Our success is defined by whether we own a home.  With the Obama Presidency we have seen deeper divisons then ever before.  And being truthful, they are not entirely the Presiden’t fault.  There are many Americans who don’t like him simply because he is a man of color.  But on the other hand, the President has declared a war of sorts on banks and other large businesses.  Let’s not also confuse the Government’s bailout of GM with proper economic policy.  Although Romney is being called to the carpet for his views on the bailout, he is absolutely correct.  GM is a business and should have bailed itself out using the bankruptsy laws, not unlike the airlines.  The government had no business using Our Tax Dollars to bail out GM.  Europeans would agree with the bailout, Americans should not.  It’s not a matter of jobs being lost it’s about fundamental policy.  We should never want to emulate the European model lest we become complacent and less productive.  Only time will tell what this election will mean to France and the European Union but one thing is for sure, short term it will effect markets negatively.

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