Daily Archives: 20 June 2017

The Nub of the Thing

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In a Deutsche Welle piece on the likelihood of Emmanuel Macron being able to reform French labor and pension law, is this statement by Julie Hamann, a political scientist with the German Council on Foreign Relations in Berlin.

The French have high expectations of the state, for it to fulfill its protective function with regard to social welfare.  As soon as reforms are announced that may lead to cuts in social services or labor market insecurity, this very quickly gives rise to very great and very emotional fears.

It doesn’t get any clearer than that.  The French people—French society—expects government to play the major role in doing for them; individual personal responsibility for a Frenchman’s own future is secondary and operable only within a Government provided framework.

Macron and his La République en Marche! party may well fail as resoundingly as did Alain Juppe, who had the major French labor union on his side 22 years ago but couldn’t do the deed, and as resoundingly as did Dominique de Villepin, whose plan already had passed through Parliament 11 years ago when he folded and canceled reforms similar to Macron’s.

Macron is a younger man, and his party is populated by newcomers still fired by their idealism and disdain, if not disgust, for the establishment.  But he will need to go directly against the forces of the people—the popular establishment of a sort—if he’s to succeed.

Macron will change the foundation of French social thinking with his proposals.  He and a sufficiency of his party must have the courage to lead in order to enact his proposals—and to face the consequences if his policies, rammed through and held to, do not lift the French economy into prosperity-generating dynamism.

Another Example

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…of the failure of government intervention in “green” energy.  And of the lack of understanding of the problem by the participants.  This four minute video via Deutsche Welle tells the tale.

A group of Spanish farmers, in order to “improve their pensions and to do something for the environment,” banded together to build a solar farm, Spain’s biggest cooperative solar park, an operation of solar cell collectors at roughly €90,000 per module.

The central takeaway:

[T]he modern facility is currently losing money because the conservative government has drastically cut the subsidies for solar power.

The solar farm is not economic viable, it cannot compete in the market place, without those subsidies, without OPM.  The thing simply is not market ready.

The lack of understanding is in the plaints that this is someone else’s fault; it can’t possibly be a poor business decision to rely on a technology that can’t compete and that isn’t ready for prime time.

I feel swindled by my own government, by the politicians we Spaniards voted into office.

And

The big energy companies regard us small investors as enemies because we threaten their monopoly on the market.

Except that these “small investors” don’t have anything with which to challenge them without all that OPM to prop you up.  Their enemy—and the small investors’—is that government subsidy.

One bit of slanting by DW: there is a vague reference to a tax on solar cell installations on private homes in that region of Spain.  However, DW chose to provide no context for that reference: what the tax is for, how much it is, what is actually being taxed, and so on.