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There is really nothing dearer to me than this subject. To be honest, I read the article more with disgust than hope. Why disgust? Because, for two centuries, we made great strides in wiping out this most immoral of iniquities, in all but the most far flung and backwards part of the developed world read: USA).

But by an historical accident, now we witness the roll-back of all those gains, as out elite emulate the "efficiencies" of the Anglo-American model, wiping out equality and thereby liberty and brotherly and sisterly bonds.

It's two steps backward after three steps forward, and in the UK and in other parts, perhaps two more steps backwards on top of things, such as alternance there, as in the US, is not functional. Differentials in healthcare outcomes by race and class in the us are a thing to behold, I had no idea they could be as extreme in the UK...

But children die for the sins of their parents, the sin of idolatry of ideology; is has been this was forever in America; a grand export, via the UK, to the rest of us?

Fai de bèn a Bertrand, te lou rendra en cagant

by redstar on Thu Aug 28th, 2008 at 03:47:58 PM EST
of Sarkozy's plan to fund the RSA (a new form of income stream for the poor that's meant to complement income from work and avoid ratchet effects and poverty traps) with a new 1.1% tax on capital income.

He seems to have blindside both left and right, and the right is mighty pissed off.

(Note: the RSA is pushed by one of Sarkozy's "lefty ministers", the guy who was the former head of Emmaus, an organisation that helps the homeless. He's been quite persistent in making this a meaningful reform rather than a unfunded gimmick. If that does happen it would actually be good news, unless I've missed a catch)

In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Thu Aug 28th, 2008 at 06:07:18 PM EST
[ Parent ]
Catch : there'll be even less pressure to rise the minimum income for those who actually don't work. The RMI has been steadily going down since Rocard created it. And even low end jobs aren't exactly all that easy to come by, for some.

Un roi sans divertissement est un homme plein de misères
by linca (antonin POINT lucas AROBASE gmail.com) on Thu Aug 28th, 2008 at 08:45:23 PM EST
[ Parent ]
For example there is this :

Le RSA est une grossière erreur de diagnostic - Actu > Chomage : Le premier portail d'information et d'échange sur le chômage et l'emploi


Cette proportion de travailleurs qui n'ont pas intérêt financièrement à travailler est surestimée. On a demandé aux bénéficiaires du RMI ne recherchant pas d'emploi la raison de leur non-recherche. Seulement 3% d'entre eux invoquent des raisons financières : les gains obtenus en travaillant seraient trop faibles. Mais 44% évoquent des raisons de santé. Les problèmes de transport, de formation ou de garde d'enfants sont également beaucoup cités.

Most people on the RMI can't work for health reasons...

Another strange consequence of the RSA is that people on the RSA will only see about 60 % of the marginal euro they'll earn ; in effect, the same rate as the marginal euro for top earners...

Un roi sans divertissement est un homme plein de misères

by linca (antonin POINT lucas AROBASE gmail.com) on Fri Aug 29th, 2008 at 12:13:41 PM EST
[ Parent ]
Catch II: It keeps regular wages low. That may not be a problem... or it may be a very significant one, depending on how the French labour market is structured (and all I know about the French labour market I learned from the foreign correspondence in the Danish press plagiarisations of Anglo-American news, so I don't feel qualified to comment on that).

In Denmark, it would definitely be a problem for both practical, cultural and political reasons.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Aug 29th, 2008 at 11:43:24 AM EST
[ Parent ]
Well, it's only partly true that he's going to fund the RSA with this 1,1% tax on capital; about two-thirds of the funding is from the RMI, another large portion from the API, and only about 15% of it from the tax on capital.

I certainly like the taxing mechanism, a small step in the right direction towards reestablishing a fiscal balance vis a vis taxation of rents versus taxation of labor, a very small step.

But, insofar as it supplants the RMI, what we are now doing is transforming the poor and excluded into toiling poor and excluded, which does nothing for their station, still less for the station of their children (should they have any, given rents in parts of france it's getting harder and harder to afford to start a family) and in fact will, as linca points out, put pressure at the bottom end of the wage escale. In principle, I wouldn't be against such a scheme, if at the same time we were also in a full employment regime, there was adequate public housing for all, and other reasons for desperation at one's station at the lower deciles of the income strata were removed.

But, in terms of the tide of neo-liberal reforms, this certainly isn't the worst we could have expected. And, at end of day, it sort of is a repudiation, in fine, of the paquet fiscale which otherwise was hamstringing room for manoeuvre in advance of what may be a bit of a slowdown over the next 12-18 months.

Fai de bèn a Bertrand, te lou rendra en cagant

by redstar on Fri Aug 29th, 2008 at 06:55:49 PM EST
[ Parent ]

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