August 29, 2011 7:55 pm Like all of us, I have watched in recent days as economists and oracles wail a chorus of lament on every screen, in every newspaper. First came the downgrading of the US credit rating, in effect the downgrading of a nation. Then came the stock market crisis. The same thing would soon happen to France, pundits of all kinds claimed. Our era of prosperity was over. Europe was in decline. We were doomed. Such talk was intolerable. I have run a company for 23 years; I am accustomed to tough competition and downturns. But I cannot simply accept decline. Yes, our countries have been living beyond our means. The social model of western European societies is not sustainable without strong growth. We are trapped by our handouts and welfare support, and the price is unfeasible budget deficits and mounting debt. But France and Europe also have enormous assets. I believe strongly that we can maintain our rank, economically and in every other way. So what could I do? I took up a pen and started writing. Just as no French government in the past 35 years has been able to resist running a deficit, with the exception of finance minister Thierry Breton (2005-07), no government has truly reformed our country's abundant and complex social systems and bureaucracies. They may have made sincere attempts but with the exception of President Nicolas Sarkozy's reform of pensions and the non-replacement of 50 per cent of civil-servants going into retirement, these efforts have not yielded results. There is fundamental work to be done that can cut our public deficits and, above all, our government expenditure. Cuts in public spending will be painful and, unfortunately, of necessity much will be borne by the programmes' target populations: the middle class and less favoured people. It seems to me only fair that the most privileged members of our society should take up a heavier share of this national burden. So I called for an additional tax on the rich. I am not a masochist; I do not love taxes. But right now this is important and just. As I started to write on this issue, across the Atlantic the Sage of Omaha, Warren Buffett, was writing his own article, on more or less exactly the same point. We had not spoken to each other on the subject; we did not read each others' drafts. Perhaps even more surprisingly, a number of US business leaders joined his campaign; and in France, a number joined my call. So perhaps the tide has changed, as the wailing pundits claimed; but perhaps the new cycle will not be one of decline but of clear-thinking and solidarity. Clearly any added taxation of the wealthy should be carefully dosed so as not to discourage entrepreneurial flair and the fair reward of success. Also it should be clear that increasing taxes will not resolve public deficits. Such a tactic would be futile – rather like the daughters of Danaus trying to fill a sieve – and could only encourage greater self-indulgence. A resolution of public finances, in France and across Europe, can only be achieved if we revise our social model and institute vigorous reforms, possibly including privatisations, with the revenue dedicated to debt-reduction. It is because of the inevitable ensuing pain that the privileged should also make an exceptional contribution. Our countries must become more competitive. In the 1990s, French industry had a 10 per cent competitive advantage over Germany because the cost of labour was lower. Today France's labour costs exceed Germany's by 10 per cent. They have been swollen by the 35-hour limit on the work week and the burden of social welfare contributions for programmes such as family subsidies – which would be more fairly funded by the entire population, via sales taxes such as value added tax. There is a long list of reforms needed. Is this a programme of that dreaded word, rigour? I prefer to talk of vigour. Probity in the running of public funds will set an impressive example for the broader population. If the wealthy can endure higher taxes without complaint, the less privileged may feel able to bear the pain that sharp-edged reforms will entail. I never thought I would find myself saying this, but it is time to increase my share of taxes. The writer is chairman and chief executive of PublicisGroupe and president of the Association Française des Entreprises Privées
**************************I am not a masochist but the rich must pay more
More
On this story
I. If you want to receive individual emails
II. Receive one mail with all activity in it
III. Do not want to receive any mail at all
Regards,
Tariq Khattak, Group Manager,
GSM = 0300-9599007 and 0333-9599007
+92-300-9599007 and +92-333-9599007
Tariqgulkhattak@gmail.com
Tariqgulkhattak@hotmail.com
REQUESTS:
1)Please directly contact sender for personal/individual correspondence.
2)Try to discuss issues that will catch attention of many readers.
3)Please avoid sending messages in any language other than English
4)Avoid sending messages addressed to many recipients.
5)Do not send messages aimed at personal publicity.
6)Please do not send personal/other links unless necessary.
7)The Group is not obliged to publish printed news,
very short/long comments and objectionable material.
8)Every mail cannot be published; it will overload Mailboxes
of our valued members.
9)Try to Disagree Without Being Disagreeable, Unsympathetic and/or Unpleasant.
x==x==x==x==x==x
Please note that,
It is a common platform for journalists and all others who are interested in knowing about the issues that are sometimes not reported. This group favours philosophy of progress, reform and the protection of civil liberties. Please share and educate others. The owners and managers of this site do not necessarily agree with any of the information. It is an open forum; everyone is allowed to share anything. Mails sent by members and non-members are subject to approval. However, we are not responsible in any way for the contents of mails / opinion sent by members. We do not guarantee that the information will be completely accurate. (Nor can print and electronic media). If you find content on this site which you feel is inappropriate or inaccurate, incomplete, or useless you are most welcome to report it or contradict it.
Thanks a lot.
3 comments:
Incredible points. Great arguments. Keep up the amazing effort.
Also see my website :: 3 credit scores one time payment
What's up Dear, are you truly visiting this website regularly, if so then you will without doubt obtain nice know-how.
Also visit my homepage - one time purchase all 3 credit scores
If you are going for most excellent contents like me, simply pay a visit this web page every day because it offers feature contents,
thanks
My web-site ... perfumes
Post a Comment
Gujranwalafun@Aol.com
Gujranwala@windiowslive.com