Artus – Finding the right supply policy in France

CHRONIC. How to support domestic demand without increasing reliance on imports?

Artus – Finding the Right Supply Policy in France

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The left-wing parties in France clearly defend the thesis according to which, if we want more production and jobs in France, we cannot obtain it only by stimulating demand. This can actually be obtained by a significant increase in low wages, the minimum wage, with the high propensity to consume of low-income households. The same left-wing parties totally reject the existence of supply-side constraints, and the need for supply-side policies. They therefore criticize the labor market, tax and vocational training reforms carried out over the past five years.

But, if we are honest, we cannot deny the existence of a problem of offer in France. It first concerns the labor market and then the capacity of the productive apparatus…

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