Clément Carbonnier traces the history of French labour policy since the post-war period. He argues that there is no economic relationship between the cost of labour and productive employment. He shows the diversity and complexity of the mechanisms implemented to transfer the financing of social protection, limit its cost and ensure wage moderation. He analyses the side effects of these policies, such as the development of private protection, the introduction of social minima and the taxation of wage supplements. These measures have all been inefficient since the French employment rate – especially among young people and senior citizens – is one of the lowest in Europe. These policies have, however, been justified by the prevailing belief that public jobs are unproductive and that only private employment is efficient. The current imbalances are due to an uncontrolled decline in compulsory levies, taxes on companies and income from assets and reductions in contributions on salary supplements and contributions. The revision of these measures would generate a wave of discontent because it would only have long-term effects, which has dissuaded elected officials from reforming. The author is convinced that in the absence of political courage, the French state will be forced to comply with the rules imposed by international institutions and markets.
The author therefore tries to show the inextricable nature of the social problem and the inevitability of international economic sanctions in the absence of reform. He reveals the extent of the impasses facing French society and the difficulty of emerging from them through neo-liberal or post-Keynesian policies. Measures to restore fiscal balance, social equality and business competitiveness, are a “squaring of the circle” because they involve structural reforms and a radical revision of the current social regulation mechanisms.
The main interest of the book lies in its analysis of the scope and limitations of successive social policies and the reasoning held by neo-liberal and post-Keynesian policymakers to avoid a widening of deficits and an increase in social debt.
Clément Carbonnier is a Professor of economics at the University of Paris I and the author of numerous books.
Jean-Jacques Pluchart