Protests over Pension Reform in France
http://thedianerehmshow.org/shows/2010-10-20/protests-over-pension-reform-france
In France President Nicholas Sarkozy says he will press ahead with planned pension reforms. More than a million people took to the streets Tuesday to protest his plans which include raising the retirement age from 60 to 62. In addition, blockades at French refineries are causing widespread fuel shortages and about 400 schools are closed. The reforms aim to boost France’s longer term economic prospects, but protesters and others in contend the concessions are being unfairly foisted on French workers: understanding the pension reform crisis in France and its relevance to austerity efforts elsewhere.
Guests
Ulysse Gosset
anchor at French Television
Simon Johnson
professor of entrepreneurship at MIT's Sloan School of Management, a senior fellow of the Peterson Institute for International Economics and author of the book "13 Bankers."
Ron Blackwell
chief economist, AFL-CIO
Justin Vaisse
senior fellow, The Brookings Institution
Comments
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The people protesting in France are showing the rest of the world how lazy and spoiled they are. I worked until I was 70 and only stopping at that time because my job was outsourced and my husband, 75, is still working with no plan to stop. We are not the only Americans working long, there are many, many more. Thank you Diane, love your program.
Barbara, Saginaw, MI
If reform is understood from both sides, is there a negotiable position between gov't and beneficiaries, such as any accomodation for those who are approaching 60--something of a safety net and phase in over a few years?
I just tuned in and heard a guest mention the privatization of social security in the united states with disdain. Why is this such a wild suggestion? Federal employees have 5-10% taken from their social security, put into private accounts in their name and invested for them. Doesn't sound fair to me. Imagine if we all kept what the gov't presently takes out for 'social security' and invested it ourselves - we would have a great deal more money than we would ever get from 'social security'.
I agree, I am french and left over 20 years ago. The french need to start learning that being productive is what makes an economy strong. Same behavior occured 30 years ago then and continues now. I have lived here 20 years, and recognize that my country is a mess, France has not changed in those 30 years. The truth is that the social services have paralized the economy in France. Those rich you are talking about are very few in France, but there is a huge civil servants community who get paid 8 weeks vacation a year, and wants more. I guarantee you I am in contact with very middle and lower middle class people in France and they all want reforms. Those who don't want it, are the civil servants who get the best benefits in France: Electric company (EDF), SNCF - trains etc.. workers. The social services are enormous in France and are cripaling the economy, and the majority of french know that. We have to stop spending so much money on unproductive people, and give tax break to the small plumber or electrician who is trying to get a business of the ground. He does not get paid 8 weeks vacation and does not stop working at 60.
I think what the French are afraid of is the slow eroding of their social protections, protections they have paid for. Granted it may not be a perfect system - no more than is ours, but it's one I would gladly trade over ours here in the States.
The rest of the world IS lazy and spoiled. What we see going on in France is what we can expect right here in America. We have become a nation of entitlement hounds, and self serving brats. We don't care to see the big picture or realize how dire the county's circumstances really are.
I feel sorry for ANY president who is tasked with reining in this unregulated mess! God help America!
The French, contrary to the narrowness of this discussion, are protesting larger issues than this particular delay in early retirement. They resent being dictated to by the controllers of international finance, and they also understand how big finance has undermined (probably on purpose) their benefits system. I do not expect Sarcozy could be re-elected today. The austerity in France can be seen as a mild preview of what Americans will suffer under conservative populism (financed by Oligarchs) come January 2011. The French will come into rebalance much faster than we because their political system has a greater capacity for egalitarianism and national self-sufficiency. As we are at the end of our empire we can expect violent repression and more human rights losses if there doesn't come an economic miracle.
That's fine for someone who knows about investing. I'd guarantee a majority of people do not or would not invest the money. Then where would society be in 20 or 30 years? Also, look what has happened to the economy because of Wall Street and Banks? Privatization of SS would be an even more disaster and I am thankful we didn't do it in the Bush years.
I say let them protest. When their manufacturing collapses, they continue to inhibit business growth (look next door at Germany and their policies...), they continue to inhibit immigration, and stifle economic growth through a socialist market style system, China/SE Asia, Brazil, and the rest of the world that is "hungry" will demonstrate what it means to work hard and long...we are merely seeing a migration of wealth and countries like France are SCRABBLING to hang on tight to what little true wealth they still have. If we are not careful, the USA will not be far behind...thank goodness we welcome immigrants with an overwhelming desire to work hard and have tremendous entrepreneurial spirit!
Diane, you're usually on target, but you really missed on this one when you said that strikes were not OK when they got in the way of life, and that workers had voting or protesting as alternatives. I wish! As democracy grew in the last few centuries it was supposed to allow the strength of numbers to outweigh the wealth of the few. Needless to say, this hasn't happened. Workers' only recourse is to withhold their labor, and slowly but surely that right has been eroded -- by prohibiting "non-economic" strikes, by prohibiting support strikes, by prohibiting strikes by public employees or in "vital industries" (eg air traffic controllers). It is no accident that as labor has gotten weaker, income and wealth inequality has increased, and also no accident that elections are manipulated by money and by media controlled by the rich.
Your caller who said things were better when organized labor was stronger was right. There's no balance any more. When capital goes on strike and in effect takes the economy hostage -- remember the "too big to fail" bailout? -- that seems just normal, but when workers disrupt daily activities you tell them to go vote. For who?