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France: Political Futures and the Welfare State Distribution

Analyzing France's social welfare structure, wealth concentration impact, tax distribution, and government regulations in a changing European context.

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France: Political Futures and the Welfare State Distribution

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  1. France: Political Futures

  2. What kind of Welfare State? • France has a mediocre record for distributing resources across classes and regions • Elites dominate • Paris dominates • Emergence of long term unemployment

  3. Concentration of wealth • Is inequality of wealth bad? • How much is too much? • Distribution of taxes: • share of indirect taxes – such as the VAT and excise taxes- remains higher in France than in other industrialized countries • Indirect taxes • drive up prices but • weigh more heavily on the poor. • Most effective in the distribution of social transfers • Relatively low poverty rates • High level of quality medical services and public services

  4. What kind of Welfare State? • Concentration of wealth • Is inequality of wealth bad? • How much is too much? • Distribution of taxes: • share of indirect taxes – such as the VAT and excise taxes- remains higher in France than in other industrialized countries • Indirect taxes • drive up prices but • weigh more heavily on the poor. • Effective in the distribution of social transfers • Relatively low poverty rates • High level of quality medical services and public services

  5. Regulative Policy & Nationalization • Government-operated business enterprises • Railroads; almost all energy production; and much of the telecommunication; most air and maritime transport; most of the aeronautic industry; 85 percent of bank deposits; 40 percent of insurance premiums; one-third of the auto industry, and one-third of the housing industry • Deregulation of the economy • Other areas of regulation • Environment • immigration

  6. Outlook: France and the New Architecture of Europe • Concerns that dominated French politics at inception of Fifth Republic have changed dramatically. • Cold War issues have faded into background • Political cleavages based on new conflicts are emerging • Class conflict • Immigration • Loss of sovereignty to EEU • Rejection of the European Constitutional Treaty

  7. Concern increasing over French identity • expanding European Union • an interdependent world

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