Francois Hollande Promises “Growth”

The new president of France campaigned on the theme that France and Europe need less   “austerity” and more “growth.” In the article below, he promises Greece more “growth.”

The problem is that his dichotomy of “austerity” versus “growth” is false. It is false because the policies that Hollande identifies with growth actually created the recession and related “austerity” in the first place. It is all very well to favor “growth,” but to do so one must first have some idea what creates economic growth. And it is certainly not more government deficit spending and government jobs, together with stifling regulation, interference in every conceivable way with the price system, all lubricated with endless money printing. This is a formula for unemployment, not for growth.

It is a commonplace in politics that the person who is able to define the terms of the debate will win it. Hollande thinks he has defined the terms of the debate in such a way that he stands for “growth” and others stand for misery. But these are childish terms of debate which have no connection at all with reality.

Click here for the piece.