Here in France we just got through 14 years of socialism. Today a French young company starting from scratch can be tax free for one year, but in the second year, it has to give 53% of its benefits to the government. The result of that is employers don't have a lot of choice : they
have to get greedy to survive, and they can't take any single risk in the way they manage their company. No more employing someone just because he needs more experience on his CV, today only the senior get the job.
How does prices go down ? When a company feels comfortable money wise, it is possible to decide to bring the prices down. Sure, that company will make some loss for a while, but when the masses get to know about the lower prices (if the publicity campaign is well done), then that company make a real nice benefit. This is the basic concurrence system. When good benefits are done, when employers start to relax a little, they can get back on thinking about laying a hand to unexperienced youngsters.
Giving money to the people in distress is humanly very good but in some ways it is also like gambling in casino or spending money in a food-store. When you go to a food store, you get goods in return, when you gamble you might just lose your shirt. How can we make sure the people in distress are not going to take advantage of the money they got from the government to make a 'happy wanking living' ?
I can't make up my mind about that question. Despite the crazy French taxes, I still see some young companies, even here in my town getting big. I also saw a friend shutting down his computer company because of the taxes.......perhaps the best politic ever is the one that can be adapted to every one in particular. But the only way for the government to do that is to have a very close look at everyone life, and that would bring us back to fascism.....I don't know....
