I find the Mauldin Newsletter insightful and informative.  He often comes up with fascinating tidbits of economic information.  Knowing what is going on in the world is important.

Saturday’s newsletter highlighted the economic condition of France, which recently elected a socialist president. (facebook  – in french)  His election promises were simple.  Less austerity.  More stimulus.  Deficits are not important.  Regulate business.  Tax the rich.

He won.

Mr. Hollande is now implementing his plan.  The top tax rate on “the wealthy” is now going to 75% in France, in addition to an increased wealth tax.  His administration is contacting businesses that are planning layoffs and telling them that they must negotiate any job cuts with the government before they can proceed.  The retirement age is being lowered to 60 (from 62).

I predict that there will be flight of business, capital, and talent from France.  History will tell us if I am right.

This is where Mr. Obama keeps suggesting the United States should go.

Watch France.  We’ll see how well it works out.