France: Are we sure that all this public money should be poured into the economy?

The response to the COVID crisis, in France as in most other countries, has been to significantly increase the fiscal deficit (cyclical and structural), in 2020-2021 and again in 2022. But is it certain that this sharp increase in public spending was totally necessary? At least the debate must begin: In most business sectors, companies’ financial position is good; Households have used the public transfer payments received to accumulate considerable forced savings, which will mainly drive up the prices of financial assets and real estate; The aid received by households plays a role in explaining the decline in the participation rate and the employment rate (the low attractiveness of returning to work); And, lastly, the situation of French public finances will be difficult in the future.