France: There is a lot of talk about purchasing power, yet it is a supply-side shock that would be needed

In France, there is a lot of talk about bolstering purchasing power through tax cuts on households and increases in wages , pensions, and government transfer payments to households . Yet , w hen we look at France’s problems, we see that it is a supply-side shock that would be needed, the key objective being to restore the employment rate. This could include: Cuts in companies' social contributions or in other taxes that hamper employment and investment (taxes on production); Improved labour force skills; Modernisation of companies’ capital and restoration of industrial production capacity. It is supply-side policies that are needed .