France: What happens when the government is both expensive and inefficient?
The French government's inefficiency can be seen in the areas of education, vocational training, follow-up of the unemployed, healthcare, etc. Yet the weight of public spending is extremely high in France (even if pension spending is stripped out): the government is therefore both expensive and inefficient in France. Government inefficiency leads to low productivity gains and employment rate, and therefore low potential GDP; the high cost of government leads to a very high tax burden. We then see the scale of the problem: The lower the level of potential GDP, the higher the tax burden; It reinforces the negative effect of government inefficiency on the employment rate and production and income levels.