Is France’s insoluble problem really insoluble?

Any French government would be faced with the same seemingly insoluble problem: public opinion demands an increase in purchasing power, when in reality wages should be reduced: The very high level of France’s low-skilled unemployment rate shows that low-skilled labour costs remain too high despite the reduction in social contributions; France’s deindustrialisation and market share losses show that its cost competitiveness is poor, given its level of product sophistication, which is consistent with the skewing of income distribution in favour of wage earners. As companies cannot afford to pay higher wages (rather, wages should be reduced), they are paid by the government. If the interest rate was higher than the growth rate, as would be normal, it would amount to a tax on future generations used to increase wages today. But since the interest rate is currently lower than the growth rate, it is a tax on current and future savers. So perhaps a solution to France’s insoluble problem has been found: an increase in wages financed by a tax on current and future savers.