Subject: Re: France to reign in state-backed groups
Date: Thu, 5 Aug 2010 19:09:25 -0400
Re: France to rein in state-backed groups
By prohibiting state-backed companies from seeking the lowest cost and/or best quality factors of production, the French economy will revert, by just that much, to a lower production possibility frontier. This process will create an economic cancer in the French economy, because these industries will require higher and higher levels of subsidies, robbing other, more entrepreneurial businesses of life-giving capital. This is just another obstacle placed on the French economy by its Mercantilist-style governmental policies.