Research Publication: Policy Advice To Help the Economies of Great Britain, France, and Other European Countries

 

Let's take France as an example.  The issue for why the French economy is weaker than the US economy is, the French economy is low on natural resources.  E.g., there is coal (Virginia) and iron (Pennsylvania) in the United States, and the US has a lot of area to its borders.  Although the French education is, I believe, comparable in quality and output to the US education system, the problem is that a knowledge economy without the ability to back up the manufacturing sector is not ideal for economic prosperity.

In short, France needs more "small business babies."  It is difficult for a small business that manufactures and sells a product to operate when raw materials must be imported.  Transportation costs are high for that.  Thus, there needs to be a way to compensate.  I recommend:  Slashing sales tax on businesses that are a)  small, and b)  highly France-focused, i.e., most or all of their output is to French purchasers, whether that's retail store purchasers or end consumer purchasers.  If a business stops being small, the sales tax could be reinstated, and if a company starts exporting lots of its products, the sales tax could also be reinstated.

My claim is that this approach will help to compensate for difficulties in competing for manufacturing companies.  Average French citizens, however highly educated the might be, will be able to take greater advantage of small business starting and running opportunities; the difficulty of obtaining raw materials for the supply chain will be offset by the very low sales taxes, and more small businesses will start up, leading to a better ability to compete with foreign companies that manufacture goods.  The knowledge economy will have more of a foundation to work on economically.

Overall, I think this is a very good idea.  I hope that my blog will be read by foreign economists in Europe and perhaps elsewhere, and that my idea will be evaluated and put to use helping European economies to thrive more.  Thanks for reading this blog post.

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