Nanny State Can't End High Unemployment

France is dealing with another set of riots - this time from students upset about the high unemployment first-time job seekers (say, people 26 years old and under) face.

So, d'etat Nanny decides to make changes to workplace rules (through the CPE, which translated, is the "First Employment Contract")in order to encourage the hiring of this age group. But they decide to do this through greater regulation.

What exactly did they try to pass?

The CPE is a new work contract for under-26s with a two-year trial period. In that period, employers can terminate the contract without having to offer an explanation.

The CPE says that after the first month employers have to give two weeks' notice for severance of contract, and after six months the notice period is extended to one month.

For other employees, the trial period is usually only one to three months.

After the two-year trial period for under-26s, the CPE reverts to a standard full-time contract.

Of course, employers balked at these rules. But the real protests came from students and others in the 26-and-under crowd because it would undermine "job-protection."

I know this isn't France (thank God), but based on the French problem du jour, I'd like to make a couple observations.

First, there is no such thing as job security or job protection. If the market dictates you are the best buggy whip, you will only outlast all the other buggy whip manufacturers. Don't plan to go on forever making buggy whips.

Second, you make your own reality. Don't rely on the government to live life for you or to make your decisions. Government wants everyone to be equal - therefore we will be equally miserable if we allow them the power to make us that way. Step up to the plate and pull out of it through smart, efficient, hard work.

Third, if you are in the under-26 crowd, realize that you don't rule the world, that you are not wiser or smarter than your older-worker counterparts. You won't realize this for another five years or so, but you really have no clue how the world works. And as a general rule, your attitudes stink. Do something to make yourself valuable to an employer. No one gives a rip where you went to college or what cute little degree you have. It isn't worth toilet paper if you are too "good" to do your job. Lose the attitude, roll up your sleeves, and get to work.

Fourth, the best "job protection" is to be a good worker, honest and productive. Even so, crap happens, so always have a backup plan... or two, or three.

Fifth, when it comes to ballot box issues, a lot of people like to stick it to those who they feel are in a better position than themselves. Business owners, bigt busienss, etc. Here is some raw truth - if you stick it to those guys, you are sticking it to yourself. Government can create jobs, but they cannot create wealth. Those in business can create wealth. If you oppress them, they have fewer opportunities or incentive to do so - and it ultimately goes to haunt those that thought they should be punished in the first place. This also screws people who are not in the business owner class, but have that great idea or product that will create wealth for themselves and any employees they hire.

This isn't a comprehensive list, just a few observations. But I think they hold true.


economics , France