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December 10, 2018 | Macron Attempts to Placate Yellow Vest Protesters With Free Money

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Macron will hike minimum wages by €100 per month, starting in 2019. Supposedly, this won’t cost employers a dime.

The Wall Street Journal reports Macron Pledges Tax Cuts, Minimum Wage Hike to Placate Protests.

In an address on national TV Monday, Mr. Macron broke a nearly two-week silence on the so-called yellow vest movement, named after protesters who wear reflective safety vests, or “gilets jaunes,” in taking to the streets in protest. Over the past two weekends those demonstrations have turned violent, resulting in rioting across the French capital and other cities.

Mr. Macron said the incomes of minimum wage earners will rise by €100 per month, starting in 2019, “without costing one euro more to employers.” An adviser to Mr. Macron said the increase would be funded through a monthly government “bonus.”

Mr. Macron said the French street was expressing anger that had been pent up over the course of a 40-year socio-economic malaise. Mr. Macron said his government should have responded faster.

“I take my share of responsibility,” Mr. Macron said.

Gee, free money, at no cost to anyone. Fancy that.

In a week or less, the EU will be knocking on Macron’s door asking him how he will pay for it. Or is this another one of those things that pays for itself?

If so, why stop at €100 per month?

Mike “Mish” Shedlock

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December 10th, 2018

Posted In: Mish Talk

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