Economic proposals (5/6)

COMPENSATORY ALLOWANCE OF SOCIAL VAT IN FAVOR OF LOW- INCOME EARNERS
VAT (value added tax) is but a fiscal tool based on a mathematical algorithm that is necessarily fallible in terms of the real economic situations encountered (by consumers, companies, the State). It can be adjusted via a compensatory allowance of social VAT in favor of low- income earners; this allowance would be calculated by INSEE (the French National Institute for Statistics and Economic Studies).
Should the principle be accepted, the triggering threshold needs to be defined, for instance an income tax return showing less than 0.8 – 1.3 SMIG (guaranteed minimum wage for full-time employees), whether the income is earned per adult or per family in the INSEE sense (offhand, 1 part for the first adult, 0.8 for the second adult, 0.5 for the first child, and 0.2 for the others). All decisions regarding thresholds, parts, and amounts should involve the trade unions, even the non-governmental organizations, and the associations working to fight poverty so as to prevent electoral challenges and street actions.

THE AUTHORITIES RESPONSIBLE FOR NEGOTIATIONS MUST PUNCTUATE THOSE WITH WELL DEFINED MILESTONES AND LIMIT THEIR LENGTH
One achievement acquired in May 1968 is the refusal of stupid and nasty authority that subordinates were expected to give blind obedience to, with no knowledge of the whys and wherefores and with no regard for the effort required. There ensued a period of interminable discussions, where no-one obeyed anyone as a matter of principle. The truth is that any organization needs someone (or group) who bears the ultimate responsibility for decisions, someone who will receive the information, listen to the arguments, and then who will cut the Gordian knot. It is essential to ensure that the consultation phases do not get bogged down in terms of either complexity or time, whether the stalemate is deliberate or not.
Consequently, the authorities responsible for negotiations must punctuate those with well defined milestones and limit the length of each phase. If negotiations get bogged down, the authority in charge needs to settle the argument unilaterally, since this is the final option.

This negotiation principle must be clearly explained to all stakeholders so as to gain acceptance and legitimacy. Any time-wasting behavior will be openly denounced. This is essentially what Nicolas Sarkozy, as presidential candidate, proposed in his Villepinte speech, and this approach is the right one, regardless of what one may think of the substance of his proposals. This approach is equally valid for discussions between unions and the company manager, between pupils and their teacher, children and their parents, plaintiffs and judge, government and the parliament, a President and street protesters.
No human (or even animal) grouping can function without an authority figure. Should difficulties arise in a society, it is that authority figure, if competent, who will ensure survival for all. It remains necessary, however, to assess its proper intensity, legitimacy, mode of enforcement, and the possible and necessary level of compliance to its commands.

FLEXIBLE LAW ENFORCEMENT, ACCURATELY IDENTIFYING WHAT IS ESSENTIAL FROM WHAT IS LESS IMPORTANT
I have recently experienced an administrative dispute on some trifle, and I understood to what extent the administration could harass people and make a fuss for the sheer sake of it! Civil servants believe they act within their rights when they enforce the law, which is the same for everybody, even where only special cases abound. They behave as the guardians of some semi-divine Law, because secularity and the Republic have replaced the sacred in my country, while their behavior is in fact inhuman and obtuse. Do not get me wrong, I am not advocating any laxity; I am a Republican through and through, straight out of the most impartial and demanding competitive examinations. I am also aware that the decision-making mathematical algorithms underlying our laws are hard to set up, that the threshold effects are cruel for those who are subjected to them, and that even the law-makers are fully aware of that. What I really want is to promote the notion of mediation in all areas of French society: in law enforcement, trade, education, social services. Sometimes, we might even realize that we need to be far stricter than the laws of the Republic, such as they are.
In this case, as I explained in a previous article, it is necessary to rely on the relevant legal power and human potential of mediation, of municipal police officers and gendarmes, long before knocking on the judges’ doors – they are overwhelmed by cases of no fundamental importance. Local and national news stories are full of these cases: tickets issued for exceeding the speed limit by a few kilometers without threatening one’s or anyone else’s life; families experiencing payment difficulties whose electricity and gas are cut off, often for, really, very little; companies filing for bankruptcy because of temporary difficulties, even though they are viable in the medium term; strained relationships between local authorities and citizens resulting from a too strict application of the town planning Code, etc. Flexibility and customization, even if difficult to implement (that’s why one can call in the mediators) - surely this is one of the keys to a better life for all in this beautiful and rich country, France.