But on January 14th, 2014 Hollande solemnly acknowledged the failure of his collectivist policies by announcing his Administration would cut $40.8 billion of taxes on companies and the self-employed, plus reduce social security charge paid by employers by 5.4%. More shocking to the Left, Hollande said he would pay for his supply-side-economics by cutting $86 billion in public spending. Two decades later and again facing a collapsing economy, the Socialist Party of France is being forced to adopt the supply-side economics of President Ronald Reagan.
After the 2008 financial crisis, the Socialist Party revived its collectivist agenda. They claimed their manifesto of higher taxes and economic stimulus projects would lead to full employment and eliminate the budget deficit. But the Hollande Administration’s deficit spending has driven France into the same crisis as Mitterrand’s government 30 years earlier. The French government now spends 56% of the nation’s GDP, making it one the highest spending governments in the European Union. Hollande’s vast public sector and punitively high tax rates have driven the rich to take their wealth and leave and for businesses to relocate production off-shore. Franc’s annual deficit has doubled and the nation’s unemployment rate is now at a 15-year high of 11%. Chronic youth unemployment now tops 26% and still rising.