Interesting: Entrepreneurs, Investors Fleeing France
The NY Times seems surprised that entrepreneurs and the money class are bolting from France
Guillaume Santacruz, an aspiring French entrepreneur, brushed the rain from his black sweater and skinny jeans and headed down to a cavernous basement inside Campus London, a seven-story hive run by Google in the city’s East End.
It was late on a September morning, and the space was crowded with people hunched over laptops at wooden cafe tables or sprawled on low blue couches, working on plans to create the next Facebook or LinkedIn. The hiss of a milk steamer broke through the low buzz of conversation as a man in a red flannel shirt brewed cappuccino at a food bar.
A year earlier, Mr. Santacruz, who has two degrees in finance, was living in Paris near the Place de la Madeleine, working in a boutique finance firm. He had taken that job after his attempt to start a business in Marseille foundered under a pile of government regulations and a seemingly endless parade of taxes. The episode left him wary of starting any new projects in France. Yet he still hungered to be his own boss.
So he bolted. Like quite a few others. He went to England. Many go to other countries. One of the other issues is that the atmosphere in France is unforgiving of failing in business. But, mostly taxes and regulations.
France has been losing talented citizens to other countries for decades, but the current exodus of entrepreneurs and young people is happening at a moment when France can ill afford it. The nation has had low-to-stagnant economic growth for the last five years and a generally climbing unemployment rate – now about 11 percent – and analysts warn that it risks sliding into economic sclerosis.
Sounds familiar, regarding the economics. The US has people bolting for non-Liberal states. Growth overall for the US is low to anemic.
Some wealthy businesspeople have also been packing their bags. While entrepreneurs fret about the difficulties of getting a business off the ground, those who have succeeded in doing so say that society stigmatizes financial success. The election of President FranÃ§ois Hollande, a member of the Socialist Party who once declared, “I don’t like the rich,” did little to contradict that impression.
That also sounds familiar.
After denying that there was a problem, Mr. Hollande is suddenly shifting gears. Since the beginning of the year, he has taken to the podium under the gilded eaves of the Ã‰lysée Palace several times with significant proposals to make France more alluring for entrepreneurs and business, while seeking to preserve the nation’s model of social protection.
This is the guy who wanted to impose a 75% on the wealthy. And a goodly chunk of French citizens despise the rich. Sound familiar?
“It is a French cultural characteristic that goes back to almost the revolution and Robespierre, where there’s a deep-rooted feeling that you don’t show that you make money,” Ms. Segalen, the recruiter, said. “There is this sense that ‘liberté, égalité, fraternité’ means that what’s yours should be mine. It’s more like, if someone has something I can’t have, I’d rather deprive this person from having it than trying to work hard to get it myself. That’s a very French state of mind. But it’s a race to the bottom.”
That sounds familiar, too. Fortunately, we haven’t quite reached this level. Yet. The entire story is a stand-in for Progressive economic policies.