Social Politics in France

As commodity price increases plunged France into recession in the mid 1070s it began an era of slow growth. French policy-makers responded as if it were a temporary problem and increased industrial subsidies to firms and social benefits to individuals to help them weather the storm. The economy did not grow as quickly as in past decades and the result was an increase in the share of gross domestic product used for public expenditure that rose from 39 percent in 1970s to over 5 percent in mid 1980s. This started a whole new set of problems for the nation as it now had expensive social programs the nation could not afford.
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Joining the EU is as big of an act as anything that acted towards liberalization. This locked France into lines of policy from which previous governments might have shied away from they had not been forced by EU agreements and institutions. The EU is equipped with regulations to open markets but few resources to intervene in limiting their effects. The EU has committed to expanding the role of markets in the allocation of these resources. The EU is continually maneuvering Europe into a competitive market model, yet one that has room for with multiple avenues of production and various types of welfare states.
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During the 1950s and 1960s France was a hustling and bustling economy that experienced high levels of economic growth and low unemployment rates which slowly dropped by the 1970s. By the 80’s and 90s France saw itself in times of economic hardship plagued by lower growth rates and increasing unemployment rates. The cause of decline can be attributed to a fundamental change in productivity shifting from a agricultural producer to one of an industry producing nation. France was not alone in their struggles as the rest of Europe was following suit in the shift of production.
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