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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Public Expenditure problems
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