By Jonah Goldberg
Wednesday, October 21, 2026
On Monday, France’s Interior Minister Laurent Nuñez
admitted that police have “lost control” as some cities continue to see massive
waves of looting and mayhem. Social media brims with images
of stores being ransacked, cars burning,
and mask-wearing goons running
wild. In Limoges, the beautiful Hôtel de Ville was burnt to the ground.
But the chaos, as is so often the case, began peacefully.
And many supporters and leaders of the protests have condemned the violence. I
think that violence has more to do with France’s miserable record of
assimilating immigrants from North Africa and the Middle East than with budget
cuts. Call me cynical, but I don’t believe the goons pillaging Louis Vuitton
stores are planning to resell the handbags to buy better school supplies or to
bolster their teachers’ salaries.
The initial protests were about budget cuts, primarily in
education. As allied groups joined in—socialist and communist parties, labor
unions, etc.—the argument expanded to generalized complaints about France’s
“austerity” policies. In short, they argued, as they have for generations, that
the government should spend more on pensions and other entitlements.
The problem is that France can’t afford it. It’s borrowed
money to pay for its lavish government sector for a very long time. It has run
consecutive budget deficits—i.e., took in less than it spent—for more than half
a century. In 1974, public debt was around 15 percent of GDP. Today it’s at 116
percent. Government spending now makes up 57 percent of the GDP (compared with 23 percent of GDP for the U.S.), and France spends three
times as much on “social protection” —including pensions and family benefits—as
does the United States, and more than any other country in Europe and the OECD.
Naturally, the blame for this sorry state of affairs,
according to some supporters of the protests, falls on capitalism. Famous
French economist Thomas Piketty says the country’s woes are the result of the state
pursuing the “capitalist logic” of underinvesting in the public sector and
undertaxing the wealthy. In terms of personal income taxes alone—France has
massive payroll and consumption taxes as well—the top 10 percent of French
taxpayers provide 74 percent of the revenue. The top 1 percent
provide a third. France also has the highest corporate tax rates of any country in the
Organisation for Economic Co-operation and Development.
I’m hard-pressed to see how just a bit more taxing and
spending will solve France’s problems.
I have real sympathy for the nonviolent French youth.
Their economy is moribund in large part because retirees have a stranglehold on
the state’s finances, consuming 14 percent of GDP. (Social Security and
Medicare account for 9.4 percent of U.S. GDP. One reason education spending is
so tight: A third of the education budget goes toward Education
Ministry pensions.
I don’t think retirees should be thrown to the wolves,
but such a system is objectively unsustainable. Yet, in 2023, when French
President Emmanuel Macron introduced reforms to bump the retirement age from 62
to 64, the resulting protests paralyzed the country (that modest reform was
suspended last month). France is now caught in what economists call the “dependency trap,” producing too few workers to pay for the
lifestyles of its older generations.
When protesters talk about feeling “hopeless,” what they often mean is that the gravy train will run out before they
get to partake in it. I don’t blame them for being resentful, but it’s
difficult to see how this is a failure of capitalism or “neoliberalism.” As
Margaret Thatcher famously said, socialist governments “always run out of other
people’s money.”
The most obvious answer to France’s problems is economic
growth—much easier said than done, of course. The reason that’s so hard for
France isn’t because the government is “unresponsive” to the people and their
concerns., It’s because it’s too responsive. For decades, the French
have demanded the economic policies that got them into this mess, and the
government appeased them.
France is an outlier in its poor economic performance and
lavish social spending, but its problems are recognizable across the West, including in America. The U.S. economy has grown twice as
fast as France’s over the last quarter-century, but the demands for less
“capitalism” from young Americans echo those protesting in Paris.
France has the sort of universal health insurance many
insist would solve everyone’s problems here. It hasn’t spared France from
political turmoil. Our own Social Security and Medicare aren’t far from insolvency, but demands for higher benefits and “Medicare
for All” only grow louder.
The French canary in the coal mine is a good reminder
that the best solution to some crises is to avoid them in the first place.