University of Puget Sound Sound Ideas Economics Theses Economics, Department of Fall 12-15-2016 French Economic Stagnation Karina Vasavada Follow this and additional works at: https://soundideas.pugetsound.edu/economics_theses Part of the Economics Commons Recommended Citation Vasavada, Karina, "French Economic Stagnation" (2016). Economics Theses. 101. https://soundideas.pugetsound.edu/economics_theses/101 This Thesis is brought to you for free and open access by the Economics, Department of at Sound Ideas. It has been accepted for inclusion in Economics Theses by an authorized administrator of Sound Ideas. For more information, please contact
[email protected]. French Economic Stagnation Karina Vasavada Abstract This analysis explores the reasons behind French economic stagnation and discusses why this stagnant state is seemingly irrevocable. Based on a detailed look at the economic regime changes, market restructuring, and the resultant policy direction changes in France starting post-World War II, I contend that the reason for France’s current economic stagnation was their decision to join the EU, resulting in the shift away from dirigisme, a government interventionist economic approach, and toward a market oriented economy. While this assertion goes against the prevalent economic assumption that the market can efficiently govern itself, given the trajectory of the French economy post-market orientation this assumption does not hold true. Finally, as a result of the attenuating effects of market restructuring, the state promised excessive social protections to its citizens paralyzing future administrations in the way of policy reforms. Each subsequent attempt has resulted in either minimal change or uprisings and government acquiescence, thereby making stagnation inexorable.