Economic Dislocation in France M. Bonnet, the French Finance Minister,
who is the pivotal man in the Chautemps Cabinet, is putting up a brave fight to stabilise, not merely the Budget, but the economic conditions of his country. If M. Blum, while carrying the social reforms that were due and overdue, had refrained from super-imposing upon the dislocation incidental to them that inherent in the gigantic experiment of the 40-hour week, the greater part, perhaps, of the present problem would not exist. As it is, it has been computed that his legislation added over 70 per cent. to the costs of French production ; and higher prices, smaller sales, larger unem- ployment, have been the natural results. An analysis of retail prices prepared by M. Schwob, an economist of standing, shows that the standard of nutrition in the French working class has gone down appreciably since M. Blum took office, the higher wages obtained having been outbalanced by the rise in the cost of living. The loss of purchasing- power by the salaried and rentier classes is even greater, since they have not, as a rule, experienced any rise of nominal income. Retail prices having risen more than wholesale the middleman is naturally blamed.
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