Lthe French left has a problem with the exercise of power, and this problem is often economic. Three times in the XXand century, “cartel” (in 1924), “front” (in 1936) or “union” (in 1981) alliances had to leave power or drastically refocus their economic policy because of the confrontation with the ” real “, according to the interpretation of some, or with the “silver wall”, according to the interpretation of others.
In fact, it is on the financial markets that distrust is expressed and that constraint is exerted: with the stock market crash, but above all the flight of capital and the monetary depreciation, and even more because of the difficulties of public debt financing. Even a new government, such as the Cartel des Gauches (1924-1926), with the classic objectives of monetary stability and balanced budgets, did not have the possibility of governing, such was the rapid financial destabilization.
This destabilization generally results, in France as elsewhere, from financial arbitrations in anticipation of an increase in taxes on capital or on high incomes. Now, paradoxically, what we have left of the left in power is not new spending or new taxes, nor even wage increases – often absorbed by inflation – but the strengthening of democracy in the companies and administrations, the increase in the powers of the State or the reduction of working hours. Measures that have transformed economic and social life. Such transformations may encounter fierce political opposition, but not a backlash from the markets, as their financial impact is neither immediate nor easily predictable.
Feeling of injustice
Thus, in 1924, the efforts devoted to creating a tax on capital led to capital flight, the depreciation of the franc and inflation, while the difficulties of renewing the floating debt led to the final clash with the Banque de France (still private) and the fall of the government. And this, even though the budget was practically balanced. On the other hand, the right to organize granted to civil servants remains a legacy of the cartel.
In 1936, the salary increases obtained by the strikes and then by the Matignon agreements in June were quickly eroded by inflation, and the inevitable devaluation contributed to carrying the government away, but trade union rights, the collective labor contract, the paid holidays, the forty-hour week will continue and change the lives of employees.
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