Reforms cause pain for the people. Not for the elite.

"The sorry truth is that both progressives and neoliberals still don't get it and that seems to be true in France most of all," wrote Prof T Cowen. President Emmanuel Macron "increasingly seems to be a well-meaning guy who has been elected in the wrong historical era". What is the problem in France? "The rising prominence of terror, migration and security issues have boosted some of the less salubrious sides of the right wing. Add to that mix wage stagnation and the increasingly common view -- held by 91% in France -- that today's children will not have better lives than parents." France has a structural unemployment level of around 9% with 3 million without the skills that companies want. "We have 2 million unemployed who lack the qualifications to fill jobs," said Macron. "That's what is worrying." Prof Cowen was referring to the protests against a rise in taxes on fuel in France, which would raise the price of a gallon of petrol by 30 cents to $7.36. The cost of a gallon of petrol in the US on 26 November was $2.5-3 per gallon. A French gallon would be 4.54 liters, while a US gallon is 3.785 liters, still the cost of petrol in France is almost double that in the US. Protests turned into riots as people burnt cars, looted shops and fought with the police. At first the government thought about imposing a state of emergency. "It is out of the question that each weekend becomes a meeting or ritual for violence," said a spokesman B Griveaux. "I will always respect differences. I will always listen to opposition, but I will never accept violence," said Macron. "The people are in revolt," said S Lemoussu. "The anger is rising more and more, and the president despises the French. We aren't here to smash things, but the people have had enough." "I thought Macron was asking for trouble when just after his 2017 election victory he staged a victory celebration in which he walked, alone and floodlit, across the courtyard of the Louvre, the old royal palace," wrote Prof R Tombs. "Who does he think he is, I thought, the King of France? Since the Bastille fortress was stormed by the people of Paris on July 14, 1789, the country has got rid of three kings, two emperors and several presidents, and has worked its way, often violently, through 15 constitutions." Macron caved in. He promised to increase minimum wage by 100 euros per month, removed taxes on overtime and cancelled charges on pensions. People are rejecting mainstream parties in favor of populist candidates, wrote Prof B Eichengreen. The solution is to address "the basic grievances responsible for voters' rejection of mainstream politicians and parties in the first place". Which means reforms, which can be painful. Not easy.