Arson is a form of commentary favored by the French left, so at least 1,000 vehicles were torched by disappointed supporters of the Socialist presidential candidate Segolene Royal after she was defeated 53-47 by Nicolas Sarkozy. Last spring, rioting was the left's economic argument when the government proposed, then retreated from, legislation that would have made it somewhat easier for businesses to fire younger workers in the first two years of employment. The idea behind the legislation was that employers would be more likely to hire workers if it were not a legal ordeal to fire them. The rioters were, of course, mostly young.
France's unemployment rate is 8.7 percent, nearly double the U.S. rate of 4.5 percent. Among persons under age 25, a cohort that supported Royal, the rate is 21.2 percent, and is apt to stay there unless Sarkozy can implement reforms that irritate rioters.
Sarkozy has a mandate from an 84 percent turnout. Seen, however, in the flickering glow of smoldering Peugeots, his chances of fundamentally reforming France seem fragile, and his idea of fundamental reform -- he remains an ardent protectionist -- seems pallid. Nevertheless, his attempt merits Americans' attention because he is confronting, in an especially virulent form, a problem that is becoming more acute here. The problem is the cultural contradictions of the welfare state.
Two decades ago, the sociologist Daniel Bell wrote about ``the cultural contradictions of capitalism'' to express this worry: Capitalism flourishes because of virtues that its flourishing undermines. Its success requires thrift, industriousness and deferral of gratifications, but that success produces abundance, expanding leisure and the emancipation of appetites, all of which weaken capitalism's moral prerequisites.
The cultural contradictions of welfare states are comparable. Such states presuppose economic dynamism sufficient to generate investments, job-creation, corporate profits and individuals' incomes from which come tax revenues needed to fund entitlements. But welfare states produce in citizens an entitlement mentality and a low pain threshold. That mentality inflames appetites for more entitlements, broadly construed to include all government benefits and protections that contribute to welfare understood as material well-being, enhanced security and enlarged leisure.
The low pain threshold causes a ruinous flinch from the rigors, insecurities, uncertainties and dislocations inherent in the creative destruction of dynamic capitalism. The flinch takes the form of protectionism, regulations and other government-imposed inefficiencies that impede the economic growth that the welfare state requires.
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