“Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.”
Winston Churchill

“The problem with socialism is that you eventually run out of other people’s money.”
Margaret Thatcher

“Socialism is the same as Communism, only with better English.”
George Bernard Shaw

“Socialism values equality more than liberty.”
Dennis Prager

At a recent dinner party in Paris, I was part of a most interesting conversation. The dinner guests included a few high-ranking government officials, VCs, heads of a few well-known tech internationals, and CEOs. The discussion was around the growth of the tech ecosystem in Paris and the rest of France.

France has a long tradition of pro-union, pro-socialist governments. But the current administration has taken it a step further, coming to power with their tax the rich platform. One of the other steps they took, however, was the main topic of the discussion. The interior minister, who is a lifelong politician, has decided ” to make firing so difficult for companies, they will not think about doing it.”

Clearly this makes theoretical sense to someone who has never held a job in the private sector or has experienced accountability.

There are several important unintended consequences that are impacting the tech ecosystem:

The best companies look with hesitation at any high-caliber candidate who would like to work or remain in France!

Many private schools are losing a large number of families, including their best, brightest, and most accomplished, as they are moving out of France
The foreign VC investment in France is diminishing rapidly.