Where is the French revolution on the move heading? by Pierre Sarton du Jonchay

Guest post. The French version is here.

The generalisation of unemployment insurance to all entrepreneurs is a break with ordo-liberalism and a practical and paradigmatic entry into the universal knowledge-based economy. Work recognized as such by labour law is no longer defined as a subordination to an employer who is the sole owner of the surplus value, but as an investment by the individual entrepreneur in a production of potential surplus value for society as a whole. Salary and income are no longer the remuneration for submitting to the virtual financial power of capital, but the price fixed by the political society of the individual enterprise and innovation effort for the possible benefit of society as a whole. Capital is once again the fruit of labour and not the rent of speculative engineering.

The systemic refinancing of unemployment insurance by the State above employers and employee associations places work and its employment as a common good of the political society. It is another way of entering into universal income where income is not conditioned on submission to private interests but ordered in the service of the general interest by the personal enterprise of research, investment, innovation and production. This rehabilitation in a single country, in this case France, of the real economy over the global liberal economy of virtual financial profitability will be in direct opposition to the monetary mechanism of free circulation of virtual capital.

France, as a part of the euro area, cannot implement its own definition of work, added value and income. The fixed exchange rate between all euro Member States means that capital liquidity is located where private capital gains are greatest due to the minimum capital requirements for employing labour and to the lowest public expenditure on personal income redistribution and social security. Banking secrecy on the real origins of capital gains and the control of credit policies by private interests make the general public interest impotent to be integrated in the economic calculation of the general equilibrium of prices and the real monetary distribution of value added.

To finance its new insurance model for labour, employment and enterprise, France will initially have no other option but to accelerate the growth of its domestic and foreign debt. In order for French debt to be sustainable in relation to its economic reality, it will quickly appear:

  • that the added value, whether domestic or imported, consumed by the French must finance all social insurance provided to residents;
  • that the place of consumption of value added must be traced in payments in euro in order to guarantee the financing of a domestic public expenditure objectively distinct from other euro Member States;
  • that the status of French resident associated with a specific social insurance policy must be the reason for specific taxation through the interbank euro payment system, i. e. taxation of financial flows according to the purpose and nationality of the payer;
  • that the production processes which are at the origin of a capital gain and its distribution must be traced within the bank credit accounting system in order to establish the legal and political responsibility of each professional player producing the distributable value added through direct or indirect, public and private monetary income.

The new French model of insurance of work by enterprise is incompatible with the current liberal monetary and financial system. In order to ensure the work of both the entrepreneur and the employee, it is necessary that a credit in a bank account is associated with the written identification of the legitimate real causes of the added value produced or to be produced. It is necessary to register the causes of any income connected with people who work and undertake in relation to the demand for legitimate real value of a political society bounded by the same body of laws. It is necessary to include the personal production of governance, laws, standards and justice in the price of any added value to be produced against a credit in currency that frees up debts over time.

It is still necessary for the payment system to guarantee that every player in the value added actually consumed receives its share of the price finally settled by interbank flows. Therefore, public legal entities that ensure the labour, business and existence rights of natural persons must be financed and controlled by inescapable objective taxation of financial flows. Between two insurance corporations, a reciprocal reinsurance arrangement involves devaluing the unit of account of an entity whose capital premium is negative in relation to the entity with a positive capital premium. The financial solidarity of insured persons means the restoration of the state as the reinsurer of last resort, i. e. the variability of the monetary parity of the states with respect to each other in a common currency zone.

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