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The Adam Smith Institute
The Adam Smith Institute is the UK's leading innovator of free-market policies. Named after the great Scottish economist and author of The Wealth of Nations, its guiding principles are free markets and a free society. It researches practical ways to inject choice and competition into public services, extend personal freedom, reduce taxes, prune back regulation, and cut government waste.
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Time to dump France?
By Dr Eamonn Butler
A French judge has ordered the Swiss food giant Nestle to re-open a loss-making factory outside Marseilles. It closed in June after nine years of problems, due largely to falling demand for the decaf coffee it produced, leaving it running at 30% of capacity. Nestle offered all 427 workers other jobs within the group, or early retirement. But this was not enough for the French authorities, who say Nestle have breached their strict code on factory closures. In the Fairyland of France, forcing investors to pay people to make stuff that people no longer want might look sensible. Elsewhere it looks plain daft. How will you keep up with today's needs if you lock workers into producing for yesterday's needs? And if future investors think you might force them to produce loss-making lines - well, there is a whole world they can take their money to instead. As we've seen from the 'bra wars', such protectionism is now rife in the EU. But I doubt that most EU countries are this daft - they've just been infected by France. MEP Dan Hannan says we should escape the infection by leaving the EU. It might actually be more efficient for the EU to get rid of France, and allow the rest of us to recover from this madness. Feedback
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Adam Smith Institute Tel +44 (0)20 7222 4995
Adam Smith was the great Scottish philosopher and economist best known for "The Wealth of Nations", his pioneering book on free trade and market economics.
A wide selection of material about Adam Smith is now available on the Adam Smith website. This includes the full text of his two major works, The Theory of Moral Sentiments and The Wealth of Nations. |