French Debts Could End Up ‘Gone With the Wind,’ If Far-Left’s Tactic Is Embraced

Euphemisms have their uses. They can facilitate the transition of an idea from something unthinkable to something discussable, en route to becoming part of normal political discourse. Historians might someday conclude that an example of this began in 2026, when a French presidential candidate made a hitherto fringe idea central to his campaign.Jean-Luc Mélenchon, 75, from the far left of the left, favors “freezing” a portion of France’s national debt, the size of which is 119 percent of the nation’s gross domestic product. Sometimes he calls for “canceling” the portion. Or vows that as president he would “take” it. He avoids a straightforward noun that denotes the policy of borrowing money and then breaking the promise to repay it: “theft.”Precision is not Mr. Mélenchon’s strong suit, but he is reasonably clear that he has in mind the 15 percent of French bonds held by the Bank of France. He might, or might not, have only those in mind when he talks about throwing bonds “into the fire” or putting them “in the fridge.” Hard-left leader Jean-Luc Mélenchon delivers his speech at his election night headquarters, June 19, 2022. AP/Michel EulerHe says “no one will ever notice that they’ve disappeared,” and a poll shows a French plurality thinks coping with the national debt by repudiating some of it is a neat idea.In the short — very short — term this might avoid unpleasant measures (increased taxes, decreased social benefits). A French plurality might dislike the consequences of France, the European Union’s second-largest economy, paying future interest rates appropriate for a rogue borrower and thief.Yet many nations, including the United States, often have a plurality who regard many problems as Scarlett O’Hara did in “Gone With the Wind”: “I can’t think about that right now. … I’ll think about that tomorrow.” The comforting assumption is that “Annie” of the Broadway musical was right: Tomorrow is always a day away.A few days ago, the American 2026 fiscal year ended. According to the Committee for a Responsible Federal Budget, with economic growth strong and unemployment low, the federal government nevertheless spent 22.9 percent of gross domestic product ($7.4 trillion) while raising revenue of just 16.7 percent of GDP ($5.4 trillion). This $2 trillion deficit is a (redundant) reminder: The sound and fury of this autumn’s politics signifies nothing but the bipartisan determination to talk about anything (data centers are the distraction-du-jour) other than the most important thing: the ruinous consensus beneath today’s performative rancor.Both parties are committed, behaviorally if not ideologically, to running huge deficits at every point in the business cycle. As a result, interest costs, which were $241 billion in fiscal 2016, have more than tripled in 10 years, to $1.1 trillion.As the cost of servicing the national debt will drive future annual budget deficits up from $2 trillion, something else will increase commensurately: the temptation of repudiation. Inflation is slow-motion repudiation of debt. It means only nominally repaying borrowed dollars, using ones of substantially diminished value.Yes, the Federal Reserve says 2 percent inflation is its “target.” But that target has not been hit for 66 months. When does a target become something less — less than an expectation or even an aspiration, just a hope? How long before, say, 3 percent, or even 4 percent, becomes the de facto target because it is regularly achieved?In the making of economic policies, reality — a.k.a. the bond market — gets a vote. And what it says loudly can have long echoes.Recently, mortgage rates have risen to 7.5 percent, which exacerbates the problem of the rising cost of new houses. This is partly because of tariffs on imported construction materials, and partly because of labor shortages caused by deportations of many construction workers.Housing is the largest purchase most Americans make, and becomes the most substantial portion of their net worth. For most young adults, homeownership is the most important component of economic security. So, high interest rates exacerbate the inequality and frustration that today deepen the sourness of politics.It is tempting for Americans to criticize French social values and economic policies that produce strange politics. But remember the rule that people in glass houses should not throw stones.French polls indicate that Mr. Mélenchon, who supports the current rioters, might qualify for the second and final round of next year’s French presidential election. He might then be running against Marine Le Pen, from the far right. The phrase “President Mélenchon” seems far-fetched today. But is it more so than “President Trump” seemed in 2015?France’s identity is partly defined by a 15th-century woman, Joan of Arc. Today, the United States takes its inspiration from a 19th-century woman named Scarlett.The Washington Post

French Debts Could End Up ‘Gone With the Wind,’ If Far-Left’s Tactic Is Embraced

French Debts Could End Up ‘Gone With the Wind,’ If Far-Left’s Tactic Is Embraced

More from the New York Sun

Russia and Ukraine Bomb Their Way Through Trump’s ‘Ceasefire’

Conservative Influencers Offer Alternative Explanations After Ohio Mental Health Facility Refutes Viral Claim Talarico Was a Patient

Democrats Outpace Early Voting Share Compared to 2024, 2022 in Key States

Columbus Day Is for All Americans — Thanks to Benjamin Harrison

Attention Deficit Documentary Disorder

Unbeknownst to Zelensky, Trump Announces Ceasefire Between Russia and Ukraine on Energy Infrastructure

Bessent Berates Warren in Caustic Letter, Accuses Top Democrat and Staff of Financial Illiteracy

Beats Changes Its Tune

More from the New York Sun

Russia and Ukraine Bomb Their Way Through Trump’s ‘Ceasefire’

Conservative Influencers Offer Alternative Explanations After Ohio Mental Health Facility Refutes Viral Claim Talarico Was a Patient

Democrats Outpace Early Voting Share Compared to 2024, 2022 in Key States

Columbus Day Is for All Americans — Thanks to Benjamin Harrison

Attention Deficit Documentary Disorder

Unbeknownst to Zelensky, Trump Announces Ceasefire Between Russia and Ukraine on Energy Infrastructure

Bessent Berates Warren in Caustic Letter, Accuses Top Democrat and Staff of Financial Illiteracy

Beats Changes Its Tune