Macron is open to ideas, Le Pen has closed mind

Whoever comes to power, France will need reforms carried out with skill and resolve

It so happens that the presidential election in France is taking place almost 200 years to the day after the first publication of “On the Principles of Political Economy and Taxation” by legendary British political economist David Ricardo.

On April 20, 1817, the initial 750 copies of the arduous but influential book went on sale. It would be asking too much to summarise the work here. But among the many ideas it contained, one that stands out — and first appeared, actually, in the book’s third edition (1821) — is that a country’s economic evolution faces two obstacles: The first is the Luddites (as English textile workers of that era were called) — the workers, in other words, who worry about job loss because of mechanisation and may be tempted to lash out and break the machines. The second is the landowners, or rent-seekers, who fear that competition, as encouraged and introduced by the public sector, will decrease their earnings.

With rent-seekers, Ricardo was referring to a largely agricultural economy, as was still the case in that period. He advocated lowering rent prices by putting English land and landowners in direct competition with those of France and the United States through free trade.

But even though his analysis was based on agriculture, a means of production that now plays a relatively small role, the economist’s reasoning remains quite relevant today — and is on prime display in the very different economic programmes put forth by Emmanuel Macron and Marine Le Pen, who face off May 7 in the French presidential race.

Two centuries years ago, Ricardo had several reasons for promoting competition. It lowers prices, he reasoned, and therefore improves the purchasing power of the Luddites. That, in turn, makes them more amenable to technological changes. As for the landowning class, it encourages improved performance, since earnings can no longer be guaranteed because of a monopolistic or oligarchic situation.

Economic changes taking place now, just as they did in the early 19th century, still involve the equivalent of Luddites and rent-seekers. Workers want to impose a tax on the use of robots, while the so-called renters defend policies of protectionism. The European Commission in Brussels is accused by both of being an extremist defender of neoliberal competition, at

While far-right presidential candidate Marine Le Pen supports protectionism, Emmanuel Macron wants labour reforms that address competition spurred by technology

their expense. Except these days, compared to Ricardo’s time, competition isn’t just something encouraged by political leaders. It’s also a product of technological advances. New information technologies accentuate competition, putting even more pressure on those looking to maintain their rent income.

Let’s take the example of transportation. Until now, the only real competition that the state-owned French train company SNCF faced was hitchhiking — almost nothing, in other words. But new technologies have changed the landscape. The emergence of ride-hailing apps ultimately forced SNCF to compete.

Pro-competition political leaders had something else in mind: They imagined opening the rail lines to other train companies. But technological progress pushed things in a new direction, and public authorities, at the expense of SNCF, cleared the way for low-cost buses. After the new companies failed to take off, they were dubbed “Macron buses,” since the current candidate, when he was minister of the economy, had pushed for reforms to spur more open, technology-driven competition — what his detractors call the “uberization” of society.

Macron repeatedly tells crowds that the next generation of workers should be prepared to have clients rather than employers. Indeed, along with all the traditional drivers, we now have the salaried drivers of “Macron buses” plus the independent drivers who’ve attracted clients through various internet platforms, including Uber.

Against the rise of this pro-competition logic, Le Pen has staked out a proudly conservative, anti-competition stance with the implicit goal of drawing rent-seekers and Luddites together. Like President Donald Trump, with his promise of reopening coal mines, Le Pen’s National Front explains its hostility toward free trade by pointing a finger at outsourcing, downsizing and layoffs of industrial workers, even if the layoffs are more the result of automation than globalisation.

For the National Front, the goal is to protect jobs, particularly salaried jobs. For Macron’s En Marche! party, the goal is to establish a new labour framework that takes into account technology’s inevitable role in a surge in competition.

Ricardo recommended being firm with rent-seekers and being understanding with Luddites. This was all the more important, he argued, since resistance by those living off rent is political in nature, while Luddite resistance is based on nostalgia. Nowadays, even if the rentseekers try to establish a moral and political high ground for their opposition by denouncing the commodification of society, it’s clear that they’re also, in a sense, Luddites at heart. The situation requires, therefore, reforms that are carried out with skill and understanding, but also resolve.