seizure of many factories and stores. The strikes were spontaneous and unorganized, but nevertheless the business community panicked and met secretly with Blum, Who negotiated a series of reforms, and then gave labor unions the credit for the Matignon Accords. The new laws: confirmed the right to strike generalised collective bargaining enacted the law mandating 12 days of paid annual leave enacted the law limiting the working week to 40 hours (outside of overtime) raised wages (15% for the lowest-paid workers, and 7% for the relatively well-paid) stipulated that employers would recognise shop stewards. ensured that there would be no retaliation against strikers. created a national Office du blé (Grain Board or Wheat Office, through which the government helped to market agricultural produce at fair prices for farmers) to stabilise prices and curb speculation nationalised the arms industries made loans to small and medium-sized industries began a major public works programme raised the pay, pensions, and allowances of public-sector workers The 1920 Sales Tax, opposed by the Left as a tax on consumers, was abolished and replaced by a production tax, which was considered to be a tax on the producer instead of the consumer. Blum persuaded the workers to accept pay raises and go back to work. Wages increased sharply, in two years the national average was up 48 percent. However inflation also rose 46%. The imposition of the 40-hour week proved highly inefficient, as industry had a difficult time adjusting to it. The economic confusion hindered the rearmament effort, and the rapid growth of German armaments alarmed Blum. He launched a major program to speed up arms production. The cost forced the abandonment of the social reform programs of the popular front had counted heavily on. Legacy of Popular Front Economic historians point to numerous bad financial and economic policies, such as delayed devaluation of the franc, which made French exports uncompetitive. Economists especially emphasize the bad effects of the 40-hour week, which made overtime illegal, forcing employers to stop work or to replace their best workers with inferior and less experienced workers when that 40-hour limit was reached. More generally the argument is made that France could not afford the labor reforms, in the face of poor economic conditions, the fears of the business community and the threat of Nazi Germany. Some historians have judged the Popular Front a failure in terms of economics, foreign policy, and