4 ms·

> - Countries with broken economy like Italy win Check out this Twitter thread from an Austrian Economist PhD for some data points against that old and outdate

> - Countries with broken economy like Italy win Check out this Twitter thread from an Austrian Economist PhD for some data points against that old and outdated stereotype: https://twitter.com/heimbergecon/status/1539486969977360384 https://twitter.com/heimbergecon/status/1539486969977360384

skippyboxedhero 4y ago
That isn't news. The reason why Italy runs a trade surplus is because they are forced into running a primary surplus by deflationist policies from the German bloc. The reason private debt is relatively low is because their banks largely do not function and have turned into bailout mechanisms (and Italy had to take the step of bailing in private investors because they were unable to finance their debt, given the relatively large size of the banking sector, this basically froze their financial markets). Correct, Italy has run primary surpluses since the 90s...their debt is 150% of GDP, the conclusion is what? The other stuff is largely false...but assume it isn't, what is the explanation for Draghi's reforms? Youth unemployment is 35% (for reference, this is higher than many places in Africa). People confuse the policies that have been forced on Italy due to Germany's ordo-liberalism, and actual economic strength. Also, there is massive regional inequality within Italy. Some regions in the North are basically Germany. The companies are run by Germans, the investors are German, the population largely speak German. Those areas, it is true, do well. But if you are looking at Southern Italy, there are huge problems (and btw, anyone who is trying to tell you the opposite has an agenda, I have never seen this outside the context of "...so ordo-liberalism works, it must continue, deflationism works"...because if it is true that Italy is a basketcase, which it is then people start asking whether a fixed exchange rate is a good idea...which it isn't).
- emanuele232 4y ago
  I agree with 3/4 of this comment, but the only region run by germans is Trentino, there are a couple regions that run on their own (Lombardia, Veneto and Piemonte). Said that, the more south you go the worse things get, and if you pass Rome the situation is tragic
  - skippyboxedhero 4y ago
    Correct, and with South Tyrol that region has a disproportionate share of Italy's manufacturing industry (I suppose it is Austrian, not really German). Again though, what is the perspective...Turin is a famous manufacturing city but is still in decline, and is fairly grim overall...and that is supposed to be the part that works for citizens (same is true of Milan, which is a services hub so even more insulated from the decline that hit Turin...still grim, still in decline). Btw, I think out of any place in Europe, Italy has the most economic potential. They have the financial markets, they have the universities, they have the people...but it is unfortunate that the only context in which they are presented as economically successful is within an agenda that attempts to further the status quo that has served them so poorly. If Italy stops believing in ordo-liberalism, they can grow.

skippyboxedhero 4y ago

That isn't news. The reason why Italy runs a trade surplus is because they are forced into running a primary surplus by deflationist policies from the German bloc. The reason private debt is relatively low is because their banks largely do not function and have turned into bailout mechanisms (and Italy had to take the step of bailing in private investors because they were unable to finance their debt, given the relatively large size of the banking sector, this basically froze their financial markets). Correct, Italy has run primary surpluses since the 90s...their debt is 150% of GDP, the conclusion is what? The other stuff is largely false...but assume it isn't, what is the explanation for Draghi's reforms? Youth unemployment is 35% (for reference, this is higher than many places in Africa). People confuse the policies that have been forced on Italy due to Germany's ordo-liberalism, and actual economic strength. Also, there is massive regional inequality within Italy. Some regions in the North are basically Germany. The companies are run by Germans, the investors are German, the population largely speak German. Those areas, it is true, do well. But if you are looking at Southern Italy, there are huge problems (and btw, anyone who is trying to tell you the opposite has an agenda, I have never seen this outside the context of "...so ordo-liberalism works, it must continue, deflationism works"...because if it is true that Italy is a basketcase, which it is then people start asking whether a fixed exchange rate is a good idea...which it isn't).

emanuele232 4y ago
I agree with 3/4 of this comment, but the only region run by germans is Trentino, there are a couple regions that run on their own (Lombardia, Veneto and Piemonte). Said that, the more south you go the worse things get, and if you pass Rome the situation is tragic
- skippyboxedhero 4y ago
  Correct, and with South Tyrol that region has a disproportionate share of Italy's manufacturing industry (I suppose it is Austrian, not really German). Again though, what is the perspective...Turin is a famous manufacturing city but is still in decline, and is fairly grim overall...and that is supposed to be the part that works for citizens (same is true of Milan, which is a services hub so even more insulated from the decline that hit Turin...still grim, still in decline). Btw, I think out of any place in Europe, Italy has the most economic potential. They have the financial markets, they have the universities, they have the people...but it is unfortunate that the only context in which they are presented as economically successful is within an agenda that attempts to further the status quo that has served them so poorly. If Italy stops believing in ordo-liberalism, they can grow.