How Italy is self destructing itself – a proposal from an ignorant guy

The Eurozone crisis has already took Greece, Spain and Italy. I can observe only my country from here, so I’ll talk about Italy.
We live in a country where salaries are stuck since 20 years, unemployment for younger than 24 is over 36% and work taxation is over 42%. We have a technical government since November 2011 that is trying to recover the economic gap that Italy historically suffers, but our outlooks don’t indicate nothing good for the future.

Italy is a land where about 60 millions live as coaches during the world cup, and 60 millions of political leaders live everyday, giving the “perfect solution” for our rebrith while drinking at pubs. Today I want to give my “solution”, even if I know there is not a single recipe for our situation, but there are so many obvious problems here, that inventing a bootstrap to make Italy “reboot” is so handy nowadays. In three steps.

  • Liberalize the job market – NOBODY is hiring since years in Italy, everyone knows but this is still a “secret”. The only companies that are (rarely) still hiring are very small (less than 15 employees), so they aren’t subordinate to our law no. 18, that forbids to dismiss people without a valid reason. The american job market is not a perfect model, but the reality is that there a flourishing ecosystem exists, where productive people find a job without problems, a job that is commensurate to their school qualification and to their willing. You can lose your job in a week, but entrepreneurs are not crazy or (usually) “evil”. If you do your work nobody will fire you, unless the company has financial problems – and this also happens here everyday, irrispectively of our many tade unions;
  • De-tax companies – The tax pression is objectively too high. And I’m not talking only about taxes on work: the majority of companies are totally overhelmed, so a vicious circle is settled: the government ask for more taxes; companies find a way to evade them; the government asks for more taxes to cover the missing income. Nobody wins here, and this system bring also the impossibility to make sure plans for the future, because the fiscal incomings for the next year depends also from the cleverness that companies had in avoiding a part of the taxes for the current one. If we didn’t pay any tax for 2011, we would have hire at least two new full-time employees in our company – two new persons able to pay their taxes to Italy! And so, why don’t you lower taxes by – let’s say – 80% for the next 5 years, to let us catch that 36% of young people that is currently unemployed? The economy will get an huge benefit from a new population able to spend, finally. And don’t forget the possibility to get a lot of foreign businesses (or italian business that delocalized in the past years) that will see an interesting country to settle and operate.
  • Eradicate crime from south – Italy suffers a big economic brake from the southern territories, that are controlled from organized crime. Certain political parts would like to “cut” our country in two pars, but this is not the solution, anyway, it’s enough: let’s use our army (that we’re paying since decades without sense) to guard the entire south, let’s install security cameras in every local shop to defeat the protection money habit (yes, it’s still the normality, there!), let’s rotate the local governments every six months with a mixure of italian and european administrators, to exclude the possibility of crime infiltrations.

Is this sufficient? Probabily not, but an Italy with a 2% of unemployment, full of healty companies and without the mafia would be a dream.

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