420 BILLION DAMAGES TO SMEs. The government reimburses the crumbs, while the big corporations laugh
The Mestre CGIA informs us , right around Christmas, of the real damage caused by anti-COVID government policies on the Italian economy and, in general, also on the large Internet companies.
The results are breathtaking due to the severity of the damage to the structure of our economy, such that there is a strong doubt that it can be recovered. We recall that the Italian GDP was around 1,800 billion in 2019, of which, however, about half is linked to the public sector.
According to the Mestre CGIA, the damage caused to Italian companies by the government policy linked to Covid.-19 was equal to 420 billion euros.
What did the government cover for these losses? 6.9% scarce. Now you will say "Well, the turnover is also made up of purchase costs, the important thing is to cover the losses and allow the companies to survive". Here you are wrong: the supply costs for one company are the turnover of another, so those 420 billion, in the end, are mostly business losses.
However, someone will have gained q in this situation. Who ?
Here are the results of the analysis of the CGIA of Mestre:
While the turnover of SMEs in the Italian system fell by 13.5% on average, that of the WEB multinationals grew by 17% in the first quarter alone. This is the result of the push towards long-distance relationships, towards Telework, towards “Stay at home, there is so much Netflix (and its mediocre productions)”. And our companies? All for a while, with no money. Then we will see with what money Netflix subscriptions will be paid.
The state paid only minimal amounts of reimbursements. On the contrary, we need to move from the idea of the "Refreshment", the shortage to survive, to that of the "Refund", in which the State takes responsibility for its policy towards Covid-19, made up of very tight lockdowns and we do not know how justified .
In the end, direct and indirect aid to businesses amounted to only 29 billion, against 420 billion in turnover losses. It doesn't take long to understand that with this loss, companies will jump like popcorn between December and February, with the destruction of capital on one side and huge social problems on the other.
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Article 420 BILLION DAMAGES TO SMEs. The government reimburses the crumbs, while the big companies laugh comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/420-miliardi-di-danni-alle-pmi-il-governo-rimborsa-le-briciole-mentre-le-grandi-societa-ridono/ on Sat, 26 Dec 2020 13:26:48 +0000.