According to Letta, more immigrants are needed instead of decent wages; Here because.

The words of Enrico Letta have aroused a certain uproar. In recent days he has let himself go against the typical deductions of the center-left house of neoliberalism and right-wing mercantilism.

The fact is that the Letta "thought" risks making a breach among all those – and there are many; too many – who do not know the causes and consequences of this way of thinking.
We take advantage of the umpteenth opportunity offered by these progressives to clarify the issue of unemployment and low wages in Italy, hoping that the article will circulate especially among those who are fasting in the macro economy.

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Enrico Letta: more immigrants are needed to fill jobs

It was at Porta a Porta that Letta said he was convinced that: “ In many fields we must understand that we probably need labor that comes from immigration. There are very few young Italians, our entrepreneurial system needs manpower “.

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The real data on unemployment that Letta ignores

According to the EU's own surveys, the real data on European unemployment would be underestimated.
One of these concerns the inactive, i.e. all those who have lost all hope of finding work and have stopped looking for it. Ditto for those who appear to have worked at least an hour a week.
So according to official estimates these subjects are not included in the unemployed category, and so with a swipe of the sponge they are made to disappear from the statistics.
Therefore, according to the EU itself, the number of official unemployed would be at least double than what the statistics indicate.

We see in the following graphs, taken from the book of easy explained economics; source Eurostat , what would be the real unemployment:

From these data it appears therefore that official unemployment in Italy is 42% of the real one.

It follows that the lack of manpower in restaurants and manufacturing companies is not due to the sudden nuclearization of young Italians or the flight of dishwashers, as Letta claims.

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Why do we have such low wages in Italy?

As we have amply demonstrated in chapter VIII of the book of easy-to-explain economics , the decline in wages follows a chain of upstream factors that we summarize very briefly:

1. the euro is a currency fixed at an intermediate FIXED exchange rate between the various members (German mark, Italian lira, French franc, etc.) higher than the fundamentals of our economy;
2. a change that Italy cannot afford means that the prices of its products are invariably higher than those expressed in lire. Therefore its products are less competitive on the global market;
3. low competitiveness leads to a drop in both domestic and foreign demand; or the drop in consumption.
   This outlines prospects that are not very stimulating from the point of view of investments, because we find ourselves in an unattractive market, both for foreigners and for national companies;
4. the rigidity of the exchange in step 1, produces the price fluctuation impossibility – of fixed costs and supply of raw materials within the European boundaries – which leads to the devaluation of the work, as the only component that can be reduced to try to lower production costs and therefore gain competitiveness;
5. the reduction of wages will discourage the worker both to look for work and to increase their skills, because they are devalued on the market;
6. the reduction of workers' skills and the fall in wages incentivize the employer to prefer the same performance – the worker willing to receive a lower wage;

The vicious circle that is established is the following:

the decline in competitiveness produces> a fall in wages and consequently> a fall in consumption (or an increase in private debt to compensate for the fall in wages) which> makes the market less attractive and> unable to attract investments> etc.

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TIRED OF BEING EXPLOITED?

BUY IT NOW

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Therefore, when Letta added: “ So, for reasons of all kinds, we must conceive our future with a greater capacity for acceptance and integration “.

He meant that one of these reasons is the exploitation necessary to keep Italy afloat but to which the Italians ( Choosy? Bamboccioni? ) No longer intend to submit.

So we need to attract slaves, not investments.

Non pago Letta added that we must: “ get out of the generalized layoffs ” to take the path of “ selectivity ”.

That is, we must begin to examine the possibility that we can go back to firing.
It will only be necessary to have a bit of aim in packing the right redundancies.
If nothing else, those who lose their jobs have a good chance of finding one in catering, if the Letta solution does not arrive first.

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The article Secondo Letta serves more immigrants instead of decent wages; Here because. comes from ScenariEconomici.it .

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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/secondo-letta-servono-piu-immigrati/ on Mon, 07 Jun 2021 10:12:14 +0000.