Industrial production at the level of the 80s (and then they talk about productivity)
Canale Sovranista, a young man who is very interested in the economy and in the dissemination of knowledge of real economic statistical data. A final elaboration prepared by him allows us to admire, and to suffer, for the trend of Italian industrial production in the last 70 years, both as absolute values and as annual variation, always based on the elaboration of ISTAT data
Italian industrial production is at 1988 levels, nothing but growth. Compared to 2001, the reference year, we are down by 16%, nothing but growth with the introduction of the Euro.
This also has heavy repercussions from the point of view of productivity: even if TV economists speak of productivity as something that develops with willpower, also to make us feel guilty, labor productivity is a function of production volumes , as Kaldor Verdoorn's law well underlines, productivity, seen as marginal returns from production, is a function of production volumes. Increases in production volumes cause improvements in marginal productivity. This is due to a series of factors from the growth of know-how, to economies of scale, to the creation of industrial districts. Therefore, by cutting production volumes, productivity collapses, even if this displeases the various television economists. Only an increase in production volumes (therefore in internal and external demand) can help us.
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The article Industrial production at the level of the 80s (and then they talk about productivity) comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/produzione-industriale-al-livello-degli-anni-80-e-poi-parlano-di-produttivita/ on Sat, 18 Feb 2023 17:15:12 +0000.