Because the relaunch of Italy also passes through the budget law

Because the relaunch of Italy also passes through the budget law

"Re-launching a fairer and more equitable school, of quality for all, which gives our young people the professional skills to act freely and produce income tomorrow, to repay the debt that we are signing for them today". The intervention of Sister Anna Monia Alfieri

A coffee will cost € 1.30. The increase of a coffee at the bar, however banal, is always the tip of the iceberg of the increase in prices which has much deeper roots and is characteristic in historical courses and resorts.

Not all price increases are worrying and not in all historical moments. Let's try to understand what is happening to the post-covid Italian economy.

The increase in prices worries citizens but also analysts, as it is a consequence not of an increase in consumption but of their reduction.

In fact, there is a “positive” inflation resulting from an increase in demand, which results in an increase in prices; when this inflation is contained it is positive. Evidently, however, the current inflation is worrying because it sees an increase in prices but in the context of a stalled economy. And in addition in a post covid time.

We have to think that our economy is like a car that has been parked in the garage for an entire winter season, without ever having been started or moved in any way. To get it started it needs an overhaul, perhaps even extraordinary interventions, at least a battery change. Here, this is the Italian economy that is gradually trying to restart, but will not be able to reach full capacity as in the previous season, if not following extraordinary interventions.

To be even more concrete, the Italian economy is like an economy emerging from a world war, which has been stuck for months, which is now involved in a new "Marshall Plan", but which has yet to prove that it knows how to put it to good use. in transparency and without waste.

Having said that, let's try to understand why prices have risen, precisely because the solution lies in the problem. The blockade of the economy caused the increase in the prices of raw materials; this increases production costs and all this, at the end of the production chain, is passed on to the final consumers.

Understandably, people no longer have the same purchasing power as before, because they have lost their jobs, run out of savings and, for those who still might, fear of spending has also set in.

This produces stagnation for the economy. Prices are rising, consumption is decreasing, businesses get into debt, forced to go bankrupt or close and lay off their staff. Parallel to the reduction of citizens' purchasing capacity, interest rates increase, with real difficulties for those with a home loan to pay the installments.

This is the heart of the matter: the only solution is an injection of hope and positivity into the Italian economy. The budget law represents an unprecedented opportunity to relaunch the country through the economy and education.

Re-launching the economy means investing in the entrepreneurial capacity of citizens who produce income for themselves and for others, triggering that process of circular subsidiarity that has been interrupted due to the logic of social welfare. If jobs are created, businesses can recover the increase in raw materials from the price increases that consumers will be able to sustain. A virtuous circle is triggered and we start again. The State is rediscovered capable of investing in citizens' freedoms, maintaining for itself the role of social parachute to heal contingent poverty with the subsidies that are used to survive, but which must then favor full reintegration into the world of work. There will be a new economic boom like after the Second World War.

Re-launching a fairer and more equitable school, of quality for all, which gives our young people the professional skills to act freely and generate income tomorrow, to repay the debt that we are signing for them today.

Only in this way the country of Italy restarts and demagogic readings are overcome. To this end it is necessary that all political forces, none excluded, the media, every man and woman of good will in these hours concentrate on the budget law, postponing other palace issues at the appropriate time.


This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/mondo/perche-il-rilancio-dellitalia-passa-anche-dalla-legge-di-bilancio/ on Wed, 24 Nov 2021 15:36:25 +0000.