I now have a new channel focusing exclusively on European and global economies, with more videos like this, please check it out! This video looks at the problems facing the German economy. kzread.info/dash/bejne/gX-ppdaRh7qqoM4.html

UK in the 2000s: we will never be like Italy, chronic political instability and low wages UK in the 2020s: Italy has nice fashion and weather you know?

@monipenny408

7 ай бұрын

sadly, it is just an illusion, the whole of EU is headed into the abyss no matter where you go. fact! Just look around buddy but good luck anyway

@gabrielsilva-pl3dx

5 ай бұрын

And beautiful people

@Ezekiel903

5 ай бұрын

and biggest saving p. capita in EU, largest ship manufacturer in EU, 4 biggest in the world! 2 largest manufacturer in EU, only behind Germany! France and UK are only in front bcz of their service sector like banks eccetera! UK has lost most of it's manufacturing capabilities! Italian investment like Stellantis Agnelli, FIAT or Leonardo are big player. Italy 2023 growth was bigger as Germany! Enel Italy, energy provider is one of the largest ww! I think Italy and Poland will become the two leading economies in EU.

I feel like the UK is headed down the same road, after the financial crash. A rapid rise of cronyism/rent seeking and falling human capital.

@theguy9067

7 ай бұрын

I agree but I think the cause is general public sector growth, government overreach, government over responsibility, higher taxes. In general anti capitalism and socialism is stifling productivity, chasing productive people to friendlier countries

@bbasleigh6149

7 ай бұрын

Europe since 2022 with sanctions on Russia cutting out cheap Russian gas in tailspin. Germany in recession. War against Russia was never a good idea. US in trade war trying to sort out their trade deficit?

@mariog1051

7 ай бұрын

as an Italian migrated to the UK a few years ago, I'm starting to see worrying Italian trends taking place in the UK

@tomjones8715

7 ай бұрын

You miss the obvious with rents…

@tom4od

6 ай бұрын

Yeah but the UK Government will happily replace the UK workforce with migrants rather than make having kids more affordable. Great for the economy, terrible for the local population.

You have one of the best economic channels in KZread. Why don’t you have more views?

@Ezekiel903

5 ай бұрын

Italy had a larger growth then Germany 2023, Italian have the biggest savings p. capita in Europe, more as we Swiss! Italy is the largest shipbuilder in Europe, the 4 largest in the world! Beside that Italy is the 2 largest manufacturer in Europe, yes before France and UK, France, UK is only in front in the service sector, Banks eccetera. 2023 Italy had a bigger growth as Germany. Stellantis, Leonardo, this are large groups owned by Italian private and state companies.The high tech sector is well established! In Swiss we need a steady influx of migrants only to secure our rents, Japan has the same issue, low population growth and old population+200% debt, Italians have the biggest savings p. capita in the EU, yes higher as we Swiss! I don't think Italy has a lot of trouble compared to other countries, I mean France is not in a much better shape, yes maybe thanks to their colonies, but otherwise,Germany, we have so many German migrants in Swiss bcz of their decline in the industry!! UK is in a bad shape in my opinion, bcz they rely too much on the service business, we see it already struggling! We will see but I think Italy will become a mayor player, together with Poland, maybe Spain, but Germany, UK will face a huge decline, mark my words!

@Ezekiel903

5 ай бұрын

@@TonyParmesano-zl6ls how?? Italy is the second largest contributor!

@Ezekiel903

4 ай бұрын

@@TonyParmesano-zl6ls how??? if Italy is the second largest netto contributor to EU?? stop repeating this Bild lies!

In the initial draft of video, I had an introduction on why Italy is top 5 destination for tourism, it's not all about productivity and GDP. There's also a great line in the film Third Man by Orson Wells, where his character compares the chaos of Italy and calm of Switzerland but pointing out Italy "produced Michelangelo, Leonardo da Vinci, and the Renaissance" Text version of video is here. www.economicshelp.org/blog/214735/economics/italys-economic-decline/

@rolandnelson6722

7 ай бұрын

Cuckoo clocks!

@johnconlon2207

7 ай бұрын

Logical flaw. Post hoc ergo propter hoc. Haapens after does not mean caused by. Chaos was not the cause. Aristocratic patronage of art as ego trip played a part. Wgat abiut Englabt

@tom4od

6 ай бұрын

Great video! It would have also been good to mention rankings on quality of life / happiness scale compared to other countries. Because like you alluded on it’s not all about GDP. What do you predict for the future of Italy?

Having had a fair amount of experience of "Italian Management" I can confidetly say that the term is an oxymoron. If you want to know why their economy is not doing so well look no further than the bosses.

@marcoac-sx6lq

7 ай бұрын

It depends

@vmoses1979

7 ай бұрын

Exactly. Deriding their bosses but entrusting your life to them by driving a Ferrari. Italy's problems are entrenched interests impervious to change and low fertility.

@marcor5886

7 ай бұрын

​@@vmoses1979I hope you mean that businesses owners entrust bad managers and drive a Ferrary. But if they had good managers, would they afford a Ferrari? Another thing worth mentioning, explained by the economist Boldrin, is the fiscal regime: italian business owner prefer to account their vices into their business so they prefer the "Ltd company" societal status rather than a public company in the stock market.

The same apply to the Uk . High debt , no money for investments, no growth , declining productivity etc.

Is it a bit like the cronyism in the UK when everyone in top jobs seems to have gone to the same school or similar?

In theUK Maggie banned the use of "made in England" in Italy everything has "made in Italy " on everything and people buy Italian stuff if they can, made in Italy 3 times on a packet of pasta, I live in Italy its the best country in the world in my view, everywhere you look its beautiful, people seem happy, not enough kids is a problem , people with 8 or 9 brothers and sisters have one kid or none, Italy will survive

Hi, thanks for paying attention to Italy. Good to discuss these issues. Many of the points you mentioned are valid but you miss an important point in explaining the dismal performance of Italy in the last 20 years, especially when compared to countries like France and Spain. Italy 20 years ago already had a high debt/GDP ratio and when the global financial crisis came did not have much "borrowing capacity" to support its economy as other countries could (France, Spain, UK, US). Now that most developed countries have high debt/GDP, it will be interesting to see how the next 20 years develop, as these countries will face many of the same issues and constraints

The problem in Italy is the culture…. Is stuck in the 90, we don’t see beyond , the management in the company are poor viewed and there is not meritocracy.

This is what happens when boomers give the middle finger to young generations.

A lot of these reasons for poor growth you can apply to the UK such as a least a decade of austerity, low productivity and low levels of investment.

@ab-ym3bf

7 ай бұрын

And bad management, bad politics, corruption, cronyism.

@Trecesolotienesdos

4 ай бұрын

Uk growth has been of a higher level than other big economies in that period

The problem with adopting a single currency such as the euro was not only that it reduced the flexibility of Italian fiscal policies - which could also be a good thing - but that it gave the direct competitors of Italian industry (primarily the Germans and the French, just think of: steel, automotive, electrical appliances) an immense advantage: a weaker currency to be more competitive. In essence, the euro has wiped out Italy's competitive advantage. In order to remain competitive in global markets, Italian companies, already small to medium-sized, have cut innovation spending and wages. The most talented young people have rightly fled abroad. Those who stayed gave up having a family or having children. All this has of course meant a drop in productivity, efficiency and consumption and thus a drop in GDP. Not to mention the 'linear' austerity measures that have massacred public services without any lowering of the GDP/debt ratio: after all, it is not hard to understand: public investment may well increase debt, but if it produces wealth and increases GDP, the total ratio goes down. Many of these measures were stupidly (or deliberately?) imposed on Italy by the European Commission. That said, the main blame obviously lies with the Italians. Just think of the problem of tax evasion: 100 billion a year that could be re-invested by the state in public services or industrial policies.

I wonder how the UK's cronyism is any different: a.k.a-contracts to buddies, donors & school mates? It has had the same effect on economy as Italy's: viz low growth, low wages, low productivity, low investment, austerity and high inequality!

Can you write these up as blog posts as well please?

Currently the worst gdp performance is the UK’s

The Euro therefore is not a root cause. A reliance on devaluation is a sign of mismanagement. The Euro meant it had no short term fix. Like aspirin cures a hangover but is not the answer to alcoholism.

Just a correction, Spain did comply with the Maastrich debt with only a 40% debt/gdp ratio in 2007, and consistently below 60% since the 2000s till the 2008 crisis.

Heck looks like Italy doing better than Canada

I would add also the fact that none of the many governments we had and currently have acted against tax evasion. At today, our prime minister considered paying taxes for public serves as the same paying Mafia...

Excellent analysis. Thanks

One thing Italy tops the UK is with their large industrial base. They produce everything and have a very strong primary sector. The UK put all their eggs in the service basket (read London) with Thatcher. And they severed the links with the continent with Brexit. Services are notoriously difficult to export and if on top of that you erect barriers there is very little room for growth. AI and Sunak’s grandiose ideas won’t change anything. The UK is in terminal decline. No different to Italy actually but at least there, given their large supply side, inflation will be subdued. That won’t be the case with the UK. It will feel (it feels already) like the worst part of the 70s because that’s where we went back

@Trecesolotienesdos

4 ай бұрын

The sector of industry is immaterial

I forecast the same sort of young person brain drain from Brexit Britain due to a) reduced economic options, b) stupid house prices and an overall rentier economy.

@rebeccanoble6797

7 ай бұрын

Rofl! I predict the EU sux.

@treyquattro

7 ай бұрын

@@rebeccanoble6797 obviously one of the left behind with fewer economic prospects...

@andrewtaylor6737

7 ай бұрын

I predict Brexit was one of the best things we ever did but then again, I'm sure Germany will continue to support the rest of the financial booming block lol

@treyquattro

7 ай бұрын

@@andrewtaylor6737 yes, the evidence is overwhelming. BTW, you can't predict something in the past, but that's par for the course for someone who thinks that an act of massive self-harm is one of "the best things" Britain ever did, right up there with the steam engine and television. Good luck with your GCSEs.

@andrewtaylor6737

7 ай бұрын

@@treyquattro You don't have to worry, no doubt you don't live in the UK & why would you ? One bonus, the housing market will crash given your optimistic outlook to the UK's future. In fact, it will become an economic wasteland according to the Remoaner's LMFA

All the industrial nations are facing the same problems in the post-industrial era; ageing society, low fertility rate, mounting government debt, youth unemployment, homelessness, and migrant influx. The renewal of thoughts for the future is definitely needed in all over the world. Regenerative agriculture, skill training more than academic theories, physical labour than computerised jobs. AI can be used to do risky and heavy duties, but the basic thinking must be done by humans. Computerisation is the technical aid and tool. Or, we have come to the age where we need to explore how to pass time with the AI replacement. Italy is not alone in this daunting game.

The answer is simple: bad, but really bad politics and politicians

@micheladerry5681

6 ай бұрын

ure right. Our leaders have always be mean

@Mastercane98

3 ай бұрын

People vote for them, they keep the pensioner happy so they get elected.

Do an update on Argentina now that milea, chopped the government payroll in half

@stevenhenry5267

6 ай бұрын

Guy is a hack.

È divertente come tutto il mondo parli sempre del mio paese in modo negativo (a parte il cibo). Ma siamo ancora qui da secoli (forse un po' matti) ma ritorneremo più forti di prima.

@danchanner7887

7 ай бұрын

Forza Italia!

@marcor5886

7 ай бұрын

Pure il Marocco è lì da secoli

@micheladerry5681

6 ай бұрын

@@marcor5886 e l'Egitto? Guardalo ora

@micheladerry5681

6 ай бұрын

vedo che sei molto ottimista, ma con questi al governo vedo un futuro più che nero pece. Non ci risolleveremo più dai guai che creò il caro Berlusca, che ci piaccia o meno, ed oggi ne stiamo ancora pagando le conseguenze. Non che quelli che sono venuti dopo hanno fatto meglio, anzi. Forse hanno magnato di più e basta

@cal7348

6 ай бұрын

@@micheladerry5681 è la sinistra (anti italiana) che ha distrutto questo paese.

Euro wasn't absolutely a problem, and i really don't know why people keeps mentioning this as a problem against all the evidence and data available, and the same applies to austerity, we have ALWAYS spent lavishly even when the EU tried (and failed) to put a stop to that.

cool video, I thought it would be the usual shameless copy paste underestiamtion of the italian economy but it tackles mainly the gdp per capita and there isn't much to argue there. I am no economist but I think some of your points are spot on and are a direct cause of the other points; The main two problems in Italy are the small business which makes very hard to innovate for the country, that and the aging population make this a whole mess, it was fine until Italy joined the euro and China got in the world trade, those two blows made the small business unsuitable for economic growth, as an example it's almost a good thing for Italy to have fewer higher educated people because after graduating they would likely just leave since the market here makes a lot of the higher education not worth it financially

cronyism is a syndrome of a decaying economy, not a direct cause

I m an Italian guy, I confirm that euro and politics destroy our middle class.

👉Russia's GDP per capita has grown by more than 560% since 2000

@stevenhenry5267

6 ай бұрын

Lol. Russia is a gas station masquerading as a county. They'll never be the same after they invaded Ukraine.

The uk isn't any less when it comes to cronyism and nepotism

Italy had extensive ww2 damage. It can be said that as the effects of this nullified it caught up with them

Decline in population stagnates productivity but so does their front line position where masses of unskilled migrants enter the country and weigh heavily on the state social support system

@FrostenFrusten

7 ай бұрын

Unskilled migrants do what on the state walfare? That's just plain racism, it has nothing to do with the money. There isn't a single piece of data that supports your theory, in fact, migrants give to the State more than they receive, and they are vital to keep the pension system from collapsing.

@user-dw9mw3ft3v

Ай бұрын

Quelli che lavorano si

I went to Italy & Greece a few months ago. You can tell Italians are suffering from what felt like a recession with high unemployment while the Greeks were thriving with lots of work. Just the way the smaller shops acted.. in Italy they felt a bit more desperate for my business (bundling things, cash discounts, freebies, etc). I also saw a some dumpster diving? Didn’t see that in Paris, London, or Athens

@strikedn

Ай бұрын

Where did you go to Italy? Northern Italy has very low unemployment rates and lack of workers.

GDP is highly misleading. Always look at purchasing power parity! When measured in PPP, Italian economy has grown steadily. Americans love to use GDP and dollar as a measurement to make themselves look more attractive vis-a-vis their competitors. As for Italy, it has great latent potential which should be untapped with Next Generation EU funds. Something to look at during the 2020s for sure.

Thanks for the video but the first chart is completely wrong. Italy GDP (PPP) per capita in 2023 is USD55K, higher than Japan and almost the same of Uk (56k). How is possible that has decline 2% since 2000 and others countries grew 70/80%. You have wrong figures

What did bercusconi do? Was just a showman!!!

Italys economy is very largely depends on its luxury goods exports , most buyers of such items were Russians so hence Europe closed air travel from and to Russia no more buyers )) same with UK property crisis , because main buyers were Russians now market is collapsing without new injections ) 😅

@pietro5856

6 ай бұрын

Absolutely not , Russia was a small buyer.

@ilmatanela1816

6 ай бұрын

Italy 's export is probably the only healthy aspect of our economy. Keeps growing, reaching record levels in 2022 and 2023

@user-dw9mw3ft3v

Ай бұрын

Non solo quello, grazie anche al turismo e al risparmio privato, ho sentito che supera di gran lunga il debito pubblico, mentre in altri paesi sviluppati con basso debito pubblico hanno un elevato debito privato, Non riuscirò mai a capire perché siamo un paese al fallimento

Italy's reputation for overpriced luxury and shoddy cars doesn't bode well in this economy

@thepatriot4076

7 ай бұрын

I agree, the Italians need to change their game plan because the luxury items and Ferrari are not going to cut it

@giangargo669

6 ай бұрын

italy has large exports in cutting age military stuff and heavy machinery, ferrari are like a marketing face rather than something very impactful to the economy..

@francisdrake7060

2 ай бұрын

You all know so little about italian industry, experts, goods, you never read any data and still you judge like you know everything

Cronysm, political inertia.... sounds familiar, UK friends?

But now we, the Italian, are happy that uk is longer in the eu: see you on the market guys.

It's the euro, baby!

a lot of truth combined with a lot of bullshit..

There is no future for the youth in Italy, none at all.

Italy's women have the lowest labour participation rate but also the lowest fertility. What are Italy's women doing exactly?

@BittersweetMayhem

7 ай бұрын

Taking care of the elderly?

@micheladerry5681

6 ай бұрын

nothing.

@Mastercane98

3 ай бұрын

Some work in the informal market, that's why you don't see it reflected in the statistics. The wages they get by doing those odd jobs are extremely low, comparable to those in emerging markets or even lower sometimes.

@user-dw9mw3ft3v

Ай бұрын

Lavoriamo anche troppo, oltre al lavoro ci aspettano a casa figli , nipotini e anziani. La famiglia per noi è primaria, penso che diamo tra le donne che lavorano più al mondo. Si chiama welfare familiare😅

@user-dw9mw3ft3v

Ай бұрын

Sicuramente non ci ubriachiamo😂

Brexit

That's not true. It's just nonsens. Italy has the eighth largest nominal GDP in the world,the second largest manufacturing industry in Europe,and a significant role in regional and global economic, military, cultural and diplomatic affairs.Italy is a founding and leading member of the EU and in numerous international institutions,including the NATO,the G7 and the union for The mediteranean.As a cultural superpower,Italy has always been a renown centre of art,music, literature, cuisine,fashion,science and technology and the source of multiple intentions and discoveries. At the post second world war era between 1949 and 1960s Italy enjoyed à period called Economic Miracle eventhough the country recieved much less economic aid from Marshall Plan than other allied (sorry i mean the satelite countries of the USA) like france and uk(both recieved more than double so much as Italy did). In The 1950s Italy became a founding country of the European communities a forruner of the EU (at the famous treaty of Rome).Italy became the fifth largest industrial nation after it gained entry into the G7.Italy is one of the most industrialised nations and a leading country in international trade (the world's sixth largest exporter of goods).It performs very well in lite expectancy, healthcare and education amongst others The country is well known for its creative and inovative businesses and for its influential and high-quality automobile,machinary, chemistry, elictrical and electronic,high-tech, food,design and fashion industries . Italy has in fact a high public debt(the second highest in EU),however the largest portion of it is owned by national subjects,a major diference between Italy and Greece or France(third highest) for instance and the level of the household debt is much lower than the OECD average

What you say... hmmmm, I don't know. Here is something for you to now consider. UNITED KINGDOM., London. Apr. 3rd, The Telegraph: "Meloni's Italy Is Doing What Britain Could Only Dream Of." They said, "Dream Of." GERMANY., Bonn. Apr. 3rd, DW (Deutsche Welle). "Italy Is Overtaking Germany As Europe's Economic Powerhouse." They said, "Overtaking Germany." What's even more interesting, is that both these articles on the same day, were right out of Major News publications in these countries "themselves." Do you think they are just reporting nonsense? Maybe just being funny? They have no 'real' reasons to state such 'surprising' headlines, and to their own publics? They sure seem at Total odds with what you said.

I blame Brexit

Weak economy plus extreme right government is a proven formula for further decline. 😂 Italy will still survive, no worries.

So so many lire for just one euro!

Many countries declined sonce they joined the EU! Are they traped?

@economicshelp

7 ай бұрын

Italy did well in the EEC, but struggled in the Euro. It's hard to leave the Euro though.

@christophevervecken1370

7 ай бұрын

@@economicshelp Question is ,do we need the Euro?

@smejkal1846

7 ай бұрын

they fail because they can't compete on such a big market@@christophevervecken1370

@oldskoolmusicnostalgia

7 ай бұрын

​@@christophevervecken1370Italy's exports and tourism would do better without. That absolutely does not mean the economy would boom overnight. In my view the euro made certain segments of the Italian economy less competitive but then it gets wrongly blamed for all kinds of other unrelated issues.

@marcoac-sx6lq

7 ай бұрын

​@pritapp788 I have the same opinion. Euro was undoubtedly bad for Italy, and althouth is a major factor, it's not the only cause of the current decline

So they promote like the Tories?

€

What an economy doesn’t perform despite being in the eu…

@treyquattro

7 ай бұрын

@@Just_another_Euro_dude not a very useful stat in this instance when people are leaving Italy and Japan has twice the population density of UK, with an aging demographic. Also, the difference in GDP-per-capita is negligible.

@rebeccanoble6797

7 ай бұрын

_dude What's the capital of Italy? Oh, about €14.

@rebeccanoble6797

7 ай бұрын

_dude So why are they so piss poor?

@rebeccanoble6797

7 ай бұрын

_dude Hey. How much gold do you think is in Fort Knox?

@rebeccanoble6797

7 ай бұрын

@@Just_another_Euro_dude It's not doing them any good. Chump.

EU membership will get you in the end

The 10 reasons how the americans have become completely broke in 10 years.

@thepatriot4076

7 ай бұрын

I’m American and not broke, the only ones in the USA who is broke are lazy people

But but but, the EU is booming with their off the scale salaries - benefits the UK can only dream of & zero unemployment! Im sure Germany will continue to support the rest of the block ( sorry, hold them to ransome ) All part of the plan!! Such a level playing field, what a wonderful project !!! 😆🤣🤣

@BigHenFor

7 ай бұрын

But but UK debt is nearly 100% of GDP and Germany is only 61% of its GDP. Who's laughing NOW? LOL. And wages are better than the UK too.

@andrewtaylor6737

7 ай бұрын

@@BigHenFor German salaries pcm compared to the UK - €200 more, wow! 🤣🤣 The former Herman the German Merkel, would be proud!! 😅😅

@nothereandthereanywhere

7 ай бұрын

@@andrewtaylor6737 Couple of things about this one... Most Germans are much closer to the average wages than those in UK. In UK, you have very poor and extremely rich that raise the average wage a lot for others. Germany - not so much. Also, disposable income is much better in Germany. Germans may have higher taxes, but they do also have much better public spending, direct involvement of the state in public life, allowing families to save money(such as GREATLY subsidised child care). Also, they have much better infrastructure and politicians that are more pro people. On average, they have better social inclusivity, supporting each other.

@garyb455

7 ай бұрын

@@BigHenFor that will be why Germany has been in recession for the last year, and why big companies are leaving as fast as possible

@stevenhenry5267

6 ай бұрын

🤡 post

I live in Italy, the country is doing fine, exports up inflation down and employment increasing, so in summary you're talking bollocks.

@spankeyfish

7 ай бұрын

The supercar industry seems to have turned it into the centre of the world for mass-produced carbon fibre car bodies. CPC is even getting work from the USA.

@SASocolovsky

7 ай бұрын

No, he doesn't. I lived in Italy for 25 years, and had to leave, there was no future, opportunities, just trying to survive.

@thedon8772

7 ай бұрын

@@SASocolovsky you're out of date mate and probably lived in a deprived area of the country, and please don't tell me that you came to the UK because it's turned into a basket case.

@SASocolovsky

7 ай бұрын

@@thedon8772 lol, I lived 25 years in the north east, near Venice, so don't lecture me about living in Italy please. The video is right, it was fine till the 90s, mid 2000s then it went down and never recovered. But if you're happy there, suit yourself.

@thedon8772

7 ай бұрын

@@SASocolovsky my goodness I'm Italian so don't lecture me about Italy today, you left Italy good luck to you and don't come back.