We spend a lot on pensions because there was a period of time in the 80s and early 90s when state employees (teachers, government officials, bureaucracy staff, railway and police higher-ups) could retire very early. There's quite a number of people in their 60s and 70s who have been retired for 30-40 years after working for half of that. And they criticize young people because "Youngsters today don't want to work".
Also, Italy has one of the oldest populations in the world. About 16 million people are retirement age and over. Also, yes young people (i am one) should be criticized they are a bunch of morons, for the most part.
Also you have to consider that we generally have some really high pensions (except for some cases where some old people don't get enough to live and that's caused by a really bad distribution) and we still go in pension quite early (only the so much hated law Fornero did something good, but then most of the politicians (who recieve votes from the oldest parts of the population because they are way more than us youngsters) decided that Quota 100 was good and spending even more on pensions was good.
It's not the number of pensioners, it's the unsustainable system created worsen by some of those factors. On the flip side the high youth unemployment can also be resolved by reducing retirement ages. But it's not as straight forward as that. The system needs to be sustainable first...
apart from cultural reasons, the reason why young italians dont move out soon is related to what youve said in the video: finding a decent job is hard and buying an house requires money that a regular italian 20 yo doesnt have - a 19yo italian that would love to move out but is very far from being able to
@@itsme7279 but it suggests that other Europeans aren't close with their family. Which is stupid ,I would see my relatives every holiday, my uncles,great sunts,grandparents,cousins. Today I frequently Skype my parents, okay I need to visit my grandma soon,but she is mostly surrounded by family (daughters). It's stupid, it dehumanised other populations " oh marvellous Italians have such great family values" So does everyone else ! It's a human thing. I'm not mad at Italians just the way this stereotype is used to say things implicitly about other people. I don't know why it bothered me.
Wise words Sara, finding a decent job is not at all easy in Italy and would take many governmental policy reforms to put the economy in better shape. - a 20yo Australian that would love to become a permanent Italian resident if it weren't so impractical
@@alessiostaccioli9151 The system in Italy is really tilted to favor older workers at the expense of the young. It is tragic IMHO. Throw in the raccomendazione system and you have a recipe for stagnation. Nevertheless, there are also a boatload of mammoni. As I once read, "If you hear an Italian woman say 'Amore', you can bet that she's speaking to her son and not her husband." ;)
Being Italian, I can confirm that every point discussed in this video is objectively explained and, considering the limited format in time of the video, has given a very good portrait of the overall situation, in my opinion.
He missed an incredible number of hugely relevant topics. Both of you have clearly a juvenile point of view on the matter. Refer to my separate comment for proper motivations.
I would like to hear some thoughts about his, but I genuenly belive that one main thing which Italy needs is confidence. I know, it might sound insignificantly, but I caught the impression that Italians have gotten such a bad image that they don't even belive themselves in fixing their country's problems.
As a young adult in italy the problem is the older generation they don't see the younger generation as capable because for exaple i belive in labour law while older folk denounce it, then the jobs pay too little for youger folk a friend of mine was offered a job as a waiter they gave him 600€ and 200€ on the side. But the other massive problem older folk don't want to pay taxes. Why ? There are too many! I helped my father in our small business and counted how much we gained for product sold it was 50% like from 10€ we got 5€ without taxes with them we made about 12/15%. That is why we moved the family business away
And one massive problem imagine if every italian politician was a Donald Trump is just a joke italian politics and burocracy (but thank god the last one is getting updated)
The problem is the government, the politics in Italy are extremely ineffective due to divisions and just endless red tape. The whole government system is broken, it can’t operate properly and get stuff done, in essence everyone is working with their hands tied behind their backs, they are all working against each other instead of for the country. As is mentioned in the video, literally a new leader every year which speaks volumes regarding the state of the government system in Italy. As an Italian, it’s a crying shame because it’s a beautiful country, with still lots to offer that is slowly ruining itself from within.
@@dia6olo64 At the national level, this is very much true. Though it should be of note what local municipalities have been able to accomplish in spite of covid, high debt, and bureaucracy; even Naples has been on a metro-building spree that has surprisingly been on time and not scandalized by anything ( 🤞 ). I’m not necessarily pro EU, but if it is to remain implemented, economic integration (as aforementioned), would ultimately be best for the union at large; despite it being at the cost of members like Germany, Ireland, or the Netherlands.
@@lclhago2098 Man labour laws are exaggerate in Italy. The video btw lists it as one of the causes of Italian unemployment, and virtually all economists, Italians and not, agree that labour laws must be relaxed. Wages will increase naturally as the economy improves. However, to artificially increase them, will only results in unemployemnt as there ar e or enough resources to pay everybody a high wage, which itself will only reduce economic growth and in the future further decrease wages.
I hope Italians know how beloved their nation is outside their borders. In North America especially Italy is considered one of the most beautiful countries in the world. So much culture and history and not an endless sea of strip malls and parking lots.
@@kronosmambrini9227 mafia is not a gun, it's a quite organization, you don't see it you don't hear it, but it's already behind you! My granpha always said that to me... but today mafia is worldwide
How is it British - it comes from Goldman sachs🖕🏻nothing to do with Britain. There's even a version which includes GB,as Britain does not have a perfect economy either.
As an italian i want to thanks u for this very accurate job. Not even an italian would be so precise in every aspects. Well done mate keep doing like this
I must be honest with you, this is one of the BEST videos about italian economy I have ever seen! Finally someone that doesn't fall for the same, old, stupid stereotypes and tries to see things objectively! Well done! I can see you made good research. To add something, Italy is one of the countries with the highest private saving rates in the world. Italian private saving is 2 times bigger than the public debt! But this leads to another problem with the italian economy. Italians tend to save A LOT. They don't spend that much, prefer saving for the future, so privately italians are wealthy but the state is poor.
@@johnmacasinag3996 No, because I don't know how frugal germans are. I didn't make any comparison, I was simply saying how much the italian private saving rate is, i.e. around 2 times italian public debt.
@@johnmacasinag3996 If you consider the rate of private debt, Italy, Germany and I believe also Spain are the Western European countries with the lowest private debt. While the countries defined as "frugal" such as the Netherlands, have private debt among the highest in the world, about 290% / GDP. Frugal countries are not very frugal
As an Italian i feell the day that we will have a reliable and transparent public service I think trust among Italian consumers will finally rise and an economic boom created by internal demand will occur. But until Italian institutions and bureaucracy remain prone to inefficiency and corruption it will be hard to assist to a full economic recovery. we cant relyonly on exports forever
Quello che dice non è del tutto accurato, noi da 20 anni abbiamo un surplus primario, ovvero le nostre entrare sono maggiori delle nostre spese. Perdiamo il surplus nel pagamento degli interessi sullo stock di debito. Dal 2000 mola abbiamo sottratto dall’economia più di 700 mld di euro. Ci hanno preso per le palle comprandoci il debito e l’unico modo per accedere ai fondi è una garanzia che non può venire dal nostro Stato, ma da quello tedesco.
@@jacopofacheris7215 ?! Il debito non lo dobbiamo alla Germania… ma ha noi stessi. Ecco perché si chiama debito publico, banca d’Italia ritiene la fetta di debito più grande.
@@CarloRossi54523 il debito se detenuto dai cittadini tipo Giappone è sicuramente meglio che detenuto dall’estero. Poiché gli interessi generati dallo stock di debito non rientro con il consumo nell’economia, ma essendo afflussi di capitali, questi usciranno dalla nostra economia.
I fully agree with the point that one of the main issues about Italy is that italians don't really trust the government - because of many regrettable decisions politicians made in the last decades -, that makes many business don't feel any kind of guilt by evading taxes, because "even by doing so, things wouldn't change for the better". Sadly, it's a common thought
The job market in Italy truly benefits no one. Wages can sometimes be so low that it is more lucrative for people to just not work and live on older family members’ pentions. There is no minimum wage, taxes are high, unemployment money is often given unfairly. On the other hand as you said, employees have to be extremely careful about who they hire, since it’s very hard to fire people. This vicious cycle creates a sense of hopelessness and stagnation that I have yet to experience in any other developed country.
@@gabrielesolletico6542 You are exactly one of the problems that Italy struggles with. Italy is rapidly aging. There are few working people in relation to pensioners. And what you ask a foreigner who may be paying your father's pension, 'what are you doing here?'..I hope you don't mean it like that.
Very well done! I am in italian and hold a degree in economics and I must say this was pretty spot on. There are only a few comments that I would like to add: - The fact that people move out relatively late is not just due to cultural reasons. Cities and industrial areas where it's generally easier to find a job are relatively pricy on a real estate standpoint while the salaries are low. For example, a very lucky young graduate (I'm talking master's degree etc), will make approximately 1400 eur per month as salary, while the rent for an apartment in Milan is at least 800 eur (living on your own far from the center). If you compare the figures for an average German graduate in Berlin, which makes more than 2000 eur and has cheaper rent as far as I understand, I'm sure the message is clear. Obviously, this is not the same throughout the whole country but I'm willing to bet that we have one the highest rent/salary ratios in the world. I would argue that one of the reasons is that, because of the many regulations, it's very difficult (and costly) to build a house from scratch and therefore offer in the real estate market is not very flexible. That is because there are so many cultural preservation and environmental regulations that you can't even imagine. Plus it takes ages to get permits depending on where you are. For example, I was recently trying to install a roof window in an old farmhouse/apartment in the middle of nowhere. I had to ask for an authorization that was eventually rejected (after 6 months) because the building is in an area of "historical importance". I can assure you, it's a piece of crap farmhouse in the middle of the f***** nowhere. And that's for a roof window. Imagine building a whole house. - Another reason why our economy is so ineffective is the extremely slow and ineffective rule of law. Businesses don't want to wait 5 years to see their disputes settled. Sometimes they won't even invest in the country because of it. It is a real issue especially in times of crises. E.G. : company A does not pay company B. Company B cannot wait 5 years for the ruling to get it, it will therefore either sell its credit to a bank for a big discount or go bankrupt because it need the money right now. - You are right, entrepreneurship is not very much encouraged in the country. Culturally we tend to prefer safer jobs. A testament to this is the fact that our startup ecosystem it's basically non existant compared to other european countries. You could argue that we don't have entrepreneurs/startups because we don't have an ecosystem, it probably goes both ways. However, our culture does not really encourage risk taking and I bet any italian I know would say that his or her family would tell him that he was mad if he expressed the wish of starting a company from scratch instead of getting hired somewhere. - We have a serious skill mismatch problems. 10% of the population is unemployed, nevertheless companies cannot find the profiles that they want to hire. That's because unemployed people are generally low skilled while companies require things like engineers and data scientists. Data scientists and engineers tend to leave the country and go live somewhere where they can earn significantly higher salaries like Germany or Switzerland. I could probably go on for an hour or so, hopefully whatever I wrote was interesting to someone, Cheers
If i may add extra info FYI: - Even if regulation weren't a problem you would still not be able to build a house since you most likely need a mortgage, you can't get a mortgage without an indetermined contract. It's almost impossible to get that kind of contract before 35 yo. - To worsen the skill gap there is also the fact that they pay is generally shit compared to other EU countries, for any job including high skill jobs. I have a friend that has a master degree on automation technology and after 3 year working in the same place his base salary is 1300€ (net), same story for other engineers i know. If you don't mind leaving the country that's what you do since you probably end up with at least the double + benefits. - One highly overlooked thing is that in 1993 they removed the "scala mobile" on salaries. Basically it was the inflation adjustment on the base salary of employees. Since then the base salary depends on "national contracts" that are different depending on which category you work. These contracts are reworked to increase the base salary sometimes. Needless to say that none of them kept up with inflation. CPI 1993-2001 is up from 60 to 104, that's 70+% increase. My mother worked the same job in the same place for all her life, retired last year, she didn't get 70% increase even including the increase you get because of seniority (the amount of years you worked)
I do not think that joining the euro was a bad idea, it’s the opposite. In 20 years Italy saved 700 billion euros in terms of less interest on the debt, the problem was and will ever be its political class; joining a currency union requires strong reforms and a change from a public spending and inflationary mode to a more open and stable system, a change that Italy didn’t take because it’s not politically feasible. The biggest economic problem of Italy, in my opinion, is not in its economy but in its political class, a class that, after the government of Super Mario Draghi, will strike again in its poor competence and blind view of the future.
I totally agree with you on the Euro but I don't think we can blame our political class of everything, since we are luckily not a dictatorship we are able to choose our own parliament and I think it reflects perfectly the population. The real problem at the base of everything is the extremely old and overall ignorant population. Plus there are extremely low investment on school and research due to the lack of future prospects, all of that combined makes our country basically a dog biting his own tail until it's dead over a pile of debt.
@@emanuelebertelli6450 Tu che invece ne capisci ci sapresti illuminare su come l'Europa ci abbia rovinato e magari anche dare qualche idea per risolvere la situazione
In my experience the greatest issue in Italy is taxes and bureaucracy. I once wanted to open a business with my uni friends. The state expect you to pay a ridiculously high amount of taxes BEFORE you even generate any profit. Not to mention its impossible to hire due to the overcomplicated requirements. Despite its young population tending to be very creative, banks and financial institutions are overly conservative and don't really understand much about innovation and as a result, startups often have to migrate abroad. It does not help that politics is either ruled by ex communists converted to bankers on the left and racist criminals on the right.
Call me dumb or whatever lmao i mean aren't Italian the most artistic ppl ?? Like u invented fashion arts Roman emperor... The beautiful ancient statues and buildings etc.... 😒😒😒😒😶😶😶😵🤧 sigh
The fact that Italians leave the family around 25-30 years is related to the cost of life. Here in Italy when you get your graduation for the first 2/3 years you can change many jobs that the most of the time give you from 600 to 900€ per month and if you consider that a rent costs 600€ or more, if you live in cities like Milano, Roma, etc. a young man/women can't afford to live their lives so is better to live with your parents and divide all the expenses for these two or three years and when you find a better job or you get a promotion than most of the Italians move out. I'm one of these Italian and it's not related to the union we have with our families it's only a matter of how are we going to live with only 600€ per month. I find the rest of the video very interesting and mostly very specific and I can see or better hear that you have studied what Italy is capable and what really makes this country the third economic country in Europe. Thank you for not saying that we are just pizza, mandolino and Mafia. Italy has a lot to offer and I think most of the people just by searching on the internet can see what we really can do and what we made, but as you say we lost most of our hope in the politicians and institutions for the most diverse reasons, but I can see in my generation (20-25 years old) that we want to change in a better way our prospective and change this country in better in every aspect
I'd say it's both. Culturally there is very little effort from the parents, generally, to make their children leave the house once they're out of school. This is reflected in many other aspects of life such as marriage and having children (which, of course, is also worsened by the economic crisis like you said). There are many countries where the cost of living is much higher and yet the families fully try their best to make the children independent as soon as possible. This doesn't happen in Italy, especially in the south, unless they're forced for education reasons, but even that is just limited during university (while in other countries this can happen even before).
As an African descent living in Italy for many years now your comment has explained many questions I’ve had on my mind for long time. As an African who couldn’t acquire higher education for reasons I can’t talk about now, I think we’re feeling more the economic instability currently happening in Italy. I hope things get better
I agree in general with your statements. I would just include the packaging industry among Italy's top economic sector. I would also add that private debt is still low compared to other European countries and that large majority of Italian families own their house.
As an argentine myself I have to agree. But I have been looking for places to move, having an italian passport I obviously looked into Italy and I am not sure I like what I see. It can change ofc, and I may also be looking at things from a paranoid frame of mind.
@@grindelz well it is a mix of things. I am a medical doctor in arg, our salary is not the worst (I can live and eat every month) but we usually have more than 1 job, and at least one of those is undeclared employment and even then it is impossible to save. The usual in arg but you really have to understand that if we were to pay every tax we really couldn't pay for essential stuff. I think everyone understands that evading taxes and the like is not the solution, and it puts more pressure on the unlucky ones that don't have the option of not paying 100% and also think that the majority of people who evade would gladly pay if taxes where to adhere to reality. So if you have so many people in the dark it is a symptom, not the cause. Bc at the end of the day it is easier and safer to do bussiness if you are clean. I get mad writting about it haha but here somtimes they decide you have retroactive tax increases, stupid laws that are implemented and changed as fast as they can think of them, all the limitations on the usd, etc. And ofc you are going to have half or more of the econmy working like a black market if your gov does things like that, but people let them. You can even find some who agree that the solution is more more more of the same old thing, and ofc they vote like that. BUT I can evade things like that here in my country, if I go to Italy it would only be the right thing to do to follow the law. I would be more like a guest in your country, and I would be of that percentage of people who pays every month and every year. And I know that looking too far in the future is of no real use, but I fear that 15 or 20 years from now your taxes will make even less sense that they do now and I will be paying them in a new kind of argentine hell hahahah To be 100% hones, I think my real fear is just populism and economically illiterate societies. edit: and I say economically illiterate, but if you are you are not going to stay that way for long hahaha you are going to learn things the hard way, while bringing everyone around you for the ride.
There's also a big problem of the very rich northern Italy and the poor southern Italy, particularly south of Rome. Italians (in my opinion!) should aggressively foster their agricultural industry in the south, which would really improve things there.
The main problem in Southern Italy (after the extreme corruption and the fact that it is quite far away from the economic core of Europe) is the awful education system
@@unknownzzz5115 True. Respect of the rules should be enforced at gunpoint in the South. Also, the "strongholds" of the various mafias should be attacked by the army and razed to the ground (we know exactly where they are and who they are) brick by brick.
Italy is the best country in the world. Even if it makes life a bit hard on its citizens, it is a small price to pay for living there! Lots of love from your brothers and sisters in Greece
If you come to places like Turin for example, there has been a great many changes since then. During that time we held the winter olympics and modernized the city, added an underground line, many modern buildings. If you go to Milan, it feels like a super modern almost futuristic city thanks to all the newest skyscrapers and plazas they built. Other parts have modernized and changed but I wouldn't say it has gotten worse since then.
In 1998 a series of reforms were passed that enabled a lot of flexibility in hiring and firing; more reforms with the same aim were introduced in 2002/03. Considering these reforms affected large sections of the population, especially those who are in their forties, thirties and twenties the assumption that unemployment is due to the lack flexibility in the labour legislation sounds a bit bizarre.
@@diego89132 no davvero Stava li a fare un casino e mia madre che diceva: "ma mettili a un euro l'uno circa, dai" perché sennò nascevano i pulcini prima che li vendessero
What Italy needs is to return to its Machiavellian politics. Think about all the damage that been done by the USA and its corporations to Olivetti, ENI and the scheming with the nuclear power plant and rearmament programme in the 1980s that so heavily indebted our nation. We are better of allying with out best frenemies; France and Germany. I truly believe this tripartite alliance would be an unstoppable economic engine, but it can only work if we leave our big ego's home.
Germany is a great ally but France is a no from me They hate our possibility of dominating the Mediterranean sea once again France want a weak Italy because ot helps them having a tight grip on the Mediterranean sea thus reaping a ton of Influence in North Africa and its Neighbours (Spain and Italy)
@@thelastpagan4999 true but I don’t feel the same towards Germany they need to still win my trust and the same goes for northerners exploiting others or using taxation to steal businesses in the eu that is just hypocrisy, I suggest you again nova lectio
The best solution would be that Germany returns to catholicism and France also and clean the catholic church ,than it will be a natural aliance between christian countries . The german reform was a hit for christianity and divided Europe between catholics and protestants , it created the conditions for the appearance of atheism and with that of comunism and naziism .
Compliments for the precision and the completeness of the information, which accurately reflect county’s problems and potentials. Just a big problem is here missing: the bureaucracy is very slow and sizable and this cause incapacity to spend efficiently the available money in infrastructures or other useful projects, that remain unfinished
AWESOME VIDEO ABOUT ITALY!!!! this is for all the Hater's 🇮🇹, my friend, but you forgot including '' the Italian private debt is the lowest in occident '' and Italy have the 2° biggest Gold reserve in the World
awesome video bro, you did forget the massive Defence industry (Fincantieri for example building FREMM Frigates for USA, Egypt, Indonesia, etc) billions into the economy. cheers from Australia.
Italian here. Benjamin Franklin once said: only two things are certain, death and taxes. Now, I grew up with another quote: only one thing is certain, death
Italy was made just by people farming still in the 60, also without the Marshall plan and just staying in the west world would make Italy grow. While being the economical policies centered around Germany in EU destroyed Italy. Italy continually suffered the bad reputation given from the other European countries that had also an interest to do that, so much that even Italians started to believe that.
One of the main problems of our country is the mentality of the people and the structure of businesses. 90% of italian businesses are small enterprises that costantly evade taxes. Without stricter regulations and a reform in the productive system our country will drown in corruption and debt
You do realize it’s stricter regulations that is the problem of Italy and also this is how corruption thrives through government rules and regulations.
@@valorzinski7423 I agree and disagree, taxes is what I call a necessary evil in society because we cannot operate a country without government service we need fire, police, military, education, courts and infrastructure. Though the government wastes so much money that I think sometimes taxes are evil like why is are tax dollars funding gender studies.
Instituting the Euro currency was a catastrophe for the Italian economy. The Euro was created to help Germany at the expense of its European trading partners. A floating currency for Italy would help stimulate stronger economic growth and help solve some of Italy's economic problems.
@@saveriocannata3447 Why does it only favor some countries but not others ? I always hear from Italians how great Italies economy is and how it is a net contrbuter to the EU. Something is wrong in this narrative isn't it ? Does compatibility with the Euro somehow sink with the amount of sunshine in a country or what is the problem ?
Great video. Good balance between the bad/ mismanagement topics, of typical economic videos Re: Europe now a days, with and the strengths of these economies. I’d love to see one of your videos analyzing the strengths and weaknesses of Spain’s economy
i’m chinese and living in a toxic and pathriarcal family. I live in italy and am an uni student, with maybe a too “diverse” mentality compared to my parents. moving out is the only solution to ease my mental and physical health, but it’s so difficult in a country which either exploits and gives low pay to teenagers, whose job opportunities are so low. I envy people with a good family, as they are able to live a nice youth with family support.
I feel you. I'm working on it as well, against bureaucracy to get a home I can call my own. Buona fortuna, spero per te che si sblocchi tutto prima possibile ❤️
Italy has stagnated for the last thirty years for a number of reasons. The most important of these are its industry having played catch up did not invest enough in R&D and fell behind those that did. It also lost out due to delocalisation and off-shoring of production in the clothing and footwear Industries. It is also burdened by inefficient public administration and universities where academic appointments are based on nepotism rather than merit and the rise of two populist parties that are good at protesting and campaigning but have no idea how to run an economy. The efforts made to join the Euro are often blamed but here it is more of missed opportunity. This should have been accompanied by reforms as took place n Germany and the Nordic countries. While some reform did take place if we look at the counter factual would Italy really be better off if it stayed out and carried on by continuously devaluing its currency? As an open economy they might have reduced the price of some exports like wine in doing so but arguably Italian wine is underpriced already. In automotive the fact that a large part of the value added and cost base involves parts and components that are imported would have led to an increase in the cost base and a narrowing of profit margins. Finally without the Euro Italy would have had to pay more to finance its outsized national debt. When countries started to make efforts to clean up public finances 30 years ago, Ireland and Belgium had similar numbers to Italy. The difference is that they were more successful in large part because they had politicians who did the right thing and did not kick the can down the road.
About the worker protection which makes it difficult to fire people, as an Italian I'd like to say that it is true, but not for everyone: it may be true for the older workers, but not for the younger ones who are usually precarious. Moreover, I think that it cannot be ignored that Italy is the only G7 country without minimum wage rates (there are some collective bargaining agreements, but they are clearly insufficient).
@@donaldclifford5763 For that q i think you can get your answer by looking at Argentina's currency or Turkeys. People do tend to save money so would you be happy to lose half of your savings overnight Italy to have economic growth they need to make it easier for investors to invest and they need to reduce the influence of the mafia
Italy has a huge fertile land as well as surrounding sea! I would be quite surprised if Italy starved to death. Farming is the fundamental economy and also the future!
They used to live in a palace , now they going to end living on the street with 2 meal a day eat and sleep like dog and cat. Can you live like that? Human been have brain , they need to do something everyday .
we also have radioactive wastes and chemical wasted buried under a lot of fields .... and listen to this one .... PEOPLE FARM ON IT !!!! PORCAMADONNA !
A very well made video. Finally, someone who doesn't call us "Mafia" or "Poor farmers" or some other amenities. I'm sharing this video on my facebook page righ now!!
I live in Canada (Toronto region) and people in their 20s here cannot afford to buy any sort of living quarters).. maybe people in their 30s still live at home here... so this just isn't an Italians phenomenon...
It is true that Italy has many problems that do not depend on the single currency. But there is a fact: throughout the 70s, 80s and even 90s, labor productivity in Italy was constantly growing, but starting with the adoption of the euro and the fixed exchange rate at the beginning of the 2000s economic growth has effectively stopped. We understand why: with the euro, both the Italian state and businesses have much less resources to reinvest and increase productivity. Italy should return to its national currency, but it is too hot a political issue and there is strong opposition from the Italian and European political establishment.
Economic growth was also backed up thanks to recurrent currency devaluation which made export easier but also greatly inflated public debt and inflation (far above the "healthy" inflation growth). With the Euro it's impossible for a single country to do so. The main Italian issue is that we (they) had no long term vision and planning, especially when there were abundant resources that could be invested this way.
@@FilippoBuracchi I agree with you about the last paragraph, but non the firt. The inflation in the 80s was brougth under control and in the 90s was at the same level as today. The public debt could also be controlled more easily: in the 90s the public debt was lowered, while with the euro the italian public debt is rising without control, also becuase the economic growth is very small. Yes, with the lira we paid high interest rates, but were well compensated by economic growth.
@@marcus2251 some economists would say that economic growth was backed up only thanks to devaluation, which exposed us to Soros's lira attack too. I'd rather prefer a small but constant growth under a controllable and healthy inflation than a big but unstable growth with a so high inflation that my last year's salary has lost 15-20% of its value because of the prancing inflation. Yes, I'm pro Euro and pro European Union, even if I think they both could had been done differently and better.
@@FilippoBuracchi that value of inflation was only at beginning of the 80's, and was provoked also by the petrol crisis of 1979-80, but then was gradually reduced (without the euro). 1980: 21,1% 1985: 8,6% 1990: 6,1% 1995: 5,4% 1997: 1,7% I don't think that the eurexit is the solution for all our problems, but i think that the euro is an additional obstacle to our prosperity.
@@marcus2251 I think the main obstacles are not within the currency itself but in the lack of sense of social responsibility, lack of vision by the leading and political class, lack of trust towards young generation, lack of investments in research and development, high rates of school leave, high rates of unpaid taxes and so on. Also, we spent (wasted) too much money just to make people happy without really making working reforms (eg: baby pensions) or in unsuccessful projects. The common currency only highlighted our faults and failures. If we learn from our mistakes we can hope in a brighter future. And to be honest, I don't think we did so much worse than Germany or Nederland. I just think they were better than us in making things look shinier than they really were. We are so naive...
An interesting look at the economy. I find that many of the challenges in the Italian economy stem from two places: 1) SME's and family-run businesses have a low potential for growth and high risk-aversion making employment growth in Italy a real problem. 2) The lack of willingness for Italian businesses to grow abroad - also coming from the issue of the small family-nucleus type of business model as well as a lack of understanding in IP laws globally and also skills available in other countries. These two points are of course overly simplified here for brevity but are definitely major factors in the Italian economy (compared to Germany and the UK for instance).
@@hurri7720 If you look at the bigger picture, there are significantly more SME’s in Italy who don’t have capacity to go abroad, or the desire. In terms of abroad, I’m talking outside of Europe and the US which are common markets where there is a lower risk. Italian businesses are extremely risk averse.
I would love if you could do a video comparing Italy to Japan. I think the two countries share so many cultural, historical, economical, demographical, geographical ties and not enough people think of comparing the two. I think there are more things in common than there are not. The thing that mostly divides us is our societies: where Japan is collectivist, Italy is individualist (also Japan didn't have something akin to the Roman Empire in its early history).
As an Italian, I think that a huge challenge for growth is culture: lots of people (as well as the political class) lack of honesty, sense of community, entrepreneurship and vision. Unfortunately I don’t see that new generations represent a huge change from this
The Italian economy is riddled with cronyism and red tape: a nation of people who believe that the govt is supposed to be their saviour inevitably ended up using it to defend a plethora of vested interests - the elderlies being one of the largest. I just really hope that my fellow Italians will grow to appreciate free markets and freedom of enterprise.
@@saswatrath609 Renzi is an incapable idiot, he didn't know how to reform the economy despite his attempt to do so. Is for this reason that in Italy he is pretty hated.
@@saswatrath609 Renzi stab everyone in their back, just to stay on the chair of the Prime Minister one more day. No one trust him, and so no one will vote for him.
Young people usually stay longer with their parents for a few key reasons: 1)We graduate later than the rest of Europe (Italian universities are very demanding, you hardly have time for a part-time job) 2)We enter the workforce later (before you're 30 all you can find are stages, internships and ill paying jobs) 3)We are averse to debt (if you don't have a stable career yet, why waste money on rent) 4)We don't move much, we have very strong ties with our city or region and we tend to stay put (if we leave, we go abroad) Let's be clear, WE DO WANT to get our own place, half of my friends left their parent's houses before they were 25, the other half is still there at 29. But no one shames you for that, we get it, it's not easy.
As someone from the UK doing a year abroad in Italy I can confirm that Italian universities are extremely demanding. The professors here are insane sometimes.
@@Sneakyturtle18 I don't know about volume of work, I never studied abroad. But time-wise for sure. Sometimes on the same day I had a lecture at 8am to 10am, then one at 12pm to 2pm and another at 6.30pm to 8pm. How am I supposed to do anything else with my life? How can fit a job in a day like this? 😂
I am amazed at what Italy still manufactures compared to Britain , the destruction to Italy's industrial base by the Unions has been bad but for Britain it has been total .
the Unions have nothing to do with destroying industrial base in Italy. Actually, they are the only ones fighting against delocalizations and to keep factories open...
@@carlomariamizzi8387 Ahahahahah! Ma se sovvenzionano la Polonia, che ci porta via le industrie, con i loro operai che prendono 500€ al mese? Ma che cazzo stai dicendo??!? Con te il lavaggio del cervello degli Eurocrati ha funzionato proprio bene, vedo!
I'm along with you, my British brother!! You won an important war by leaving this damn EU! I hope Italy may be the second Country to leave that living Hell, and then that the Union will disappear forever!
I just discovered your videos, I have to say, your videos are addictive! Watched 3 of them already. As a political science and international relations student in university, I’d love to see you unravel my own country Turkey as well! Subscribed!
Perfect picture of Italy. I just disagree with the sentence "Italy has an exaggerated stereotype of mafia". We actually deserve it and nowadays it's not a problem for southern Italy only, mafia is deep-rooted in our parliament and all major institutions. We just lost that war. Greetings from Italy, the most beautiful country on earth.
@@gaia7240 It is. I think the best way to describe the issue to foreigners is to say that the mafia in Italy is a systemic issue that still affects our institutions, governments and political class. It’s everywhere and it doesn’t help that abroad they see the mafia as a cool thing.
Raven tells it like it is! Bravo! Minus the "mama's boys" part, actually most of them are forced to stay at home due to the lack of social policies, enabling them to do so... Thanks for shedding a lot of light, anyway!👏👏👏👏
Thanks! This is one of the best video-documentaries of Italy that I´ve ever seen. Very balanced and showing what Italy is despite all the negatives things said in other Europeans countries......Italy is way much more than corruption and similars.......
The amount of unpaid taxes reflects in the country spending compared to gdp, the medium old age reflects in the number of young unemplyed and amount of pensions. Adding to this the political instability given to a particular elections system (bicameralismo perfetto) and a very slow burocratic process you can see how many problems the italian economy has, it's not acceptable, italy could be a much wealthier country if it really wanted
The amount of unpaid taxes reflects in the country spending compared to gdp. NO. Italy includes the "underground economy" in the GDP. More than 10% of GDP is undeground economy. The spending is high any way you look at it.
Good analysis. That's true that Italy has strong sectors and a lot of cards that should be played better. Talking about turism you, rightfully, spoke about major big landmark cities (Roma, Pisa, Firenze, Milano Venezia) slightly neglecting southern Italy places like Palermo, cagliari or Napoli (Matera as well) and that falls back to the poor logistic to get there. If you want to go in the norther italy you have multiple options from abroad (3 airports in Milan + 5 in ~1.5 hrs train like Torino, Genova, Venezia, Treviso and Bologna which is one of the strategic place for connecting northern and central Italy). The south instead has fewer connection which is really uneasy for people coming from abroad to get there in a easier way and the lack/bad status of infrastructure do not help reach every hidden gems like Siracura, Polignano, Lecce as well as Palinuro or the Ionic coast line. So you are forced to get a car or spend countless hours in public transports hoping to get wherever they want.
I guess an economy made up of small, family-run enterprises, would benefit from low taxes, it would make easier to hire people and to expand their business
Well said. Our biggest tragedy is that most Italians want to start their own business but its impossible with our ridiculously high taxes and overcomplicated bureaucracy.
@@pulse4503 ofcourse its a country with a dead economy high taxes corruption low salaries lmao nothing will ever change ,you work 6 days in a week and get paid 900€ a month for 13 hours of work daily whats more to say?!?
Italy's problem is its government. Work ethic and corruption is also a factor. Italy has potential but the people have to change their mentality. Their rejection of people born in Italy of color will also create a serious problem in the future.
As an Italian i agree. People here are more laid back and generally more interested in what's convenient for themselves or their family. The community isn't a priority as much as in other countries and that leads to a more relaxed life but also a lot of rampant corruption.
@@mygetawayart The young people have to be more creative. Jobs don't fall from the sky. The government should offer grants to youths who want to start their own business.
That is the most false thing I ever read in the comments, the typical stereotype of Eric and mentality when in reality Italy is the most hard worker and the most inclusive, don’t speak about something you don’t know because you have red two things
Racism is more rampant when there's poverty and lack of education, two things Italy struggle with As long as the local population suffers economically especially, it will be hard to make an average Italian less racists To make you understand: the percentage unemployment of immigrants and Italian is similar, which means we are ALL suffering,while in the northern European countries thee locals have a way higher employment (see Netherlands)
@@damn_jaz9895 it means that if they want they can build Lamborghinis in Germany and Gucci's clothes in France, owning is very different than working in...
it depends of what you men by "italian". if you go with "an italian company is a company that pays italian taxes and has it's HQ in Italy" then a lot of big players are no more italian
Excellent informative and educational presentation with American accent Please would you talk about: inflation employmentnt and tax, basic economic development for Africa, Thanks
Free market policies? Please no, they just make rich richer and poor poorer. If you want income inequality to increase, then go on, go for it otherwise stay away from that. Free market policies have never made a country richer. I suggest you to read the book "23 things they don't tell you about capitalism" it is written by an economist who strongly believes in capitalism as the best economic system we have, but he also shows the dark sides of it and the free market policies.
@@reptilev8625 true the second part but privatization is not the solution and competitiveness is just the end result that brings the same outcome, for capitalism profit is all nothing else, state ownership is what we should drive to and make sure nobody take advantage of it, resources are limited and the world is for all of us so we need to work together outside of the paradox of privatization, if we give them even a single chance then they are gonna step on towards their objective as we already see with big corporations, still Italy is leader in many aspects a top net contributor to the ue and has the highest quality of life so we only need to take back what was ours and privatized or sold and take a strong stance and let us be heard so we can also denounce the wrongs we have been subjected to Just look up the previous guy and his truth speaking
In Germany the situation is serious but not hopeless. In Italy the situation is hopeless but not serious. :-)
We spend a lot on pensions because there was a period of time in the 80s and early 90s when state employees (teachers, government officials, bureaucracy staff, railway and police higher-ups) could retire very early. There's quite a number of people in their 60s and 70s who have been retired for 30-40 years after working for half of that. And they criticize young people because "Youngsters today don't want to work".
Also, Italy has one of the oldest populations in the world. About 16 million people are retirement age and over. Also, yes young people (i am one) should be criticized they are a bunch of morons, for the most part.
Also you have to consider that we generally have some really high pensions (except for some cases where some old people don't get enough to live and that's caused by a really bad distribution) and we still go in pension quite early (only the so much hated law Fornero did something good, but then most of the politicians (who recieve votes from the oldest parts of the population because they are way more than us youngsters) decided that Quota 100 was good and spending even more on pensions was good.
esatto
Perhaps a little strychnine in the burrata. Kidding
It's not the number of pensioners, it's the unsustainable system created worsen by some of those factors. On the flip side the high youth unemployment can also be resolved by reducing retirement ages. But it's not as straight forward as that. The system needs to be sustainable first...
apart from cultural reasons, the reason why young italians dont move out soon is related to what youve said in the video: finding a decent job is hard and buying an house requires money that a regular italian 20 yo doesnt have
- a 19yo italian that would love to move out but is very far from being able to
I agree with you, totally. Leave home before 30 years old in Italy is almost impossible.
@@itsme7279 but it suggests that other Europeans aren't close with their family. Which is stupid ,I would see my relatives every holiday, my uncles,great sunts,grandparents,cousins. Today I frequently Skype my parents, okay I need to visit my grandma soon,but she is mostly surrounded by family (daughters).
It's stupid, it dehumanised other populations " oh marvellous Italians have such great family values"
So does everyone else ! It's a human thing.
I'm not mad at Italians just the way this stereotype is used to say things implicitly about other people.
I don't know why it bothered me.
Wise words Sara, finding a decent job is not at all easy in Italy and would take many governmental policy reforms to put the economy in better shape.
- a 20yo Australian that would love to become a permanent Italian resident if it weren't so impractical
@@jameshumphris amo??? ma come mi hai trovata lmaooo
@@alessiostaccioli9151 The system in Italy is really tilted to favor older workers at the expense of the young. It is tragic IMHO. Throw in the raccomendazione system and you have a recipe for stagnation.
Nevertheless, there are also a boatload of mammoni. As I once read, "If you hear an Italian woman say 'Amore', you can bet that she's speaking to her son and not her husband." ;)
Being Italian, I can confirm that every point discussed in this video is objectively explained and, considering the limited format in time of the video, has given a very good portrait of the overall situation, in my opinion.
Thank you 🙏
I only missed the financial problems with almost every small bank, that can't stay covered up forever.
@UCquUx3DKVYjXMbf9b1aWE1A It could be, the UK has probably dropped below India and France ... but maybe also below Italy ....
Non ha solo spiegato le privatizzazioni craxiane tra 80/90
He missed an incredible number of hugely relevant topics. Both of you have clearly a juvenile point of view on the matter. Refer to my separate comment for proper motivations.
I would like to hear some thoughts about his, but I genuenly belive that one main thing which Italy needs is confidence. I know, it might sound insignificantly, but I caught the impression that Italians have gotten such a bad image that they don't even belive themselves in fixing their country's problems.
As a young adult in italy the problem is the older generation they don't see the younger generation as capable because for exaple i belive in labour law while older folk denounce it, then the jobs pay too little for youger folk a friend of mine was offered a job as a waiter they gave him 600€ and 200€ on the side. But the other massive problem older folk don't want to pay taxes. Why ? There are too many! I helped my father in our small business and counted how much we gained for product sold it was 50% like from 10€ we got 5€ without taxes with them we made about 12/15%. That is why we moved the family business away
And one massive problem imagine if every italian politician was a Donald Trump is just a joke italian politics and burocracy (but thank god the last one is getting updated)
The problem is the government, the politics in Italy are extremely ineffective due to divisions and just endless red tape.
The whole government system is broken, it can’t operate properly and get stuff done, in essence everyone is working with their hands tied behind their backs, they are all working against each other instead of for the country.
As is mentioned in the video, literally a new leader every year which speaks volumes regarding the state of the government system in Italy.
As an Italian, it’s a crying shame because it’s a beautiful country, with still lots to offer that is slowly ruining itself from within.
@@dia6olo64
At the national level, this is very much true. Though it should be of note what local municipalities have been able to accomplish in spite of covid, high debt, and bureaucracy; even Naples has been on a metro-building spree that has surprisingly been on time and not scandalized by anything ( 🤞 ). I’m not necessarily pro EU, but if it is to remain implemented, economic integration (as aforementioned), would ultimately be best for the union at large; despite it being at the cost of members like Germany, Ireland, or the Netherlands.
@@lclhago2098
Man labour laws are exaggerate in Italy. The video btw lists it as one of the causes of Italian unemployment, and virtually all economists, Italians and not, agree that labour laws must be relaxed.
Wages will increase naturally as the economy improves. However, to artificially increase them, will only results in unemployemnt as there ar e or enough resources to pay everybody a high wage, which itself will only reduce economic growth and in the future further decrease wages.
I hope Italians know how beloved their nation is outside their borders. In North America especially Italy is considered one of the most beautiful countries in the world. So much culture and history and not an endless sea of strip malls and parking lots.
Thanks
Thank you. I won't call the U.S.A. "an endless sea of strip malls and parking lots" anyway, even if I can see your point.
@@gabrielesolletico6542 but it is lol America has no culture
Let me tell-a you, ya just got better guns
@@kronosmambrini9227 mafia is not a gun, it's a quite organization, you don't see it you don't hear it, but it's already behind you!
My granpha always said that to me... but today mafia is worldwide
PIIGS: typical British offensive acronyms.
It's PIGS now. 🐖🐷📉
Ireland 🇮🇪 has managed to leave this list
What does it mean?
@@joedwyer3297 it's an acronym for Portugal, Ireland, Italy, Greece, Spain
Was It so difficult To call it SPIIG?
How is it British - it comes from Goldman sachs🖕🏻nothing to do with Britain.
There's even a version which includes GB,as Britain does not have a perfect economy either.
As an italian i want to thanks u for this very accurate job. Not even an italian would be so precise in every aspects. Well done mate keep doing like this
Thank you for the support 🙏
The only missing thing is the partial privatisation of statal businesses that led to the economic growth of '90
Our cars are more practical, but the Italian ones look cooler. 🇩🇪❤️🇮🇹
Looks like the Axis Powers gang is getting back together
only the Japanese cars are reliable
@@ziadghannam7704 Toyota
@@ziadghannam7704 **Honda F1 engines have entered in the chat**
Ex-Axis Country have gr8 automobile companies.
Is that a coincidence? 😁
I must be honest with you, this is one of the BEST videos about italian economy I have ever seen! Finally someone that doesn't fall for the same, old, stupid stereotypes and tries to see things objectively! Well done! I can see you made good research.
To add something, Italy is one of the countries with the highest private saving rates in the world. Italian private saving is 2 times bigger than the public debt! But this leads to another problem with the italian economy.
Italians tend to save A LOT. They don't spend that much, prefer saving for the future, so privately italians are wealthy but the state is poor.
True
thank you for watching 🙏
Are you saying Italians are frugal like the Germans?
@@johnmacasinag3996 No, because I don't know how frugal germans are. I didn't make any comparison, I was simply saying how much the italian private saving rate is, i.e. around 2 times italian public debt.
@@johnmacasinag3996 If you consider the rate of private debt, Italy, Germany and I believe also Spain are the Western European countries with the lowest private debt. While the countries defined as "frugal" such as the Netherlands, have private debt among the highest in the world, about 290% / GDP.
Frugal countries are not very frugal
As an Italian i feell the day that we will have a reliable and transparent public service I think trust among Italian consumers will finally rise and an economic boom created by internal demand will occur. But until Italian institutions and bureaucracy remain prone to inefficiency and corruption it will be hard to assist to a full economic recovery. we cant relyonly on exports forever
Quello che dice non è del tutto accurato, noi da 20 anni abbiamo un surplus primario, ovvero le nostre entrare sono maggiori delle nostre spese. Perdiamo il surplus nel pagamento degli interessi sullo stock di debito. Dal 2000 mola abbiamo sottratto dall’economia più di 700 mld di euro. Ci hanno preso per le palle comprandoci il debito e l’unico modo per accedere ai fondi è una garanzia che non può venire dal nostro Stato, ma da quello tedesco.
@@jacopofacheris7215
?!
Il debito non lo dobbiamo alla Germania… ma ha noi stessi. Ecco perché si chiama debito publico, banca d’Italia ritiene la fetta di debito più grande.
@@jacopofacheris7215 quindi secondo te ci hanno fatto un danno comprandoci il debito?
@@CarloRossi54523 il debito se detenuto dai cittadini tipo Giappone è sicuramente meglio che detenuto dall’estero. Poiché gli interessi generati dallo stock di debito non rientro con il consumo nell’economia, ma essendo afflussi di capitali, questi usciranno dalla nostra economia.
@@leonardodavid2842 falso
I fully agree with the point that one of the main issues about Italy is that italians don't really trust the government - because of many regrettable decisions politicians made in the last decades -, that makes many business don't feel any kind of guilt by evading taxes, because "even by doing so, things wouldn't change for the better". Sadly, it's a common thought
They don't trust government and yet they keep voting for the party that wants more government control
I think most citizens dont trust there goverments. Even in a stable country like germany a very big portion of people don’t believe in democracy.
@@GpGx9955 it's probably a choice of 'who is the lesser evil' 😀
@@teekay3983 3 years ago the lesser evil was a party whose candidate PM was a guy that struggled with basic Italian grammar. And I'm not even kidding
@@GpGx9955 and that should tell u how bad is the other party
The job market in Italy truly benefits no one. Wages can sometimes be so low that it is more lucrative for people to just not work and live on older family members’ pentions. There is no minimum wage, taxes are high, unemployment money is often given unfairly. On the other hand as you said, employees have to be extremely careful about who they hire, since it’s very hard to fire people. This vicious cycle creates a sense of hopelessness and stagnation that I have yet to experience in any other developed country.
As a foreigner living Italy, I will say your video is clearly explained and lucid.
Che fai di bello nel mio Paese?
@@gabrielesolletico6542 if he live here... it's his Country also.
@@gabrielesolletico6542 i live in Veneto, im a truck driver
@@gabrielesolletico6542 You are exactly one of the problems that Italy struggles with.
Italy is rapidly aging. There are few working people in relation to pensioners. And what you ask a foreigner who may be paying your father's pension, 'what are you doing here?'..I hope you don't mean it like that.
@@You-mr3lo what did he say of so bad to trigger you? All europeans countries and north America have the same issues.
Very well done! I am in italian and hold a degree in economics and I must say this was pretty spot on. There are only a few comments that I would like to add:
- The fact that people move out relatively late is not just due to cultural reasons. Cities and industrial areas where it's generally easier to find a job are relatively pricy on a real estate standpoint while the salaries are low. For example, a very lucky young graduate (I'm talking master's degree etc), will make approximately 1400 eur per month as salary, while the rent for an apartment in Milan is at least 800 eur (living on your own far from the center). If you compare the figures for an average German graduate in Berlin, which makes more than 2000 eur and has cheaper rent as far as I understand, I'm sure the message is clear.
Obviously, this is not the same throughout the whole country but I'm willing to bet that we have one the highest rent/salary ratios in the world. I would argue that one of the reasons is that, because of the many regulations, it's very difficult (and costly) to build a house from scratch and therefore offer in the real estate market is not very flexible. That is because there are so many cultural preservation and environmental regulations that you can't even imagine. Plus it takes ages to get permits depending on where you are. For example, I was recently trying to install a roof window in an old farmhouse/apartment in the middle of nowhere. I had to ask for an authorization that was eventually rejected (after 6 months) because the building is in an area of "historical importance". I can assure you, it's a piece of crap farmhouse in the middle of the f***** nowhere. And that's for a roof window. Imagine building a whole house.
- Another reason why our economy is so ineffective is the extremely slow and ineffective rule of law. Businesses don't want to wait 5 years to see their disputes settled. Sometimes they won't even invest in the country because of it. It is a real issue especially in times of crises. E.G. : company A does not pay company B. Company B cannot wait 5 years for the ruling to get it, it will therefore either sell its credit to a bank for a big discount or go bankrupt because it need the money right now.
- You are right, entrepreneurship is not very much encouraged in the country. Culturally we tend to prefer safer jobs. A testament to this is the fact that our startup ecosystem it's basically non existant compared to other european countries. You could argue that we don't have entrepreneurs/startups because we don't have an ecosystem, it probably goes both ways. However, our culture does not really encourage risk taking and I bet any italian I know would say that his or her family would tell him that he was mad if he expressed the wish of starting a company from scratch instead of getting hired somewhere.
- We have a serious skill mismatch problems. 10% of the population is unemployed, nevertheless companies cannot find the profiles that they want to hire. That's because unemployed people are generally low skilled while companies require things like engineers and data scientists. Data scientists and engineers tend to leave the country and go live somewhere where they can earn significantly higher salaries like Germany or Switzerland.
I could probably go on for an hour or so, hopefully whatever I wrote was interesting to someone,
Cheers
thank you watching and for the insights 🙏
If i may add extra info FYI:
- Even if regulation weren't a problem you would still not be able to build a house since you most likely need a mortgage, you can't get a mortgage without an indetermined contract. It's almost impossible to get that kind of contract before 35 yo.
- To worsen the skill gap there is also the fact that they pay is generally shit compared to other EU countries, for any job including high skill jobs. I have a friend that has a master degree on automation technology and after 3 year working in the same place his base salary is 1300€ (net), same story for other engineers i know. If you don't mind leaving the country that's what you do since you probably end up with at least the double + benefits.
- One highly overlooked thing is that in 1993 they removed the "scala mobile" on salaries. Basically it was the inflation adjustment on the base salary of employees. Since then the base salary depends on "national contracts" that are different depending on which category you work. These contracts are reworked to increase the base salary sometimes. Needless to say that none of them kept up with inflation.
CPI 1993-2001 is up from 60 to 104, that's 70+% increase. My mother worked the same job in the same place for all her life, retired last year, she didn't get 70% increase even including the increase you get because of seniority (the amount of years you worked)
Ben detto
The “P.I.I.G.S” that got me 😂 sorry! Great video as usual and nice and clear English us non natives
Thank you for watching 🙏
Amazing video, it's the best description of Italy I've ever heard.
Thank you for watching 🙏
I do not think that joining the euro was a bad idea, it’s the opposite. In 20 years Italy saved 700 billion euros in terms of less interest on the debt, the problem was and will ever be its political class; joining a currency union requires strong reforms and a change from a public spending and inflationary mode to a more open and stable system, a change that Italy didn’t take because it’s not politically feasible. The biggest economic problem of Italy, in my opinion, is not in its economy but in its political class, a class that, after the government of Super Mario Draghi, will strike again in its poor competence and blind view of the future.
There's no view of the future since you enter the parliament, govern 2 years and then take 0 responsibility whatsoever
Non capisci davvero un cazzo di economia, il tuo commento é palesemente quello di colui ha creduto agli euroinomani europeisti genuflessi.
I totally agree with you on the Euro but I don't think we can blame our political class of everything, since we are luckily not a dictatorship we are able to choose our own parliament and I think it reflects perfectly the population. The real problem at the base of everything is the extremely old and overall ignorant population. Plus there are extremely low investment on school and research due to the lack of future prospects, all of that combined makes our country basically a dog biting his own tail until it's dead over a pile of debt.
@@emanuelebertelli6450 Tu che invece ne capisci ci sapresti illuminare su come l'Europa ci abbia rovinato e magari anche dare qualche idea per risolvere la situazione
@@emanuelebertelli6450 perché?
Video realizzato molto bene e con informazioni precise🇮🇹
In my experience the greatest issue in Italy is taxes and bureaucracy. I once wanted to open a business with my uni friends. The state expect you to pay a ridiculously high amount of taxes BEFORE you even generate any profit. Not to mention its impossible to hire due to the overcomplicated requirements. Despite its young population tending to be very creative, banks and financial institutions are overly conservative and don't really understand much about innovation and as a result, startups often have to migrate abroad. It does not help that politics is either ruled by ex communists converted to bankers on the left and racist criminals on the right.
💯 % true
Call me dumb or whatever lmao i mean aren't Italian the most artistic ppl ?? Like u invented fashion arts Roman emperor... The beautiful ancient statues and buildings etc.... 😒😒😒😒😶😶😶😵🤧 sigh
@@AlbumLeViola Well all it takes to kill an economy is high taxes and inefficient bureaucracy. 😔
@@Bhethar if the taxes are spent for the good of the country it's OK I guess... But u know sometimes government cant be trusted 😤😤🙁☹️
@@AlbumLeViola you have no idea of how much thoose leeches empties the free economy to move personal interests
A great video. You really need more subscribers.
Waiting for that video on India.
Thank you 🙏
The fact that Italians leave the family around 25-30 years is related to the cost of life. Here in Italy when you get your graduation for the first 2/3 years you can change many jobs that the most of the time give you from 600 to 900€ per month and if you consider that a rent costs 600€ or more, if you live in cities like Milano, Roma, etc. a young man/women can't afford to live their lives so is better to live with your parents and divide all the expenses for these two or three years and when you find a better job or you get a promotion than most of the Italians move out. I'm one of these Italian and it's not related to the union we have with our families it's only a matter of how are we going to live with only 600€ per month.
I find the rest of the video very interesting and mostly very specific and I can see or better hear that you have studied what Italy is capable and what really makes this country the third economic country in Europe. Thank you for not saying that we are just pizza, mandolino and Mafia. Italy has a lot to offer and I think most of the people just by searching on the internet can see what we really can do and what we made, but as you say we lost most of our hope in the politicians and institutions for the most diverse reasons, but I can see in my generation (20-25 years old) that we want to change in a better way our prospective and change this country in better in every aspect
I'd say it's both. Culturally there is very little effort from the parents, generally, to make their children leave the house once they're out of school. This is reflected in many other aspects of life such as marriage and having children (which, of course, is also worsened by the economic crisis like you said). There are many countries where the cost of living is much higher and yet the families fully try their best to make the children independent as soon as possible. This doesn't happen in Italy, especially in the south, unless they're forced for education reasons, but even that is just limited during university (while in other countries this can happen even before).
As an African descent living in Italy for many years now your comment has explained many questions I’ve had on my mind for long time. As an African who couldn’t acquire higher education for reasons I can’t talk about now, I think we’re feeling more the economic instability currently happening in Italy. I hope things get better
Niente di più vero
I agree in general with your statements. I would just include the packaging industry among Italy's top economic sector. I would also add that private debt is still low compared to other European countries and that large majority of Italian families own their house.
But did the author intentionally misspell "basket" just so I'd comment?
Impressed with your work! Could you consider Poland please 🙏
The Raven will fly over Poland soon!
No one with a minimum of economic culture would ever compare the Italian economy to an Argentine or a Venezuelan one.
Or Greece or Portugaul.
As an argentine myself I have to agree. But I have been looking for places to move, having an italian passport I obviously looked into Italy and I am not sure I like what I see. It can change ofc, and I may also be looking at things from a paranoid frame of mind.
@@Kima344 I believe it's a personal evaluation, also based on your skills and your expectations.
@@Kima344 Italian here, what do you fear the most about moving here, if I may ask?
@@grindelz well it is a mix of things. I am a medical doctor in arg, our salary is not the worst (I can live and eat every month) but we usually have more than 1 job, and at least one of those is undeclared employment and even then it is impossible to save. The usual in arg but you really have to understand that if we were to pay every tax we really couldn't pay for essential stuff. I think everyone understands that evading taxes and the like is not the solution, and it puts more pressure on the unlucky ones that don't have the option of not paying 100% and also think that the majority of people who evade would gladly pay if taxes where to adhere to reality. So if you have so many people in the dark it is a symptom, not the cause. Bc at the end of the day it is easier and safer to do bussiness if you are clean. I get mad writting about it haha but here somtimes they decide you have retroactive tax increases, stupid laws that are implemented and changed as fast as they can think of them, all the limitations on the usd, etc. And ofc you are going to have half or more of the econmy working like a black market if your gov does things like that, but people let them. You can even find some who agree that the solution is more more more of the same old thing, and ofc they vote like that. BUT I can evade things like that here in my country, if I go to Italy it would only be the right thing to do to follow the law. I would be more like a guest in your country, and I would be of that percentage of people who pays every month and every year. And I know that looking too far in the future is of no real use, but I fear that 15 or 20 years from now your taxes will make even less sense that they do now and I will be paying them in a new kind of argentine hell hahahah To be 100% hones, I think my real fear is just populism and economically illiterate societies.
edit: and I say economically illiterate, but if you are you are not going to stay that way for long hahaha you are going to learn things the hard way, while bringing everyone around you for the ride.
There's also a big problem of the very rich northern Italy and the poor southern Italy, particularly south of Rome. Italians (in my opinion!) should aggressively foster their agricultural industry in the south, which would really improve things there.
The” questione meridionale” is what the problem was called since unification in 1861 .... there is no will to solve it . End of the story
The main problem in Southern Italy (after the extreme corruption and the fact that it is quite far away from the economic core of Europe) is the awful education system
@@unknownzzz5115 Sadly, I agree with that assessment. 🙁
@@unknownzzz5115 True. Respect of the rules should be enforced at gunpoint in the South. Also, the "strongholds" of the various mafias should be attacked by the army and razed to the ground (we know exactly where they are and who they are) brick by brick.
it's funny to see these comments about agricultural industry and nobody mentioning the issue of "caporalato", which is a huge phenomenon in the South.
Nice video! Please consider doing a video on Russia, Turkey or Iran next
For sure! Thank you for watching 🙏
@@EconomicRaven and Indonesia too, sir, if you dont mind 🙏
Italy is the best country in the world. Even if it makes life a bit hard on its citizens, it is a small price to pay for living there! Lots of love from your brothers and sisters in Greece
It was a nice place to visit in 2005. I'm sure it's still nice.
Visiting is not the same as living
@@rob5197 I can't live everywhere Rob.
If you come to places like Turin for example, there has been a great many changes since then. During that time we held the winter olympics and modernized the city, added an underground line, many modern buildings. If you go to Milan, it feels like a super modern almost futuristic city thanks to all the newest skyscrapers and plazas they built. Other parts have modernized and changed but I wouldn't say it has gotten worse since then.
@Stadia IT Grattacielo e Roma sono due parole che non possono stare nella stessa frase, eppure ogni tanto ci provano a proporne qualcuno
Please come back, if you enjoyed your stay.
In 1998 a series of reforms were passed that enabled a lot of flexibility in hiring and firing; more reforms with the same aim were introduced in 2002/03. Considering these reforms affected large sections of the population, especially those who are in their forties, thirties and twenties the assumption that unemployment is due to the lack flexibility in the labour legislation sounds a bit bizarre.
I studied this thing on university and was about to wrote the same thing.
For an introduction to Italian economics this is a pretty well researched video. Thumbs up.
Thank you 🙏
I was told stories about how my great grandma hated the change from lira to euro cause she had to modify the price of the eggs and it never added up
Ahahahahahah fra ma che ce racconti
@@diego89132 no davvero
Stava li a fare un casino e mia madre che diceva: "ma mettili a un euro l'uno circa, dai" perché sennò nascevano i pulcini prima che li vendessero
Hahaha ma perchè vendere uova gallate?
@@Hanagigi ma bho dicevo per dire
E questa è UNA storia di mia bisnonna
Ce ne sono...
@@breadlord2855 vabbè dai 1 euro per un uovo è assai
Thank you for your fantastic video,please continue and make a video for all the country through out the world🌸
Thank you for watching 🙏
What Italy needs is to return to its Machiavellian politics.
Think about all the damage that been done by the USA and its corporations to Olivetti, ENI and the scheming with the nuclear power plant and rearmament programme in the 1980s that so heavily indebted our nation. We are better of allying with out best frenemies; France and Germany. I truly believe this tripartite alliance would be an unstoppable economic engine, but it can only work if we leave our big ego's home.
True but just look at how much France and Germany did us dirty, they also need to change
Germany is a great ally but France is a no from me
They hate our possibility of dominating the Mediterranean sea once again
France want a weak Italy because ot helps them having a tight grip on the Mediterranean sea thus reaping a ton of Influence in North Africa and its Neighbours (Spain and Italy)
@@thelastpagan4999 true but I don’t feel the same towards Germany they need to still win my trust and the same goes for northerners exploiting others or using taxation to steal businesses in the eu that is just hypocrisy, I suggest you again nova lectio
The best solution would be that Germany returns to catholicism and France also and clean the catholic church ,than it will be a natural aliance between christian countries .
The german reform was a hit for christianity and divided Europe between catholics and protestants , it created the conditions for the appearance of atheism and with that of comunism and naziism .
@@marktwain8121 NO NO NO
Compliments for the precision and the completeness of the information, which accurately reflect county’s problems and potentials. Just a big problem is here missing: the bureaucracy is very slow and sizable and this cause incapacity to spend efficiently the available money in infrastructures or other useful projects, that remain unfinished
8th biggest economy in the world so that means there are only 7 countries that can do better than Italy now.
AWESOME VIDEO ABOUT ITALY!!!! this is for all the Hater's 🇮🇹, my friend, but you forgot including '' the Italian private debt is the lowest in occident '' and Italy have the 2° biggest Gold reserve in the World
T.h.a.n.k.s f.o.r w.a.t.c.h.i.n.g. f.o.r m.o.r.e i.n.f.o o.r..g.u.i.d.a.n.c.e.
W.H.A.T.S.A.P.P✅••
+1•2•1•3•5•8•7•4•0•8•0
No its not true..the 2nd biggest gold reserve has Germany
lasagna with a spoon... are you serious?...
-an italian
Chicken on pizza 😅
I live in Italy since most of my life...
Questo video sarà interessante
(this video shall be interesting)
awesome video bro, you did forget the massive Defence industry (Fincantieri for example building FREMM Frigates for USA, Egypt, Indonesia, etc) billions into the economy. cheers from Australia.
You have spoken the truth and nothing but the truth my friend ! Kudos on the work you've put in... 😄
Thank you 🙏
Very optimistic video, We need to have confidence to fix the economy and use the potential
Great video! You deserve much more subscribers.
Thank you 🙏
Italian here. Benjamin Franklin once said: only two things are certain, death and taxes. Now, I grew up with another quote: only one thing is certain, death
Italy was made just by people farming still in the 60, also without the Marshall plan and just staying in the west world would make Italy grow. While being the economical policies centered around Germany in EU destroyed Italy. Italy continually suffered the bad reputation given from the other European countries that had also an interest to do that, so much that even Italians started to believe that.
One of the main problems of our country is the mentality of the people and the structure of businesses. 90% of italian businesses are small enterprises that costantly evade taxes. Without stricter regulations and a reform in the productive system our country will drown in corruption and debt
You do realize it’s stricter regulations that is the problem of Italy and also this is how corruption thrives through government rules and regulations.
@@05juanluis regulations aren't equal in all fields, in Italy small business evade taxes and underpay workers all the time
@@alorgb7440 maybe the taxes are too high so small business avoid them and if the workers are getting underpaid then get a union involved.
@@05juanluis taxes are evil, evading taxes is the highest form of patriotism and anti racism.
Those small business owners are the true heroes!
@@valorzinski7423 I agree and disagree, taxes is what I call a necessary evil in society because we cannot operate a country without government service we need fire, police, military, education, courts and infrastructure. Though the government wastes so much money that I think sometimes taxes are evil like why is are tax dollars funding gender studies.
That is a great analysis... some imprecisions but overall a fair breakdown of the situation..
Thank you, great video
Thank you 🙏
Instituting the Euro currency was a catastrophe for the Italian economy. The Euro was created to help Germany at the expense of its European trading partners. A floating currency for Italy would help stimulate stronger economic growth and help solve some of Italy's economic problems.
That is correct! Since the euro came in force the italian economy is in an arrestable descent, favoring Germany and France and the UK.
@@saveriocannata3447 Why does it only favor some countries but not others ? I always hear from Italians how great Italies economy is and how it is a net contrbuter to the EU. Something is wrong in this narrative isn't it ? Does compatibility with the Euro somehow sink with the amount of sunshine in a country or what is the problem ?
@@mrx2062 Do you want that I will laughing for you silly sentence? You have only fog in your country!
Man your videos are sooo goooddd !
Keep up the good work brother !
💪
Thank you 🙏
Italy makes stuff people desire.. that type of brand power cannot be bought over night.
Except from China, because the CEOs of our enterprises are a bunch of cowards.
Great video. Good balance between the bad/ mismanagement topics, of typical economic videos Re: Europe now a days, with and the strengths of these economies.
I’d love to see one of your videos analyzing the strengths and weaknesses of Spain’s economy
the Raven will fly over Spain soon!
i’m chinese and living in a toxic and pathriarcal family. I live in italy and am an uni student, with maybe a too “diverse” mentality compared to my parents. moving out is the only solution to ease my mental and physical health, but it’s so difficult in a country which either exploits and gives low pay to teenagers, whose job opportunities are so low. I envy people with a good family, as they are able to live a nice youth with family support.
good luck my friend, I hope things get better for you.
Do you have Italian citizenship? I think you may have a proper plethora of support in that case
@@tropposcontato1948 ci sto lavorando, ma come sempre qua si va a rilento😭 spero di fare presto il giuramento e avere la cittadinanza
I feel you. I'm working on it as well, against bureaucracy to get a home I can call my own. Buona fortuna, spero per te che si sblocchi tutto prima possibile ❤️
On point. Been to Rome, and this is quite nostalgic. Well-researched information you shared here. Thank you.
thank you 🙏
Italy has stagnated for the last thirty years for a number of reasons. The most important of these are its industry having played catch up did not invest enough in R&D and fell behind those that did. It also lost out due to delocalisation and off-shoring of production in the clothing and footwear Industries. It is also burdened by inefficient public administration and universities where academic appointments are based on nepotism rather than merit and the rise of two populist parties that are good at protesting and campaigning but have no idea how to run an economy. The efforts made to join the Euro are often blamed but here it is more of missed opportunity. This should have been accompanied by reforms as took place n Germany and the Nordic countries. While some reform did take place if we look at the counter factual would Italy really be better off if it stayed out and carried on by continuously devaluing its currency? As an open economy they might have reduced the price of some exports like wine in doing so but arguably Italian wine is underpriced already. In automotive the fact that a large part of the value added and cost base involves parts and components that are imported would have led to an increase in the cost base and a narrowing of profit margins. Finally without the Euro Italy would have had to pay more to finance its outsized national debt. When countries started to make efforts to clean up public finances 30 years ago, Ireland and Belgium had similar numbers to Italy. The difference is that they were more successful in large part because they had politicians who did the right thing and did not kick the can down the road.
Clear brief analysis.
A bit superficial though
@@Marco-1997 To me it reads spot on, from what articles I've come across over the years.
@@Marco-1997 u can’t explain everything about that in the comment section of a social
@@FabFrag right but this is full of bias and it does ignore of all the forces that wronged like the us and their reintroduction of various mafiosi
Excellent job, this is perfect for high school students of Italian learning about the culture alongside the language
Thank you 🙏
Great video, could you maybe do Portugal soon?
the Raven will fly over Portugal soon!
@@EconomicRaven niceee
"Nobody kicks a dead dog" - Dale Carnegie
About the worker protection which makes it difficult to fire people, as an Italian I'd like to say that it is true, but not for everyone: it may be true for the older workers, but not for the younger ones who are usually precarious.
Moreover, I think that it cannot be ignored that Italy is the only G7 country without minimum wage rates (there are some collective bargaining agreements, but they are clearly insufficient).
T.h.a.n.k.s f.o.r w.a.t.c.h.i.n.g. f.o.r m.o.r.e i.n.f.o o.r..g.u.i.d.a.n.c.e.
W.H.A.T.S.A.P.P✅
+1•2•1•3•5•8•7•4•0•8•0
I like Your coherent take and the simple, direct approach.
Thank you 🙏
The euro has been a disaster for Southern Europe
Should Italy drop the Euro and revert back to the Lira?
@@donaldclifford5763 For that q i think you can get your answer by looking at Argentina's currency or Turkeys.
People do tend to save money so would you be happy to lose half of your savings overnight
Italy to have economic growth they need to make it easier for investors to invest and they need to reduce the influence of the mafia
@@donaldclifford5763 yes
That’s a very Southern thing to say.
Italy has a huge fertile land as well as surrounding sea! I would be quite surprised if Italy starved to death. Farming is the fundamental economy and also the future!
They used to live in a palace , now they going to end living on the street with 2 meal a day eat and sleep like dog and cat. Can you live like that? Human been have brain , they need to do something everyday .
You forget the climate crisis. Science is clear on that matter: agriculture will pay a heavy price in Italy as well as the world.
You forget that a large chunk of that area is hilly/mountainous, therefore not particularly suited for agriculture
we also have radioactive wastes and chemical wasted buried under a lot of fields .... and listen to this one .... PEOPLE FARM ON IT !!!! PORCAMADONNA !
@@thelonestar_0336 negare non risolverà il problema !
A very well made video. Finally, someone who doesn't call us "Mafia" or "Poor farmers" or some other amenities. I'm sharing this video on my facebook page righ now!!
Thank you for watching 🙏
@@EconomicRaven Thank you for uploading!
I live in Canada (Toronto region) and people in their 20s here cannot afford to buy any sort of living quarters).. maybe people in their 30s still live at home here... so this just isn't an Italians phenomenon...
Agree with you! Shit nowadays is everywhere
great video! Well-done you!
It is true that Italy has many problems that do not depend on the single currency. But there is a fact: throughout the 70s, 80s and even 90s, labor productivity in Italy was constantly growing, but starting with the adoption of the euro and the fixed exchange rate at the beginning of the 2000s economic growth has effectively stopped. We understand why: with the euro, both the Italian state and businesses have much less resources to reinvest and increase productivity.
Italy should return to its national currency, but it is too hot a political issue and there is strong opposition from the Italian and European political establishment.
Economic growth was also backed up thanks to recurrent currency devaluation which made export easier but also greatly inflated public debt and inflation (far above the "healthy" inflation growth). With the Euro it's impossible for a single country to do so.
The main Italian issue is that we (they) had no long term vision and planning, especially when there were abundant resources that could be invested this way.
@@FilippoBuracchi I agree with you about the last paragraph, but non the firt.
The inflation in the 80s was brougth under control and in the 90s was at the same level as today. The public debt could also be controlled more easily: in the 90s the public debt was lowered, while with the euro the italian public debt is rising without control, also becuase the economic growth is very small.
Yes, with the lira we paid high interest rates, but were well compensated by economic growth.
@@marcus2251 some economists would say that economic growth was backed up only thanks to devaluation, which exposed us to Soros's lira attack too. I'd rather prefer a small but constant growth under a controllable and healthy inflation than a big but unstable growth with a so high inflation that my last year's salary has lost 15-20% of its value because of the prancing inflation.
Yes, I'm pro Euro and pro European Union, even if I think they both could had been done differently and better.
@@FilippoBuracchi that value of inflation was only at beginning of the 80's, and was provoked also by the petrol crisis of 1979-80, but then was gradually reduced (without the euro).
1980: 21,1%
1985: 8,6%
1990: 6,1%
1995: 5,4%
1997: 1,7%
I don't think that the eurexit is the solution for all our problems, but i think that the euro is an additional obstacle to our prosperity.
@@marcus2251 I think the main obstacles are not within the currency itself but in the lack of sense of social responsibility, lack of vision by the leading and political class, lack of trust towards young generation, lack of investments in research and development, high rates of school leave, high rates of unpaid taxes and so on. Also, we spent (wasted) too much money just to make people happy without really making working reforms (eg: baby pensions) or in unsuccessful projects. The common currency only highlighted our faults and failures.
If we learn from our mistakes we can hope in a brighter future.
And to be honest, I don't think we did so much worse than Germany or Nederland. I just think they were better than us in making things look shinier than they really were. We are so naive...
When has Italy been any different. If Italy wants to change, it will.
Great 🔥 , would like to see a video on indian economy
An interesting look at the economy. I find that many of the challenges in the Italian economy stem from two places: 1) SME's and family-run businesses have a low potential for growth and high risk-aversion making employment growth in Italy a real problem. 2) The lack of willingness for Italian businesses to grow abroad - also coming from the issue of the small family-nucleus type of business model as well as a lack of understanding in IP laws globally and also skills available in other countries. These two points are of course overly simplified here for brevity but are definitely major factors in the Italian economy (compared to Germany and the UK for instance).
The Italians have bought quite a few companies abroad. For instance Morgan cars in Britain and Nautor Swan in Finland to name two.
@@hurri7720 If you look at the bigger picture, there are significantly more SME’s in Italy who don’t have capacity to go abroad, or the desire. In terms of abroad, I’m talking outside of Europe and the US which are common markets where there is a lower risk. Italian businesses are extremely risk averse.
I would love if you could do a video comparing Italy to Japan. I think the two countries share so many cultural, historical, economical, demographical, geographical ties and not enough people think of comparing the two. I think there are more things in common than there are not. The thing that mostly divides us is our societies: where Japan is collectivist, Italy is individualist (also Japan didn't have something akin to the Roman Empire in its early history).
Sergio Georgini is the best Italian brand I would waste my money on.
As an Italian, I think that a huge challenge for growth is culture: lots of people (as well as the political class) lack of honesty, sense of community, entrepreneurship and vision. Unfortunately I don’t see that new generations represent a huge change from this
Italians also need to have more children.
Good job. Please also make a video on the Indian and the Chinese economies.
You should have shown many more pictures of southern Italy
Naples and Palermo for example
Great video, you gained a new subscribe from an Italian 😁
Thank you for watching 🙏
The Italian economy is riddled with cronyism and red tape: a nation of people who believe that the govt is supposed to be their saviour inevitably ended up using it to defend a plethora of vested interests - the elderlies being one of the largest. I just really hope that my fellow Italians will grow to appreciate free markets and freedom of enterprise.
@Martintintina We who(?) Things are already dire, no need to make them worse
@@saswatrath609 Renzi is an incapable idiot, he didn't know how to reform the economy despite his attempt to do so. Is for this reason that in Italy he is pretty hated.
@@saswatrath609 Renzi stab everyone in their back, just to stay on the chair of the Prime Minister one more day. No one trust him, and so no one will vote for him.
I am Italian and I agree and I will vote for the "incapable idiot" -aka Matteo Renzi- indeed.
Free markets are aldrady destroying the country with wages of 300 euros for month
I totally agree...one of the best and realistic video about Italy..
Thank you for watching 🙏
Young people usually stay longer with their parents for a few key reasons:
1)We graduate later than the rest of Europe (Italian universities are very demanding, you hardly have time for a part-time job)
2)We enter the workforce later (before you're 30 all you can find are stages, internships and ill paying jobs)
3)We are averse to debt (if you don't have a stable career yet, why waste money on rent)
4)We don't move much, we have very strong ties with our city or region and we tend to stay put (if we leave, we go abroad)
Let's be clear, WE DO WANT to get our own place, half of my friends left their parent's houses before they were 25, the other half is still there at 29. But no one shames you for that, we get it, it's not easy.
As someone from the UK doing a year abroad in Italy I can confirm that Italian universities are extremely demanding. The professors here are insane sometimes.
@@Sneakyturtle18 I don't know about volume of work, I never studied abroad. But time-wise for sure. Sometimes on the same day I had a lecture at 8am to 10am, then one at 12pm to 2pm and another at 6.30pm to 8pm. How am I supposed to do anything else with my life? How can fit a job in a day like this? 😂
@@HamelinSong that's whay all my friends left uni and went to work instead
Great video! Hope there will be more videos to come on other countries.
More videos on other countries coming soon!
I am amazed at what Italy still manufactures compared to Britain , the destruction to Italy's industrial base by the Unions has been bad but for Britain it has been total .
the Unions have nothing to do with destroying industrial base in Italy. Actually, they are the only ones fighting against delocalizations and to keep factories open...
@@carlomariamizzi8387 Ahahahahah! Ma se sovvenzionano la Polonia, che ci porta via le industrie, con i loro operai che prendono 500€ al mese? Ma che cazzo stai dicendo??!? Con te il lavaggio del cervello degli Eurocrati ha funzionato proprio bene, vedo!
I'm along with you, my British brother!! You won an important war by leaving this damn EU! I hope Italy may be the second Country to leave that living Hell, and then that the Union will disappear forever!
@@gabrielesolletico6542 You have completely misunderstood the point @Bruce Burns was making. He was referring to the Trade Unions (sindacati)
@@gabrielesolletico6542 Ciccio, guarda che "unions" significa sindacati
I just discovered your videos, I have to say, your videos are addictive! Watched 3 of them already. As a political science and international relations student in university, I’d love to see you unravel my own country Turkey as well! Subscribed!
Thank you 🙏 we have already made a video on Turkey. Please find it on our channel.
@@EconomicRaven I’m so silly, I don’t know how YT didnt recommend it to me, my bad
Perfect picture of Italy. I just disagree with the sentence "Italy has an exaggerated stereotype of mafia". We actually deserve it and nowadays it's not a problem for southern Italy only, mafia is deep-rooted in our parliament and all major institutions. We just lost that war. Greetings from Italy, the most beautiful country on earth.
I think the problem Is that abroad mafia Is seen in a wrong way
@@gaia7240 It is.
I think the best way to describe the issue to foreigners is to say that the mafia in Italy is a systemic issue that still affects our institutions, governments and political class.
It’s everywhere and it doesn’t help that abroad they see the mafia as a cool thing.
@@psq6214 yes exactly
love your work. more countries bro.
Ireland would be an interesting video, because the rich little island hasn't been rich very long and isn't great with money by the looks of things
I thought Ireland was booming?
@@beatrix1120 they are missing infrastructure to increase theyre booming.
Don't trust too much on GDP as a measure of wealth. Especially in the case of Ireland.
Ireland has one of the highest living standards. Like italy it seems unfairly caricatured
@Synth Ovine yes, same Uk , unsustainable rents, stagnant wages, high food price.
Raven tells it like it is! Bravo!
Minus the "mama's boys" part, actually most of them are forced to stay at home due to the lack of social policies, enabling them to do so...
Thanks for shedding a lot of light, anyway!👏👏👏👏
It was just about time to debunk lots of lies too!
Mamma Mia!!!
Make video on economy of turkey🇹🇷
The Raven will fly over Turkey soon!
@@sagarpanda6111 ohh yeah, Turkey, the country with a shitty currency
A good quote, which clearly shows our family-based society Heritage 😁
Mamma mia, I hope you cooked lotsa economic issues
Really good channel, just subscribed!
Thank you 🙏
Italy is also the third country in the world which holds the biggest gold (monetary) reserve, behind USA and Germany.
T.h.a.n.k.s f.o.r w.a.t.c.h.i.n.g. f.o.r m.o.r.e i.n.f.o o.r..g.u.i.d.a.n.c.e.
W.H.A.T.S.A.P.P✅
+1•2•1•3•5•8•7•4•0•8•0
Thanks! This is one of the best video-documentaries of Italy that I´ve ever seen. Very balanced and showing what Italy is despite all the negatives things said in other Europeans countries......Italy is way much more than corruption and similars.......
T.h.a.n.k.s f.o.r w.a.t.c.h.i.n.g. f.o.r m.o.r.e i.n.f.o o.r..g.u.i.d.a.n.c.e.
W.H.A.T.S.A.P.P✅••
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The amount of unpaid taxes reflects in the country spending compared to gdp, the medium old age reflects in the number of young unemplyed and amount of pensions. Adding to this the political instability given to a particular elections system (bicameralismo perfetto) and a very slow burocratic process you can see how many problems the italian economy has, it's not acceptable, italy could be a much wealthier country if it really wanted
The amount of unpaid taxes reflects in the country spending compared to gdp.
NO. Italy includes the "underground economy" in the GDP. More than 10% of GDP is undeground economy. The spending is high any way you look at it.
Good analysis. That's true that Italy has strong sectors and a lot of cards that should be played better. Talking about turism you, rightfully, spoke about major big landmark cities (Roma, Pisa, Firenze, Milano Venezia) slightly neglecting southern Italy places like Palermo, cagliari or Napoli (Matera as well) and that falls back to the poor logistic to get there. If you want to go in the norther italy you have multiple options from abroad (3 airports in Milan + 5 in ~1.5 hrs train like Torino, Genova, Venezia, Treviso and Bologna which is one of the strategic place for connecting northern and central Italy).
The south instead has fewer connection which is really uneasy for people coming from abroad to get there in a easier way and the lack/bad status of infrastructure do not help reach every hidden gems like Siracura, Polignano, Lecce as well as Palinuro or the Ionic coast line. So you are forced to get a car or spend countless hours in public transports hoping to get wherever they want.
I guess an economy made up of small, family-run enterprises, would benefit from low taxes, it would make easier to hire people and to expand their business
Well said. Our biggest tragedy is that most Italians want to start their own business but its impossible with our ridiculously high taxes and overcomplicated bureaucracy.
That will never happen taxes in italy are 70%
@@ludacorleone8563 prolly the highest in Europe...and what one gets in return? not much...
@@pulse4503 ofcourse its a country with a dead economy high taxes corruption low salaries lmao nothing will ever change ,you work 6 days in a week and get paid 900€ a month for 13 hours of work daily whats more to say?!?
@@ludacorleone8563 it's called exploitation...
Great analysis in this video.
Glad you enjoyed it 🙏
Italy's problem is its government. Work ethic and corruption is also a factor. Italy has potential but the people have to change their mentality. Their rejection of people born in Italy of color will also create a serious problem in the future.
As an Italian i agree. People here are more laid back and generally more interested in what's convenient for themselves or their family. The community isn't a priority as much as in other countries and that leads to a more relaxed life but also a lot of rampant corruption.
@@mygetawayart The young people have to be more creative. Jobs don't fall from the sky. The government should offer grants to youths who want to start their own business.
That is the most false thing I ever read in the comments, the typical stereotype of Eric and mentality when in reality Italy is the most hard worker and the most inclusive, don’t speak about something you don’t know because you have red two things
Racism is more rampant when there's poverty and lack of education, two things Italy struggle with
As long as the local population suffers economically especially, it will be hard to make an average Italian less racists
To make you understand: the percentage unemployment of immigrants and Italian is similar, which means we are ALL suffering,while in the northern European countries thee locals have a way higher employment (see Netherlands)
Great, accurate, neat description.
Thank you 🙏
@@EconomicRaven you definitely earned a sub!
I believe Gucci is a french owned brand now
I mean,lambirghini is german owned,but it still an italian industry
@@damn_jaz9895 it means that if they want they can build Lamborghinis in Germany and Gucci's clothes in France, owning is very different than working in...
Keep digging and you will probably find it's all owned by China
it depends of what you men by "italian". if you go with "an italian company is a company that pays italian taxes and has it's HQ in Italy" then a lot of big players are no more italian
Surprisingly well done.
Thank you 🙏
It all happened after the EURO, before the Lira the italian economy was one the best, we clearly suffered from the new coin.
Excellent informative and educational presentation with American accent
Please would you talk about: inflation employmentnt and tax, basic economic development for Africa, Thanks
I think Italy needs less state in every part of its economy. Usually, not always, the state decision are inefficient or strongly biased.
In fact where the state was removed everything has gone to shite, a lot of the problems are also not Italy fault historically
Free market policies? Please no, they just make rich richer and poor poorer. If you want income inequality to increase, then go on, go for it otherwise stay away from that.
Free market policies have never made a country richer. I suggest you to read the book "23 things they don't tell you about capitalism" it is written by an economist who strongly believes in capitalism as the best economic system we have, but he also shows the dark sides of it and the free market policies.
@@alien9362 true indeed my friend, a man of culture
@@reptilev8625 true the second part but privatization is not the solution and competitiveness is just the end result that brings the same outcome, for capitalism profit is all nothing else, state ownership is what we should drive to and make sure nobody take advantage of it, resources are limited and the world is for all of us so we need to work together outside of the paradox of privatization, if we give them even a single chance then they are gonna step on towards their objective as we already see with big corporations, still Italy is leader in many aspects a top net contributor to the ue and has the highest quality of life so we only need to take back what was ours and privatized or sold and take a strong stance and let us be heard so we can also denounce the wrongs we have been subjected to
Just look up the previous guy and his truth speaking
Love your channel ! Keep up the good work !
Thank you for the support 🙏
fincantieri e' un'altro esempio di eccellenza italiana.