1/25/2012

Recession in Italy


The government lead by the never elected Prime Minister Mr. Monti is going to make Italy to go bankrupt. 
It's quite easy: when you have a debt crisis you need, both decrease spending, and increase government revenue.
Now, to increase revenue the government can do two things: increase taxes or make the GDP to grow.
To increase the GDP the only way to do that is entice people to work..
How do you do that? Cutting taxes: more money for the employers, and finally more money for the employees. The first thing to do, should be to cut taxes on gasoline.

Increasing taxes makes higher government revenue only for the first couples of years, but in the long haul revenue will get lower and lower.
That's what Monti is doing now.

The "liberalizzazioni" Monti made up are useless for the people.
Does he really think that the people struggles to work and earn money because there aren't enough taxis, or pharmacies???
I can't believe that!