1 thought on “Another lost decade for Italy?”

  1. Posted 07/12/2016 at 12:43 | Permalink

    These quotes are taken from a recent OECD analysis:
    “Reducing the share of pension spending in primary spending yields sizeable growth gains with no significant adverse effect on disposable income inequality. This reduction could be achieved by an increase in the effective retirement age or by cutting the replacement rate. …Cutting public subsidies boosts growth, as public subsidies…can distort the allocation of resources and undermine competition.”
    I don’t think Italian governments are seriously trying to rein in the size of the State. Yet the best ways to do this are already known. It can’t be down to fear of getting turfed out either by election or by the force of special interest groups because every government gets turfed out of office in Italy in short order anyway. It makes no sense to me that it isn’t being tackled.

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