Italy needs to put Cato Institute Senior Fellow Dan Mitchell’s Golden Rule into play before it is too late to prevent a collapse.
Here Mitchell explains:
Let’s now circle back to a question asked above. Can Italy be saved?
Like Mr. Farrell, I’m not optimistic. There’s no pro-market political party in Italy. And the so-called technocrats have demonstrated amazing levels of incompetence, so they’re obviously not the solution.
P.S. There is one tiny bit of semi-good news from Italy. Over the past 8 years, government spending has increased, on average, by just 1.6 percent per year. The bad news, though, is that the private sector has grown at an even slower rate, so the actual burden of government spending has increased.
Between 1996-2000, by contrast, government spending grew by 1.1 percent per year. But since the private sector was growing, the burden of government spending fell as a share of GDP.
In other words, when you satisfy Mitchell’s Golden Rule, good things happen.
P.P.S. Even though Italy is a complete mess (or perhaps because it is a complete mess), you won’t be surprised to learn that a New York Times columnist thinks America should adopt Italian-style government policies.
P.P.P.S. Then again, American statists have been urging European-type statism in the United States for decades. To see where that leads, check out these cartoons from Michael Ramirez, Glenn Foden, Eric Allie and Chip Bok.