The high taxation in Europe has crippled the economy. Those in power have not yet figured out that 70% of employment is created by the small business owner who they consider the rich and thus the enemy. Nowhere has this been more the case in Italy, Greece, and Spain. Italy is the next on the list of this Year From Political Hell come May 2018 and with youth unemployment above 30% for the past six years, the solution is not to lower taxes, but to steal from pensions to pay benefits to the youth.
In 2015 alone, some 50,000 Italians under 40 years of age migrated elsewhere to find jobs. Nearly half of them had gone to university to get degrees to no avail. All the fancy papers to frame and hang on the wall are not worth the cost of a frame. Italy and Greece are bleeding as their young talent cannot find a job and are pouring out of the country. The loss of these people is being argued is costing Italy 1% per year in economic growth. The estimate is closer to a 2% loss on GDO for Greece.
This post was published at Armstrong Economics on Oct 16, 2017.