Tuesday 16 March 2010

The lost decade

A picture is worth a thousand words.
As with every saying, this is not always true, but in this case it is true more often than not.

Saturday morning, while reading on a train to London, my wife spotted a wonderful picture on an article titled The Information: Growth lost in the recession on a tiny magazine sold together the weekend edition of the Financial Times, and she told me about that.

The first time I got to truly look at that, it was already Sunday evening, on a train from London.

The picture is truly amazing, it did open a whole new dimension to my understanding of the effects of the economic recession we had to live through in the past couple of years.

Building on that, I decided to give a shot at that very same issue myself, so I got the data of the past 10 years of GDP growth (sic!) from Eurostat, I analyzed them to create a graph myself, this time divided on yearly periods, and in a few minutes I found myself looking at the shocking results:

The lost decade

Every single country in the Eurostat set, bar Poland, has lost at least 2 years of GDP growth.
Of all the countries, the Republic of Italy was the most affected one, it lost 9 years of growth during the recession, it is as the Italian taxpaying citizens by some dark magic have been working 10 years to find themselves just where they were 10 years ago.

Basically, every business related law enacted by the last few Italian governments, every sacrifice requested to the Italian citizens by the Italian ruling class, especially to the younger generation who started to work after 1999, every promise of a future reward in exchange of a greater job flexibility and a lesser job security, everything went up in smoke.

Seven years after its enactment, what are the final effects on the so-called Biagi reform on the Italian economic growth?

Zero, nihil, nothing.

There is nothing left to show.

No comments: