Paolo Sylos Labini was one of the great Italian economists of the second half of the last century. Left-wing man whose clashes with Andreotti and Berlusconi are still remembered, as well as obviously his most famous scientific works such as the "essay on social classes" which marked a turning point in the understanding of Italy's social and economic dynamics. Over twenty years ago Sylos published an article in La Repubblica in which he argued that greater flexibility in leaving the workplace, in short, a change in the constraints of the legislation that provide for the reinstatement of the fired person, would have had positive effects on overall employment , because entrepreneurs could have hired new staff without the fear of having to keep them even in times of unfavorable economic conditions. In other words, Sylos demonstrated that greater flexibility in the labor market, also outgoing and not just incoming, would have led to an increase in jobs and therefore an overall growth of the economic system.
These are concepts that are not immediately perceived. People, and union leaders too, think that job guarantees by law actually safeguard people's jobs and wages. In reality, this only makes companies weaker, prevents them from taking advantage of favorable economic moments, hindering their growth, with the result that neither the jobs of all the companies that close, nor new opportunities are created of employment for young people. However, with a little patience and a little knowledge of the fundamental mechanisms of the economy, these are concepts that can also be explained and made to understand by everyone. Of course, if the Government sends ministers on TV who are absolutely ignorant of any knowledge, and oblivious to what the great Italian and foreign economists have said, the effect is disastrous. So it was yesterday evening in Bruno Vespa's broadcast, where Minister La Russa was unable to find anything better to say that it is a measure that in normal times the Government would not have taken (thus admitting that it is a serious and wrong measure ) but which must now be adopted because Europe is asking us for it! Not a word about the fact that countries with more flexible labor markets generally have higher growth than ours, better wages and, ultimately, a different unemployment protection system than ours and a better allocation of both financial and human.
Communicating in this way means nipping in the bud any possibility of calmly discussing an overall reform of the labor market in the wake of what sen. Pietro Ichino and also other experts on the subject. But perhaps the Italian government's letter to Europe was written in a hurry and no one had time to understand exactly what he was writing!
A letter which in fact contains many promises, which fortunately was taken for granted by the other heads of government and which therefore allows Italy to have some breathing space. However, if one looks carefully at the proposed measures, he understands that fundamental details are missing to be able to evaluate them in their exact scope. However, in general it can be noted that at least two general indications that would give the meaning of all the specific measures aimed at redesigning the Italian economic system are not well highlighted. The first is that there is too little talk about what concerns cuts in politics and bureaucracy, and the second, partly connected to the first, is that the need to change gears by aiming for a reduction in the tax reform is not strongly outlined burden on work and businesses and hitting tax evaders and assets more to quickly reduce the overall tax burden. Even the intentions to sell public assets (just 5 billion a year) are too modest, just as with regard to business incentives, there is a return to the old paraphernalia of showered subsidies which has never led to significant results. On the other hand, there is a good intention to favor the capitalization of companies which, given the scarcity of credit, is now essential to keep our companies on their feet.
One wonders why measures such as those set out in the letter, which had long been invoked not only by Confindustria, but by many independent observers, with the aim of recovering the competitiveness that our economic system has been losing for at least 15 years, have not been made in the last three years, while the global crisis raged. Of course there were and there will be many obstacles for those who will have to abandon some comfortable niches in which they had settled. But real government officials should know that politics is not the art of the possible (that is, of limiting oneself to looking at the polls and proceeding along the lines of least resistance), but "the art of making possible the things that are indispensable for the good of the whole community."
