Financial crisis and demographic crisis

Image results for demographic crisisOf Andrea Cavalleri
I mentioned it in my essay on libertarian-communism and I owe this explanation to the readers.
The London School of Economics has produced a sort of rudimentary theory that would place the blame for the financial crisis of the last decade on the decline in the birth rate.
The reasoning, very simple, it sounds like this: fewer births means that there are fewer young people paying contributions, while the number of pensioners does not decrease. Therefore the State has to go broke to pay pensions and this fact dramatically increases the public debt and induces the crisis.
This explanation, suggestive and on a superficial level quite attractive, it is absolutely wrong.
To understand this, it is enough to analyze the proposed mechanism in its entirety: if young people are too few to pay pensions to the elderly, it means that they, despite working like crazy, they are unable to bear the burden of maintaining the commitments already made.
Therefore the system would need to make the most of the work of young people in an attempt to cover pension expenditure.
On the contrary we observe a system that, in the official data largely toned down, produces over 30% of youth unemployment and that, actually, produces a percentage close to 50%.
So if the economic mechanism in place produces high youth unemployment it cannot be, and it isn't, the lack of young people led to the crisis, otherwise all existing young people would be employed. Conversely, the overabundance of young people compared to available jobs indicates that, according to our economic-financial system, young people are about double what they should be. Read More

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IMF and Italy

Of Nicola Di Cesare
IMF and Italy
Source: Appeal to the People
Based on the thinking of the managers of the International Monetary Fund, never asked by anyone (and that it has nothing to do with Italy except for the fact that our country finances it for 3,21 % of its shares), in order to revive the growth of its GDP, Italy should eliminate the fourteenth salary from all employment contracts, eliminate the thirteenth of pensions, de facto eliminate survivor's pensions and raise the rate to 27% for self-employed workers, reintroduce the IMU on the first home. The first question that a reader of average intellect should ask himself is:: but who are they and why would they want to starve millions of Italians? What they gain from it? Before delving into the merits of these statements and formulating answers to the aforementioned questions, Let's first understand what it is for and who is in command of the IMF. According to the article 1 of the Statute (establishing agreement between states) the IMF was created for: promote international monetary cooperation; facilitate expansion and international trade; promote the monetary stability of currencies and the constancy of exchange rates, avoiding competitive devaluations; provide loans, behind adequate guarantees (political and institutional interference), through the general fund resources to address balance of payments difficulties; reduce the degree of imbalance in the balance of payments of member states by preventing them from resorting to measures to devalue their currency; regulate economic growth in developing countries. Read More

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