What do you think of our poor country, where only a few are doing well? Here is the summary: 3 million unemployed; more than 10 million inactive, of which nearly 2 million are “discouraged”; 2.5 million temporary workers; nearly 2 million illegal workers; an overall tax evasion between 20 and 30 percent of GDP; an income distribution that proves that 1 percent of the population owns more than 10 percent of the total wealth — while 7 million live in poverty.
Italy, therefore, does not meet two of the “fundamental principles” of its own Constitution: “Italy is a democratic republic, founded on work” and “It is the duty of the republic to remove all economic and social obstacles which, by limiting the freedom and equality of citizens, prevent the full development of the individual and the effective participation of all workers in the political, economic and social organization of the country.” Article 53 of the Constitution is not respected either: “Everyone shall contribute to public expenditure according to their ability to pay. The tax system is based on progressive criteria.” Beyond the €75,000 income threshold, which is now the fifth and final income bracket, the income tax rate is stuck at 43 percent.
That failure to generate full employment, and an arbitrary and inequitable distribution of wealth and income, are the most obvious evils of the economic society in which we live, and these evils will continue to worsen if the current deflation process continues. John Maynard Keynes had already figured it out; he suggested a therapy in the concluding notes on the The General Theory of Employment, Interest and Money (1936). The Keynes plan is organized in three theses.