False statistics. True unemployment.





Italy has salaries among the lowest in Europe (except for some countries in Eastern Europe). Who knows what this depends on? Perhaps on the law of supply and demand? And when there’s not much work, in fact, the salaries go down. And so Italy of the (almost) full employment and the starvation wages, how can they be explained? The rate of unemployment was 6.1% in 2007, true or false? It depends… Statistically it’s true, in practice it’s false.

Politicians and information have to defend law number 30. The Maroni law. The law of the former Minister of Labour who only protects the Malpensa workers in his election feudal territory of Varese. The others are made precarious. The Varesotto Maroni is the alpine version of the Ceppalonic Mastella. It’s enough to look around you to see that there’s no work. To know that the number of precarious workers is going up. To understand that there’s not enough money to get to the end of the month. The 6.1% unemployment is false. Professor Gallegati explains this in his letter. But you already knew this.


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”In "Schiavi Moderni" the connection between flexibility and employment has been shown to be false. What should make politicians and economists reflect is that history shows that when a good is scarce its price goes up. Why are Italian salaries among the worst in Europe if unemployment is so low? The Italian salaries are not low because of the tax authorities, but because of work that’s not there.
Mondragone of ISFOL, explains this:
”In a dual labour market (15% of precarious workers), the presence of atypical badly paid workers contributes to the calming action of the tensions in the labour market, by supplying an army of internal reserves, in fact there’s a system of contractual submission of 15% of the workers who otherwise would have held out for demands (fist of all in terms of salaries) that instead in recent years have been extremely modest and broadly lower than those of European countries.” Anything but favouring the insertion of young people into the labour market!
Statisticulation (statistical manipulation aimed at presenting falsity as truth), is a neologism first used fifty years ago by Darrell Huff in “How to lie with statistics”. It’s a book full of examples of how to “scientifically” trick people: graphs of dubious validity, publishing half sets of figures, spoiled samples, unreliable results etc. Not knowing how to read statistics is a matter of ignorance but to alter the meaning to present false interpretations (and that is what is being done by politicians and the great noise of the aligned media) from which are derived decisions of economic policy that have an impact on our lives and the lives of our children, is irresponsible. And what’s more, we no longer want to be treated like idiots.
According to ISTAT, the unemployment rate in Italy was at 6.1% have gone down from 6.8% in 2006. A drop, as the researchers point out. But in reality it is closely connected to the increase in inactivity. Last year in fact, the number of persons looking for a job went down by 10 per cent in relation to the previous year (-167 thousand), particularly in the South, where the number of women without work has gone up continuously since 2004, and in 2007 reached 4.5 million. Perhaps it’s worth reminding readers that the rate of unemployment is measured by the relationship between the number looking for work and the number of active workers. Because it’s a division, it’s enough for the numerator to go down to make the unemployment rate go down; that’s exactly what happened in Italy in 2004. An argument brought in to support the effectiveness of the law number 30 (the Maroni law) is that since it was brought in, the rate of unemployment has gone down. With us, the quota of people who are not looking for work has gone up by much more in recent years than in the rest of Europe. According to the OECD, the relationship of those who are not looking for work and those in the work force has gone from 2% in 2001 to more than 6% in 2007, while in other European countries there has been the opposite of this tendency. It’s not surprising that there’s been an explosion in the number of those who are no longer looking, especially young people and women living in the South who find work on the black market.
Another problem that is ignored by politicians and by the mass media, is that in the first quarter of 2007, the number of unemployed in Italy was about 1,600,000: for ISFOL 900,000 of these are precarious workers, that is more than half of the unemployed in Italy are precarious workers. When a precarious worker is unemployed, no one pays their contributions for that “starvation” pension that they’ll get in a few years (at least one million precarious workers in the last 10 years have worked with contributions that will give a pension that is below the minimum). The net annual income of a “permanent” worker is on average 15 thousand € and that of a precarious worker 10 thousand €. Or you can say: 12% of the employed is atypical (but among young people the percentage goes up to 40%) and this number is going to go up as each year the relationship between “new” precarious workers and those precarious workers who get stable work (that is they get permanent jobs) is in a ratio of 2 to 1. The issue of precarious workers is destined to explode. Where are the political proposals? That is apart from abolishing article 18. Warm greetings but a bit discouraged.” Mauro Gallegati

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Posted by Beppe Grillo at 10:45 AM in | Comments (4) | Comments in Italian (translated) Post a comment | Sign up | Send to a friend | | GrilloNews | listen_it_it.gifListen | TrackBack (0) |
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VIVA ITALIA!


Thanks god there are still people like u around in Italy who have not lost the hope to clean up the horrendous mess your country finds itself in! It's a sad story. Europe needs a strong Italy!!
Keep it up and good luck!

AAW

Posted by: ANGELO A. WEBER | April 11, 2008 3:41 PM


The political solutions? Stop the flight of jobs by stopping factories' relocations, stop the outsourcing of work and abolish free-trade. That will surely gave "our friend" a fit.

Posted by: LP | April 2, 2008 4:08 AM


I'm no economic guru, (I did have a good night's sleep) but if I got your article right (the translation is god-awful) I think it analyzes the new Italian economic order based on flexibility, insecure working conditions, low wages, employment or lack of it. The analysis is Italy-centred. The flattening of Italian wages is due to cheap labor available in Third World countries. The moment owners of manufacturing plants and corporations relocated to countries with lots of cheap labor, work in Western countries, work became scarce. Its scarcity depressed wages and led to the change in the way we work. Thus, precarious working conditions, casual part-time, regular part-time, and contracts at bargain prices for labor buyers.

Posted by: LP | April 2, 2008 3:54 AM


One thing Italian journals don't talk about are freelance...

http://www.bolleblu.info/?p=114
(in Italian)

Strange, because press is full of freelance

Posted by: Gianni | April 1, 2008 6:37 PM


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