Thread by @gbponz

#Italy DECLARES, according to #Eurostat principles, an higher GDP etc.
Yet, as @michaelxpettis asserted today about #China;
1. Most of it is "directed" by the government;
2. "Government" GDP measures activity, not value added, and it's usually one for one with debt. (/)

https://twitter.com/xruiztru/status/1594325268163960833

As such, just google "Italian GDP and Debt to GDP" , and see what happens; #Italy has lost two decades vs. The rest of the #EU , in a "the tortoise and the SLOWER tortoise" parody of "the Tortoise and the hare". (/)

In fact, it could be construed that #Italy's business model is this: compressing sector growth from future years into the present one forcibly ( see the 110% house energy efficiency fiscal incentive), coupled with a "private success must be punished" bent.(/)

See the "tax on extraordinary energy profit". Reintroduced by #Draghi (bad), and reinforced by #Meloni (worse). I say "worse" since she won on a yearning for change, and that tax is stupid. Popular, but stupid.
(/)

So that comparison, while technically true on public sector GAAP, is IMHO misleading: those country have generally a lower debt to GDP, a lower public spending to GDP, AND lower unit costs on industrial production. In a "reshoring" decade, who will be better?(/)

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