|

Middle class with upper hand

novembre  2014 / 22 No Comments

Keep calm and carry on shopping

Ceto medio in Basilicata non soffre nessuna crisi, anzi.

This crisis is now running into it’s 7th year or so. It seems it is no longer an emergency. We are getting used to it and we are somehow readapting to the situation. Some experts define this crisis as the worst after the second World War and some analysts also foresee a further plunge until we are able to start floating up again. Unfortunately this is happening all over the world and no country nor continent is immune to it. The psychosis it caused amongst people is palpable in the air. Those who can afford refuse to spend and the banks are skeptical on lending. So we are all on alert waiting for next step to take. Obviously, those who are well-off don’t even feel a pinch of the crisis. Their glasses are not only full but overflow.

One of the factors derived from this unfortunate economic crack is the relocation of private companies and firms. This relocating is due to costs of labour, cost of raw materials, and taxations, to mention but few. The reform that Mr Renzi is carrying out these days are not yet enough to tackle the problem but somehow a few things are changing, hopefully.

Private sector are the ones facing the toughest time. The private sectors are the ones being pressurized mostly. It is incredible and unjustified that a private organization that provides hundreds of jobs is being taxed for its machinery. It is outrageous that the government should tax the machines bought by a private organization considering that the machines are meant to be used for production of end products. ‘‘Local Tax’’; this is the new name – or should I say the latest name – of the aggressive tax applied on factories’ infrastructures and the machineries. So, we should not be surprised if a company or a firm decide to relocate to another more gentle and more accommodating country such as Macedonia – where you are tax free for the first three years of your start-up and labour costs you literally peanuts thus laying off the ill-fated Italian hard workers and bread winners together with their mortgages and long list of bills to pay.

The other private sector strongly hit by this crisis are the professionals such as lawyers, engineers, architects etc who are not able to get request for jobs due to the fact that their potential clients, mostly private firms and individuals are momentarily with shallow pockets.

In this way, the gap between the middle-class and the well-offs is widening. The poor are becoming poorer and the rich, richer. Capitalism is showing itself in full colours, flexing its muscles. In Italy, sharp demarcation between these two social classes was almost invisible, some few years ago. Now the middle class is almost disappearing and the anger of this fallout is showered on the immigrants and the lower social class citizens. Of course where else would the people put the blame? And some political parities are exploiting the financial crunch to capitalize on potential votes of the increasing number of unhappy citizens. Examples of this can be seen in France with Ms Marie LePen’s success and Mr Salvini of the Lega Nord has become more popular than the prime minister of the country itself. He is able to clone himself on TV talk shows, he’s just about everywhere. If we should vote today, the survey shows him literally on top of all the other political parties and movements.

That is what is happening to the private sector. Those who are lucky enough to work in the public sector are facing a totally different and opposite tune of music. If we consider the fact that the price of most of the commodities have gone down – a sort of deflation – due to the crisis, and that the salaries of the employees of the public sector (except the ‘‘high’’ salaries which Mr Renzi had rightfully or wrongfully cut) has always been the same before and during the crisis, the public sector staff and employees are at an advantage in the purchasing power. Let me explain myself better: an employee who used to have an ‘’X’’ salary when there wasn’t crisis and costs were ‘‘normal’’ would be able to buy more of the several commodities now that the costs have gone down due to the crisis (Till these days, we have never been able to buy new and good clothes for 5Euros nor have we ever been able to buy a complete menu in a restaurant for 10Euros drinks inclusive). In other words, his or her salary has gain more value and he or she can now buy as much as he wants for less.

This in someway is to the advantage of an average Lucanian. Most of the workforce of our region are employed in the tertiary. Most of our workforce are employed at the ‘‘Regione’’ or the City Council ‘’Il comune’’ the Provincial office and other governmental offices such as Post Office, INPS, Hospital, Banks. Most Lucanians are also working at the Public Utilities Offices such as ‘‘Aquedotto Lucania, ARPAB and the long list of others. These co-citizens’ salaries are the same as before so they can now afford to spend to their advantage. The problem lies with those who are working in private sectors who are being laid off due to this never ending crisis.

Enjoy!



Comments are closed.