Edison Foundation economist and vice president: The United States shows that only public investment can overcome the epidemic. Europe is on alert as the recovery program moves in the same direction as the United States
Joe Biden Twins. After the $ 1.9 trillion maxi-project launched in February, the second phase was launched in February if the first phase could be more courageous: the second project, worth $ 3 trillion, is entirely or almost entirely dedicated to infrastructure. In short, pure public investments. So, with subsidies, business assistance and tax breaks ($ 4,400 per person for less than $ 75,000, and unemployment benefits, family payments, tax loans but increased taxes on large corporations and patrimony), the House and Senate approval is now pushing for construction sites.
There is a bit inside. Roads, bridges, dams and a lot of technology. DNA is the sealed new contract Franklin Delano Roosevelt, An investment program that lifted the American nation out of the darkness of the Great Depression. Faced with such a limit, one wonders if such a move could be repeated on an Italian scale. Did Rome Biden do less with the 209 billion recovery plan? Formiche.net Talked about it Marco Fortis, Economist and vice president of the Edison Foundation.
Fortis, a huge infrastructure project is taking shape in the United States. Public investment in strength. Can such an effort be reflected in Italy?
Really yes. Because Italy with repurchase funds is already plugged into the context of public investment, to a lesser extent than the United States of course, but this is the opinion. We are in a European environment, and today the economy is predicted to restart, with the United States doing something in parallel. I find that there are many similarities between the rescue fund and Biden’s plan.
So, if it is a public investment, are there any similarities between the EU and the US?
The Western world has realized that it is impossible to get out of the epidemic without public investment. Investment policy requires effort, and this effort is understood. Then thanks to investments, wealth can be more evenly distributed, eliminating polarities. Biden is not only resuming growth right now, but above all looking for new benefits for the American people without distinction. I hope the project goes in this direction.
However, do you not think that flooding the market with stimuli and cash flow can somehow create distortions? Is there no risk to the doping market?
It depends, you have to make some differences. An account only for the purchase of cash injection or securities, an account for public investments, i.e. public expenditure. In this case, there may be an increase in the deficit, rather than a deviation, yes. But the two are very different. Here, in the case of Fiden’s plan, there will be a resurgence in production investment, there will be no distortions, and if there is any, public funds will not be affected even if the deficit can be offset by growth.
Let’s talk about Fortis, Italy. Economy Minister Daniel Franco said by the end of 2021 our economy will return to normal and public aid to the economy will be reduced. Too soon, or too late?
It is reasonable and logical to assume that if we are confident that our economy will recover soon, these AIDSs, which cannot last forever, will be reduced. Prime Minister Drake was very clear at the press conference that there are areas we need to continue to help, such as tourism. In short, the subfields are correct until recovery is available. But we can’t think of helping forever.
Well, what do we do with closures? Italy in the Red Zone and Germany re-locked …
Germany is in a locked position because it found the eastern border and did not have a hard lock last year, and now pays a lot for it. Italy, if you will allow me, is very virtuous. I will prove it: we lost a lot of GDP last year due to severe restrictions. But by 2022, it will not be far from China, according to the OECD. Doesn’t that seem like enough?