@henryfudgeofficial: Why does the Italian economy still have incredible manufacturing despite having a Rentier black Hole? Today we’re looking at the Italian economy, its Rentier black hole in Milan, and its productive white hole in Emilia romagna and its incredible luxury manufacturers. Here’s how the land filters what production and industries survive a Rentier black hole process. It’s big it’s chunky and it’s a nice tour of Italy Andiamo! #economics #industry #macroeconomics #italy #rentierblackhole

Gareth Thomas :

It’s a weird economy. But one thing to understand is the number of small businesses Italy has. They practically run the economy. Plus a huge debt, plus a black economy of course. It’s a mess, but it works in its own way because people keep their wealth within the family.

roryrichards :

Djessi :

Italy is being cooked on tiktok recently lol

Low_Ad1072 :

You know Quasimodo predicted all this

LucaFrau5 :

Italy has millions of houses kept empty by the owners btw, making the housing crisis even worse

Henry Fudge :

So it would seem there are known survivors of the Rentier black hole process, they’re just incredibly specialised with solid margins and nearly entirely located in decent elasticity of supply housing markets. This could possibly be a targeted policy suggestion that could assist other Rentier black hole economies….alternately it could be the moment Ferrari would like to show me around maranello or brunello cucinelli would like to show me Umbria? 🤔🤔🤔🤔🤔 a man can dream

Ajibola Oki :

It works like sophisticated version of a west African economy

tanner :

monte dei paschi was saved by the government and now it has recovered quite well, it's on the process to buy another bank indeed

MLNGRLN :

A point to add is in the cities (Milan, Bologna, Firenze Roma etc) most of the rents dynamics are not only driven by the influx of labour, but also by the enormous non-regulated market of short terms rents (Airbnb) that effectively reduce the elasticity for the long term residents. The main example is the city of Venice (even if arguably is not very attractive for workers because of this)

StaceyPantene 🖤 :

Do Russia when you can

Joey :

I wanted to touch on a few things. Italy has many foreign low wage workers in the garment industry who have the expertise to make high end goods. The young adult employment rate is high and the educated ones are leaving. I’m wondering how the gravity of the rentier black hole affects areas like Sicily where they are selling houses for 1 euro. Is that a black hole in and of itself?

inthenameofsprizzolo667 :

the problem here in Italy is that wages are stagnant and not as ou say EVERYONE is paying basically minimum salary or even less (black wages as we say, partially or full not declared) all because taxes are goddamn high and every inch of productivity gets eaten by the state who gives NOTHING in return. Not economy or bullshit just Italy is broken everybody even private home sellers all want to massively profit so everything goes up enormously plus inflation plus enormous taxes plus shit government and workers just don't have the money to afford anything. Italy is dead

jo3p0 :

A video on Italy’s incredible North-South divide would be cool!

Dula Peep :

It's crazy the amount of Italians moving to Spain. Says a lot about the divergence of 2 very similar countries simply because of the economic performance

pippero :

Clusters are what MADE Italy in the second post war period. The "Italian Miracle" could have never happened if not for productive clusters, shared expertise in public spaces, and a very "family oriented" way of running these businesses. As is often the case, what destroyed Italian firms was delocalization and the substitution of "real" leadership with faceless boards of directors with a fetish for short term profit and no responsibilities towards the long term wellbeing of the company.

martazugaro🇮🇹 :

Maybe it would be interesting to study from the same perspective what happened to the cluster around Prato (Tuscany) which was one of the most important areas for clothing industry, dominated by Italian manufactures… then arrived the Chinese owned manufacturing and 99% of the Italians had to file for bankruptcy

meïamoun :

Bologna as a city does have a massive housing crisis, second only to Milan. I'd say that in absolute terms it's even worse because it lacks the variety of job opportunities that Milan does. post-COVID when all the remote students and workers started returning there was such a housing squeeze that all the renters got pushed out away from Bologna in a sort of concentric circle - lots of people were only able to find accomodation like 50km further away from Bologna than their city was. There was lots of young professionals sleeping out of their cars too in fall 2022. for the rest of Emilia Romagna in my admittedly inexpert opinion it helps that it's a bunch of medium-sized cities (around 100-200 thousand inhabitants) that are well-connected to each other and have good infrastructure and services, so commuting is relatively easy and you can either stay in the city where you lived and get to your new job or move to the city where the job is with little friction from droves of other people doing the same.

d4vi35 :

Thanks. That’s one seriously impressive posting. (And some of the comments are pretty good too.)

snabbabrillz2000 :

requesting your analysis of Sweden next!

dolces_tv :

Meantime city like Bologna to get something decent will cost you 500k

project.me :

Still they are resilient… interesting

Jordi :

could you do Spanish one?

gerharderler883 :

could you look into South Tyrol ? it has one if the most inelastic housing markets due to geography and policies , has swiss prices with Italian wages yet it has a strong industrial sector with some niche world leading companies

L uc :

Smart guy, but wrong, Milan is not simply a city, it’s an huge metropolical erea, not one simple price setting