Daniel Di Martino: Italy’s Taxes Drive Its Economy Underground

Milton Friedman used to say that “for many years Italy did well because of the black market.” 

Italy grew rapidly over the 20th century, and its black market was part of an important economic recovery after World War II. Italians made everything from low-cost toys to high-quality cars, from world-renowned coffee to thousands of movies.  

However, in 2018, Italy is one of only two European countries where GDP per capita has not recovered from the financial crisis. Italy has an unemployment rate of 11 percent and a youth unemployment rate of about 35 percent. In addition, Italians have the second-largest government debt in the world relative to their GDP.

Daniel Di Martino: Socialism, Not Corruption, to Blame for Venezuela’s Oil Production Drop

Venezuela’s tragic famine and refugee crisis taking place despite the largest proven reserves of oil on the planet. Watching it play out on television is one thing. Living through the ways socialism pushes the middle class to poverty and the poor to starvation is another experience entirely.

Although I was fortunate enough to leave Venezuela almost two years ago to come to the United States, not everyone has the chance to leave. Venezuela has become the latest experiment of socialism, and like all those before, it has resulted in famine and mass exodus.

However, some news outlets wrongly state that Venezuela’s crisis is due to lower oil prices and that its oil production has collapsed due to mismanagement and corruption, claiming socialist policies are not to blame. However, what these analysts fail to understand is that widespread mismanagement and corruption of a whole industry and country are only possible within socialism. Only an economy that lacks free prices and competition, with high levels of government involvement and tight regulations can harbor government mismanagement and corruption that lead to shortages and hyperinflation.