I like to follow what is happening in Italy for several reasons. First of all, of course, it is the country where I spent a substantial part of my life. I understand what makes the Italians click and why. Although very creative, their economy is going nowhere.
They represent a great case study of how the political system of a nation can become so distorted to turn into a totally unmanageable economic system.
The little booklet by Fromm, bought years ago during one of my trips, made me think. I am not sure I agree with him when he suggests that the concept of property drives people to behave aggressively and basically ruins their life. He suggests we want to own and in the search of owning we fail to see what is exciting in life.
What triggered my interest, however, are his comments about what people seek. What do we want? What do we want to have to be happy?
One of the basic instincts is to achieve a sense of safety. To achieve a state that we can hang on to and feel safe because we are afraid of the unknown. Uncertainty makes us nervous. This is why we are concerned about new ideas. Because they change the status quo.
And we feel insecure because we lose our freedom, or so we think. What is our reaction? We ask the politicians to make the changes needed to make us feel more secure.
The Italians asked the politicians to make them feel comfortable and sheltered. And the politicians obliged. The price paid has been a massive bureaucracy sucking the lifeblood of the citizens. When one class becomes dominant, in any country, the price to be paid is stagnation. This is the price of security.
The dollar is sinking in a major way. It represents an incredible loss of purchasing power and reflects an overwhelming loss of competitiveness. Yet, the politicians are addressing our concerns and trying to make us feel secure (physically and psychologically).
No one, however, is even suggesting who and how we are going to pay for our security. Who and how is going to produce the wealth to pay the bill?
As the bureaucracy needed to provide us with what we want becomes more dominant , the country will fall in an economic gridlock. The weak dollar and the Italians have something in common.
George Dagnino, PhD
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