Real Italian public spending in the last 20 years

Since we often talk about excessive and ever-increasing public spending, the need for cuts, and ever-pressing austerity, we want to give you some insight into how things actually work, using a nice graph of Sovereign channelwhich is happy to provide some good treatment of real data and give some food for thought.

In fact, until the pandemic, which shuffled the cards a bit and changed many models, public spending had been falling relative to GDP since 2009 and was practically stable in terms of real spending.

There has been a sharp decline even before the Monti government, starting with the last Berlusconi government, in real terms in 2022.

If we analyze Increase in domestic product Compared to public spending starting in 2006, perhaps the only government that for a short time managed to achieve a slight increase in GDP while reducing public spending was the government of Berlusconi-Tremonti, but in reality, the growth of 2010-2011 was not a recovery from the fall of the financial crisis in 2009

As for the rest, Monty's public spending cuts pushed us into recession, and the modest growth in subsequent public spending was accompanied by weak economic growth. The economy itself is not growing, and this should make us think a lot about the function of spending itself and what would really be necessary for the real economy. Then came the pandemic, and things changed a little, but not heads.