Home » Extra profits and market regulation, the government’s desperate move

Extra profits and market regulation, the government’s desperate move

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Extra profits and market regulation, the government’s desperate move

The desperate move to cut bank profits and regulate the free market

As if it wanted to get rid of a burden before going on vacation, the Government gives us an omnibus decree with botched measures and zero reform momentum. Among all, the one on the taxation of the extra profits of the banks, is a desperate move. The main Italian banks are listed on the stock exchange and, like all other listed companies, have their development and growth plans submitted to the judgment of the markets. Imagine that overnight someone decides that profits will be cut. It doesn’t matter by how much, how and for what noble reason. The message being launched is delusional, it goes beyond populism, here we are faced with a sloppiness that impacts on the freedom of enterprise. Banks certainly make profits, but they are also the transmission belt of the economic system that this government wants to support in words, therefore imposing this trap on them (without even trying to negotiate it) is only the demonstration of the lack of a minimal economic culture and of the free market (culture which, it must be said, is very scarce even in the opposition) .

This decree will probably never be implemented, but a private company that risks being hit so hard the first thing it will do will probably be to take revenge on customers. Stop. Game over. Maybe it won’t be like this, but the signal being given to the market is a further incentive not to invest in Italy.

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The Government, in order not to miss anything, has also intervened on the methods of determining airfares, trying to force the law of supply and demand taught in the basic courses of Economics.

Furthermore, the Government continues to preserve a non-competition regime for bathing establishments, in contravention of European regulations, without launching new tenders for concessions, but no problem our Papeete superhero will surely be studying an ad hoc taxation for the expensive sunbeds and deck chairs. In the meantime, however, we will pay super salaries to the brains hired for the useless bridge over the strait, and we are right to pay them as much as they deserve it, but why only them? Happy holiday.

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