In 2015, I came to the United States from Italy to study at Indiana University as part of an exchange program. I remember one day I was particularly surprised to discover that the State of Indiana had a AAA credit rating. I then wondered how it was possible that people in nearby Illinois, where the rating was notch above junk at best, kept voting for policies that plunged the country into financial ruin, kept moving to Indiana in droves, and all while having an example of a sustainable economy just right of the border. Being Italian, I thought I might know the answer. Illinois had entered the vicious cycle of clientelism, taxes, reckless public spending and anti-job unionization push, the same cycle that had wrecked the Italian State since at least the beginning of the seventies.
Read the entire article HERE at Mises.org
Author: Edoardo Cicchella Edoardo Cicchella is a Financial Analyst based in Washington D.C. . He obtained a Bachelor Degree in Economics from the University of Bologna (Italy), a Master in Finance from Erasmus University Rotterdam (Netherlands) and has passed all three levels of the CFA exam. He collaborates with Italian and International newspapers.