The French and the Italians do not understand that there cannot be an increase in purchasing power in France and Italy now

The French are demonstrating to obtain an increase in their purchasing power, while the Italian government is adopting a larger fiscal deficit to boost household purchasing power. Bu t unfortunately it is not possible to increase purchasing power in France and Italy now , because : The low level of labour force skills, the low level of modernisation of capital and deindustrialisation are resulting in low productivity gains (France) or no productivity gains (Italy). It is impossible for real wages to constantly increase faster than productivity; The cost competitiveness of France and Italy is poor, given both countries ’ level of product sophistication, and both countries are losing market share; so it would even be necessary for nominal wages to increase little, i.e. for there to be wage moderation, to restore competitiveness.