How Italy Went from Rubble to Riches After World War II

Jason Hartman
5 min readAug 30, 2022

Once the dust settled from World War II, Italy was in tatters after coming out on the losing end of this devastating conflict. As the nation was left in total ruins, it also had to put up with high unemployment and inflation. Not exactly a recipe for robust economic growth.

Like the other countries who were members of the losing Axis side, Italy would be occupied by foreigner military units. Initially, it had to rely on foreign aid programs such as the Marshall Plan to get back on its feet. Italian leaders also recognized the geopolitical importance of the Mediterranean country and made the pragmatic decision of aligning itself with the West against the Soviet Union during the Cold War.

This opened up the country to foreign investment from countries such as the United States. Other external events such as the Korean War (1950–1953) helped boost demand for metal and other manufactured products. This turned out to be a boon for Italy, especially its northern regions that had a solid industrial base. From there, Italy’s manufacturing sector would be re-invigorated.

In addition, the creation of the European Common Market, of which Italy was a founding member, facilitated even more foreign investment and allowed the country to fully tap into its export sector. Against this historical backdrop, combined with a relatively large and cheap labor pool, Italy was able to quickly get back on its feet and become one of the world’s most impressive economic recovery stories.

From 1951 to 1963, Italy enjoyed a whopping 5.8% average GDP growth rate. Similarly, between 1964 and 1973, Italy boasted a 5% average growth rate. Indeed, Italy went through a brief hiccup during the “Hot Autumn” of 1969–1970 when workers organized mass strikes in factories and industrial centers across Northern Italy demanding better working conditions and compensation.

According to some estimates, there were north of 440 hours of strikes in Northern Italy during this period. Eventually the labor disputes cooled off and the Italian economy would go back to its usual course. Though the relief was temporary. Due to the West largely backing Israel during the Yom Kippur War, a coalition of Arab petro-states, led by Saudi Arabia, launched an oil embargo. As a result of this oil embargo, countries like Italy faced acute energy problems throughout the latter half of the 1970s. Gas prices were going through the roof and many people saw their livelihoods totally rocked by this energy shock.

Oil prices eventually stabilized towards the end of the decade, though Italy could never match the meteoric growth that it experienced in the first decades after World War II. Nevertheless, Italy’s growth story in the post-World War II era remains impressive upon scrutiny.

In the present, Italy finds itself in pretty rough shape owing to high levels of debt, bad demographics, and unstable political environment. As the Italian workforce ages, its current welfare system will likely implode, and a massive socio-economic crisis could pop off. This could create a domino effect of economic collapses across the Europe Union. Pretty bleak stuff….

You see, a country’s economic fortune can change substantially in a few decades. Broader macro trends and even the capricious nature of domestic politics can drastically alter a nation’s economic fate.

That’s why it’s so important to remain as economically anti-fragile as possible. Your economic livelihood trumps all other concerns. It’s what you have full control of.
You’ve probably spent sleepless nights worrying about your current job, the present economic climate, and how your finances will look a decade from now.

Perhaps you stumbled upon the field of real estate investing and have found a way to diversify your income streams. However, you still feel like you’re stumbling in the dark when you invest in income properties.

Your cash flows aren’t as consistent…. Your property manager is nickeling and diming you to death…. Your contracts are both fleecing you and providing you with shoddy services…. In sum, it looks like your real estate portfolio is on the verge of operating at a net loss.

At one point, you’re probably second guessing yourself. You’re even considering exiting this field altogether. Countless people end up throwing in the towel after getting into the real estate investing game and not obtaining the results they desired.

But here’s the thing….these people are going overboard.

You see, they simply don’t have the Empowered Investor Pro in their life. In the Empowered Investor Pro community, we will provide you the keys to unlocking your true potential.

What most people are lacking in their real estate journey is guidance. And more importantly, they don’t have a high-value network of people that can give them the resources they need to level up.

At Empowered Investor Pro, you will have access to the following resources that will enrich your real estate investing journey and save you tons of money at the same time:

  • Monthly LIVE trainings with Jason Hartman and special guests to find out which are the most lucrative spots to invest in.
  • Constant updates and articles on what’s going in the investing world so you’re in the know about the most important developments taking place in this sector.
  • Insider information on the best linear markets to invest in so your cash flows stay on point.
  • An ability to ask informed income property investors and our team of Investment Counselors questions for advice on how best to solve your specific problems!​

Don’t try to pull a Lone Wolf strategy when you invest in income properties.

Be humble and acknowledge that you may not know everything. There are people out there with greater experience and knowledge than you.

There’s nothing wrong with that. In fact, these people are more than willing to help you out….

…But that’s only if you join their networks. So, are you ready to join the ranks of America’s most vibrant circle of income property investors?

CLICK HERE to Join our Empowered Investor Pro Community Today!

Copyright © 2022 All rights reserved.