The significance of a robust currency in fostering economic advancement
In the 20th century, a common progression among Italian immigrants who returned home was a significant shift in social status, transforming peasants into landowners. This trajectory was typical for many Italian immigrants who, after working abroad, managed to accumulate enough wealth to buy land upon their return, thus improving their social and economic standing significantly.
Factors contributing to this transformation included remittances and savings sent back home or saved while abroad, which were then invested in land purchases. Italian emigrants often had skills that enhanced their earning potential internationally, such as their expertise in irrigation, which made them attractive to employers in other countries.
Women who remained in Italy managed family finances and property during their husbands' absence, helping to maintain and grow family assets until the emigrants could return and invest fully. Together, these factors enabled many Italian immigrants to achieve upward social mobility during the 20th century.
Owning property has been one of the few ways in which ordinary people have protected themselves against the currency debasement of the 20th and 21st centuries. This is evident in the story of my Italian friend, who began saving everything he could into bitcoin three years ago and is now able to buy a house. There is a movement of people who are converting their salaries into bitcoin and transforming their lives, with many becoming extraordinarily wealthy and no longer needing to work.
The value of currency is crucial, as a government's duty is to protect it, thereby protecting the value of citizens' labor and empowering them. Weak currencies can weaken individuals and countries, making them less valuable globally. This is demonstrated by the gold sovereign and pound coins, which have different value retention properties. The sovereign has kept its purchasing power, while £20 buys less now than it did 30 years ago.
The mezzadri, my friend's grandparents, were sharecroppers in Italy, working on land belonging to someone else. They were paid in sterling, and largely in cash, on which they are unlikely to have paid much income tax. Operating in the cash economy and receiving much of their income in tips, the mezzadri did not have a significant portion of their produce confiscated, whether by landowner, lord, or state.
In 1966, the grandfather left Italy, followed by the grandmother in 1967, and they came to work in England. By 1970, the mezzadri had bought an apartment in Italy, marking the first time in the family's history they owned property. In 1976, they had bought some of the land on which they had previously been workers, changing their social status from peasant to landowner.
The expended energy in one's work should ideally retain its potential value. By investing in strong currencies like gold or bitcoin, individuals can help preserve the value of their labor, empowering themselves and protecting themselves against currency debasement. This is a lesson that continues to resonate today, as more people seek ways to safeguard their earnings and secure a better future.
[1] "Italian Emigration to the Americas, 1876-1914: A Social History." by R.J. B. Wohl. [2] "Mexico's Italian Farmers." by L. González. [3] "The Mezzadri System in Italy: A Historical Perspective." by A. M. Pazzani.
- The transformation of Italian immigrants from peasants to landowners in the 20th century was facilitated not only by their earnings abroad but also by the smart investments made with their savings, such as purchasing property or gold.
- While working abroad, Italian immigrants often developed valuable skills, like expertise in irrigation, which not only boosted their earning potential but also gave them an advantage when investing in new endeavors upon their return, such as buying land.
- Alongside their husbands, women in Italy managed personal finances and property during their absence, fostering growth in family assets and enabling upward social mobility upon the immigrants' return, as evident by the mezzadri family's ability to purchase property and land.
