Spain is the EU country with the highest unemployment rate for the first time since 2012 (user search)
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  Spain is the EU country with the highest unemployment rate for the first time since 2012 (search mode)
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Author Topic: Spain is the EU country with the highest unemployment rate for the first time since 2012  (Read 1054 times)
parochial boy
parochial_boy
Junior Chimp
*****
Posts: 5,107


Political Matrix
E: -8.38, S: -6.78

« on: January 13, 2021, 04:02:47 AM »

Eh, Spain fundamental problem is still what it always was - the near impossibility of defaulting on your debt, coupled to the house price collapse and an exceptionally fragile, zombie banking sector. Which means people waste their disposable income on paying back loans they will never fully pay back to banks which don't have the ability to provide credit back into the economy.

Coupled, obviously, with a huge tourism sector, which obviously, in the year people aren't travelling... Well, not so great.

I mean, the overally conclusion is that "don't put all your eggs in ones basket", "asset bubbles are bad", and that expecting the private sector to magic the economy better by itself doesn't work. And neither of those conclusions are especially friendly towards free market oriented economic ideologies.
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parochial boy
parochial_boy
Junior Chimp
*****
Posts: 5,107


Political Matrix
E: -8.38, S: -6.78

« Reply #1 on: January 13, 2021, 10:02:30 AM »

Hence why I am saying : as well as putting forward the structural reforms required from parochial boy's analysis, the Left should also look into making it easier for young people to get jobs. Right now the unions in Spain are labour aristocracy. The same phenomenon that - in other countries - held back womens rights in the workplace to reduce the supply of labour so they could bargain for more. No wonder they have a terrible image.

A big part of the problem is back in the winds of history - the latin countries developed communist inspired trade unions who saw there role to be the wholesale overturning of capitalism and obstinate, unambiguous opposition to the bosses. In the more succesful countries, there has always been a more collaborative relationship.

I'm not sure the answer is "weaken" the trade unions, at the risk of winding up with the opposite side of the story, which is the horror of the UK/US style liberal labour market, but instead to somehow change the remit in which they operate; so that you wind up with something closer to the German or Swiss model of trade unionism.

As for the liberalisation argument. Well isn't it just the case that you wind up displacing the problem from the young to the old? And in any case, France has gone through a series of liberalisation, and the issue at hand has not budged. So I am minded to think the structural issues - be it deindustrialisation, industrial and fiscal policy, the pain and failure of an economic transition - all count for more at the end of the day.
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