PDF said:
| Kasz216 said:
No. Spain's recent problems aren't related to debt. Just the construction bubble bursting.
Spain's economy has recovered fairly quickly and pretty nicely off from an unsustainable bubble...
but Spain's economic problems were big before the financial crisis ever occured, hidden by the data in some regards... and the same base issues are there.
Spain's pretty much always had a huge unemployment rate. .. espeically for younger employees.
What Spain needs is less rigid employment laws and buisnsess laws... which are unlikely to pass, because of just how stupid Franco was in pushing things the opposite way.
Unions and labor laws protect workers... but the problem is, they only protect current workers. Letting older workers stay around past their prime, and past the point of where they have more then enough money to live out their retirements.
It's hard to lay off workers, making it harder for companies in Spain to take risks, knowing that if the risks fail they're stuck with employees they can't use.
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So your in agreement that the policy of the EU (germans) that austerity is a one size fits all economic problems is not a good idea?
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Yep. It's just a good idea for most of the effected places.
Though I don't think Austerity ended up hurting anything, it didn't help.
The economy has recovered on it's own... because that's what economies do.
