It’s all a bit annoying. Really. I have just read the Economist’s article about Spain. The article is titled “Back on its feet”.
Such a title might lead you to imagine that the article is about a triumphant return to prosperity. But no.
Instead we are told that unemployment is down to 22.5%. This is down from a peak of 26.3% back in 2013. Growth, we are told, has ‘sparkled': it rose to an annualized rate of 3.8% in the first quarter and rose again a little further in the second.
Wow.
These are the fruits of severe austerity. They are ‘the vindication of reforms’ the right of center government put in place in 2011.
Double wow.…The new propaganda is how well austerity is working. Elite chutzpah never ceases to amaze.
Sorry Economist: the story is one of disaster not triumph. It is of lost lives, lost hopes and lost dreams. And those ‘reforms’ are like the leeches of yesteryear: they are the product of economic theories that lack an understanding and empathy for real people.
Let’s all hope that our Spanish friends are tough enough to withstand the damage inflicted by the cure being thrust upon them. And let’s all hope that one day these reckless and violent cures are seen for what they are: inhuman evil.Yes, Spain is going great — in comparison with Greece.
The Radford Free Press
Spanish Triumph?
Peter Radford
7 comments:
"Elite chutzpah never ceases to amaze."
If you want to lie, you have to do it big.
Well, the unemployment rate is appalling, but 3.8% growth is actually very good if they can keep it up. The US used to have growth rates like that, back in the 50's and 60's when we had the right stuff.
"unemployment is down to 22.5%"
Ha LOL!!!!
Dan yes but who is benefiting from it. Answer = the rich.
Also there is a huge amount of resources being wasted. This is more "dead cat bounce" growth.
http://www.politico.eu/article/hundreds-feared-dead-migrant-boat-capsizes-libya-msf-italy/
2000 dead so far this year. Poverty is relative.
No big deal - austerity was effectively suspended and the economy quickly emerged from the previous austerity induced depressed levels
Same story in Portugal, btw.
A pity that the eurozone won't allow the same suspension in Greece.
What remains to be seen is how long before the EU reverts to its previous stance - apparently, further cuts to pensions are already on the agenda for Portugal, for instance.
There is no 'austerity' in Spain right now, government deficit is not low and overall debt is increasing under the conservative government. OFC the spending could be even higher (and it probably should) or taxes could be lower (this certainly should happen, and is trying to do).
But even though, and with euro at record low prices, which aid Spain a lot directly and indirectly (specially in the current context of low raw materials & energy prices), we are only managing to get rubbish employment up, mostly underemployment, poorly paid, seasonal and temporary. The current euro exchange rates help because they prevent 'leakages' to outside of the eurozone, and increase imports in the form of tourism (increasing tourism from France for example). The poor state of Greece is also a big aid to Spain, as they are direct competition for tourist industry.
And what is worse, is that the BoP has been worsening again, sicne 2014, something our export-obsessed German overlords won't like.
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