What’s striking is the disconnect between GDP growth and the financial wellbeing of households. Despite a booming economy, the younger generation is facing stagnating wages, high unemployment, and crippling housing costs. To make things more complex, while retirees are enjoying significant increases in income, the youth are being left behind... a clear example of the generational divide that's been exacerbated by politics. As you pointed out, the aging electorate plays a crucial role here. Great article, Pieter.
Great debunking of the narrative. But as the article says, Spain has plenty of potentials, and there are several straightforward reforms that would greatly improve its outlook, in areas like pensions, labour law or zoning. Unfortunately politics is not helping here.
The most recent example is a reform proposed to national zoning law that would allow local councils to easily amend their zoning plans to fix errors, which would avoid much of the uncertainty that surrounds construction, ultimately making construction easier and cheaper. Despite both the main government and opposition parties supporting this reform, it has been rejected several times in Parliament, because the government does not see fit to negotiate with the opposition and the opposition prefers to inflict small defeats to the government. Does anyone have any suggestion to overcome this type of gridlock? I like the idea of "Secret Congress" by Matt Yglesias, but I don't know if it can be translated to the Spanish context.
The spanish economy is a flagrant case of an "old-age trap". The pension system is strangling economic dynamism, but politicians chose to make it worse. Housing costs are skyrocketing, but construction is practically prohibited. Immigration is pulling down productivity, but politicians spur it. All this happens because older people (a lot of voters) benefit the most from the pension system, high housing rents, and cheap labour.
Spain needs to attracts millions of Latin Americans to willingly give up half their income so the government can support a massive aging population? That's a tall order when the alternative is learning English and going somewhere with a stronger economy and more progressive tax base.
someone must have fed all those outlets the same narrative that ignores the obvious cons of the economy.
i tend to think of it as part of a greater narrative.
something along the lines of "Spain has large immigration and growing social benefits - and it seems to work for them according to everyone"
judging by the trend in which the left losing support - it might even be part of 2028 narrative of "the right got a thriving economy. how could they mess it up so badly?"
i hope i'm wrong and it's just 4 editors who were too lazy to fact check
Quality jobs are missing as usual for an economy that relies on tourism and agro-industry. Spain certainly has the most developped optical fiber network, however with the result that coastal areas are connected leaving behind the rest of the country which also explains the housing crisis . Volver as goes the title of an iconic Almodovar movie, is simply impossible. Some satellite back up for the remote sparsely populated regions would certainly help, but it would take serious public investment. For instance Luxembourg satellite provider SES has left Spain around 2020, no market, no demand.
What’s striking is the disconnect between GDP growth and the financial wellbeing of households. Despite a booming economy, the younger generation is facing stagnating wages, high unemployment, and crippling housing costs. To make things more complex, while retirees are enjoying significant increases in income, the youth are being left behind... a clear example of the generational divide that's been exacerbated by politics. As you pointed out, the aging electorate plays a crucial role here. Great article, Pieter.
Great debunking of the narrative. But as the article says, Spain has plenty of potentials, and there are several straightforward reforms that would greatly improve its outlook, in areas like pensions, labour law or zoning. Unfortunately politics is not helping here.
The most recent example is a reform proposed to national zoning law that would allow local councils to easily amend their zoning plans to fix errors, which would avoid much of the uncertainty that surrounds construction, ultimately making construction easier and cheaper. Despite both the main government and opposition parties supporting this reform, it has been rejected several times in Parliament, because the government does not see fit to negotiate with the opposition and the opposition prefers to inflict small defeats to the government. Does anyone have any suggestion to overcome this type of gridlock? I like the idea of "Secret Congress" by Matt Yglesias, but I don't know if it can be translated to the Spanish context.
The spanish economy is a flagrant case of an "old-age trap". The pension system is strangling economic dynamism, but politicians chose to make it worse. Housing costs are skyrocketing, but construction is practically prohibited. Immigration is pulling down productivity, but politicians spur it. All this happens because older people (a lot of voters) benefit the most from the pension system, high housing rents, and cheap labour.
Spain needs to attracts millions of Latin Americans to willingly give up half their income so the government can support a massive aging population? That's a tall order when the alternative is learning English and going somewhere with a stronger economy and more progressive tax base.
Thanks for kicking against the narrative.
someone must have fed all those outlets the same narrative that ignores the obvious cons of the economy.
i tend to think of it as part of a greater narrative.
something along the lines of "Spain has large immigration and growing social benefits - and it seems to work for them according to everyone"
judging by the trend in which the left losing support - it might even be part of 2028 narrative of "the right got a thriving economy. how could they mess it up so badly?"
i hope i'm wrong and it's just 4 editors who were too lazy to fact check
Socialist state promoting ficticial growing with intervencionist polices. Pan para hoy, hambre para mañana. Bread for today, hunger for tomorrow.
Death by one thousands immigration cuts.
Quality jobs are missing as usual for an economy that relies on tourism and agro-industry. Spain certainly has the most developped optical fiber network, however with the result that coastal areas are connected leaving behind the rest of the country which also explains the housing crisis . Volver as goes the title of an iconic Almodovar movie, is simply impossible. Some satellite back up for the remote sparsely populated regions would certainly help, but it would take serious public investment. For instance Luxembourg satellite provider SES has left Spain around 2020, no market, no demand.