For The Wall Street Journal, the unemployment is the chronic illness of Spain

The Wall Street Journal, as they were already doing The Economist and Bloomberg last week, he dedicates an article to revise the situation of Spain with adjectives few benevolentes. The head property of Rupert Murdoch affirms that the unemployment is a “chronic illness” in the country and that the Spanish have got accustomed to her.

Irwin Stelzer, the author of the article and recognized economist and member of Hudson Institute, identifies the explosion of the real estate bubble, which “has struck Spain with more force than to no other European country“, like the origin of the current situation for which now the Spanish active population crosses.

Also, it is remembered that the unemployment valuation is located in 19,3 % - in accordance with the last information published by the office of statistics community Eurostat - and heads for 20 %. Also, according to the expert, everything points that the tendency does not go revertir to the rise in for the time being for several motives.

To start, Seltzer defends the idea of that the Spanish “have accustomed” to coexist with very high unemployment valuations: between 1884 and 1998 it was located between 16 % and 23 %, and in the last 30 years it has not ever gone down 9 %. For this motive, he affirms that the Spanish have the impression of which it is a question of a “natural condition” and quotes Jaime García-Legaz, General Secretary of Faes, who affirms that “many people have the impression of which the unemployment is like a Spanish pandemic”.

Also he thinks that another factor that it helps to that in Spain the excessive employment destruction is accepted with “relative calmness” is the system of social services. The high subsidies that Spanish receive idle, “between 80 and 90 % of the last salaries for two years”, it does that they push “almost any job vacancy” back.

In this point, the economist affects on a new problem on which echo has already been done from diverse institutions. All the more time a person remains in the lists of the INEM, less attractive it will be for the company that, also, she will turn out to be braked by the high cost that of the dismissal in Spain, which the author of the article places between 30 and 45 days for worn out year - those that correspond for the indefinite contracts-.

Finally, Seltzer points at the submerged economy, which contributes income extra and brakes even more the Spanish without work to leave his condition of stopped.

Image CC of DoctorWho

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