Spain Demand Side Policies

 There are many things to be interested in when it comes to Spain. When it comes to the question of being somewhat recent, the unemployment rate is absolutely something that we should look into. In this case, Spain very strongly mirrors the United States. The cause of their unemployment crisis was the real estate bubble popping and the subsequent fallout from that.The worst of this fall out came in 2014, when unemployment skyrocketed and reached the peak of 27.2. It since then has calmed down, but it shows that thats very difficult to navigate through and very long lasting. Additionally it shows the strength of the American economy that just us crashing ruins others. There was many problems taking place, but one of the clearest was a mismatch between the employers and the populace. Even though people were out of work, and employers said that they were having trouble finding qualified candidates for their positions. One of the other issues was that there were so many people that were there in Spain for the construction business, so when the construction business went away for a little bit they had nothing to do and we're not able to do their specialty. What I mean by this, is close to five million migrants live in the country, with most of them being therefore construction. so, if they had a job already, they did not overnight. Part of the fix for the scenario was giving the companies more leeway when it came to how they can deal with their workers. Companies were allowed to opt out of collective pay agreements as well as changing requirements to dismiss workers. These reforms worked, as they ensured that the worst of the unemployment crisis was over and ensured that we've been on a downward trend since, therefore we peaked, but additionally, a side effect was that Spanish goods are now being able to be priced more reasonably, and therefore are competitive on a global stage. 








https://www.realinstitutoelcano.org/en/analyses/the-conundrum-of-spains-recovering-economy-and-stubbornly-high-unemployment/

Comments

Post a Comment

Popular posts from this blog

Netherlands: How effective are Demand-side policies

Image
 Netherlands: Unemployment How effective are Demand- Side Policies? In 2019 the unemployment rate was 3.4%. In 2020 it was 3.8%, while in 2021 it was 4%. As shown during the pandemic the unemployment rate in the Netherlands increased. To counteract the rising unemployment rate the Netherlands enacted supply side policies. The Netherlands created a social package to increase training and retraining effort, to help lessen job- losses, paying portions of workers wages. These policies did help the Netherlands curb a major increase in unemployment, as shown in the unemployment rate during 2020. The removal of these support methods is causing a risk for a higher unemployment rate, which can be seen with the increase to 4% in 2021.  Demand- side policies could have been enacted instead of supply side policies. The OECD 2021 Economic Survey of the Netherlands, had some suggestions about using fiscal policies, but also claimed that highly expansionary and quick fiscal policy could dera...
Read more

Switzerland - Andy Walsh

Image
Switzerland has one of the highest GDP per capacity rankings in the world. Although not a member of the EU, this European country has been successful in every factor of production to some extent. The Swiss labor force is currently very strong. Boasting a very high literacy and employment rate (qualitative) and a large number of workers in their mid-twenties to late thirties (quantitative) as seen in figure 1.1.   However, despite a highly educated population, a quantitative change in the labor force will soon occur. Currently, the large group of Swiss workers nearing retirement has a strong labor force behind them to continue to generate national revenue. However, the opposite is true for the current 25-40-year-olds. As they reach the age of retirement, the amount of workers in the labor force drastically decreases, causing a dangerous economic situation for the country that will make GDP growth far more challenging. This drop in population would cause the AS/LRAS curve to shi...
Read more