How Spain Became the IMFâs Favourite European Economy
VloĆŸit
- Äas pĆidĂĄn 24. 04. 2024
- Use code tldrnews at the link below to get an exclusive 60% off an annual Incogni plan: incogni.com/tldrnews
Like a lot of Southern Europe, Spain is experiencing a relative economic boom as its growth forecast outpaces most major European countries. So in this video, we'll dive into the data, explain why this is happening and whether this can be sustained.
đ TikTok: / tldrnews
đŁ Discord: tldrnews.co.uk/discord
đĄ Got a Topic Suggestion? - forms.gle/mahEFmsW1yGTNEYXA
Support TLDR on Patreon: / tldrnews
Donate by PayPal: tldrnews.co.uk/funding
Our mission is to explain news and politics in an impartial, efficient, and accessible way, balancing import and interest while fostering independent thought.
TLDR is a completely independent & privately owned media company that's not afraid to tackle the issues we think are most important. The channel is run by a small group of young people, with us hoping to pass on our enthusiasm for politics to other young people. We are primarily fan sourced with most of our funding coming from donations and ad revenue. No shady corporations, no one telling us what to say. We can't wait to grow further and help more people get informed. Help support us by subscribing, engaging and sharing. Thanks!
//////////////////////
1 - www.theolivepress.es/spain-ne...
2 - www.euronews.com/business/202...
3 - www.ft.com/content/378ab955-e...
4 - www.statista.com/statistics/2...
5 - www.bloomberg.com/news/articl...
6 - www.bloomberg.com/news/articl...
7 - www.caixabankresearch.com/en/...
8 - www.neweconomybrief.net/the-d...
9 = wageindicator.org/labour-laws...
10 - www.hiringlab.org/uk/blog/202...
11 - www.euractiv.com/section/poli...
12 - www.lamoncloa.gob.es/lang/en/...
UPDATE: Since we wrote and animated this video, Spain's Prime Minister Pedro Sanchez has announced he's considering resigning, blaming a âharassment and bullying operationâ by his political opponents after a court launched a corruption investigation into his wife. This doesn't really affect or undermine the gist of the video, but at 4:25 we do describe Sanchez as a political "survivor", which now looks, well, a bit silly, even if it's still sort of true. Anyway, we hope you enjoyed the video nonetheless!
It's not bad aging, he has still survived the weirdest stuff, and everyone in both the right and left suspects he has some ace up his sleeve (such as announcing a fake resignation just to gather pity), we'll see
Far-right wing association is denouncing his wife with the only contributed evidences being fake news of small sensationalist online "newspapers". They even said that the allegations can be fake and thats for the judge to decide. Spanish right wing environment is just evil
He announced his resignation on 23rd April 3024
God bless Spain
yes it does. sanchez is a corrupt and you are supporting him
He is a survivor and all this is now theater
The growth is basically rebuilding the 2010s era economics. Growth at rock bottom is growth but nobody calls your economy strong
And the growth doesn't seem to be anything special seeing how it's only slightly above the EU average and below many other countries. This video seems like an exaggeration
its not even growth
as GDP - inflation still minus so the real growth is minus not plus
Pedro trying to clean up Mariano's mess.
so you know better than the imf , you shoudl aapply fro a job there
â@@GiorgioAltavillaMasia imf is a joke
The median salary (not average, median) is 19k âŹ/year. The cost of renting a house in big cities are between 750⏠(if you're lucky) and 1600 âŹ. So regular population is struggling with cost of living.
That doesnt matter so long as the IMF, WEF etc are happy
At least a quarter of the active population is still under minimum wage aswell. Well, this is what Europe wanted, sell us this new entrepreneurhip era as a sign of wealthy status. All being said, population might struggle to find a stable position at a job, a good wage and thus a home ownership given the prices but we're certainly not starving and we can educate ourselves, societal issues can be tackled through different perspectives, it's not everything about numbers. I care more about the lack of sovereignty on certain aspects, any population should be able to not depend on an intermediate for essential means of life because that can be used against the people to coerce them.
Here I saw qualified jobs, as content manager for a whole company, for just 17k/year. It's disgusting
@@MrBlackgobbo I mean, it shouldn't be a surprise when the employment relies hugely on enterprises with medium to small budgets whereas the large companies with bigger budgets tend to seek for employment anywhere else around the globe. It all makes sense, skilled labour now it's treated as simple labour because most of the population is educated. Knowledge is now a secular thing, having a major is no longer something 'special'. This is both good and a bad thing, the believe we are all our "own enterprise" with the scarcity of capital to land projects, you can barely be an owner xD. You have both more sources to earn a living and you're also kind of forced to secure several sources of earnings. Some people have just been storing money and going back to nature to build self-sufficient communities with the modern knowledge they have, back then, they would be seen as crazy or irrational but I see some knowledgeable and interesting personalities out there, and buying land is cheaper than buying a home, they got a point actually.
Many crossroads to take, revolted and reflexive times we live. Keeping the family close and not be an owner yourself, leaves you questioning why leaving the family and having a whole apartment for yourself is considered a goal when you already have a roof over your head and a stuffed stomage, why repeat the process your fathers already did, why not just continue their legacy? :)
There are few but still several homeless people that doesn't even have the chance to get an education nor having a roof over their heads
@@Alejandro-xh4nz Spain's second in Europe only after Greece on University graduates; I don't mean spending less on education but people suffers known "titulitis" but actually for nothing compared to richer countries; but instead to emigrate to these richer regions most keep within the spanish borders so they get lower paid jobs relating to their studies. Its also known most people studies low-paid related careers so just another factor to overall lower economy
The reason is simple: Spanish economy got hit the hardest with covid, if you compare it to growth from other countries before the pandemic to the expected this year you will see that the accumulated growth of spain is low
This. If you accumulate all growth from 2019 until 2023 Spain is one of the only 3 countries in all of Europe whose economy has decreased overall. Spain has taken a step forward only because it has previously taken 3 steps back.
So true
percentages by itself always misleading. 1pence increase over 1pence is 100%. 10pounds over 100pound only 10%. which do you prefer
@@motopeter2409 ...well yes, but that doesn't make much sense in context. An economy grows starting from its original state. If you are given 1p and with only that you're able to generate and get 1p then it has more merit than if you were given ÂŁ100 and with that you generated ÂŁ10.
@@_MrMoney That is completely false. Spain's economy in 2022 was already larger than in 2019. You just have to look at the data from eurostat.
Poland with 3% - I am nothing to you ?
Poland's economy is 3 time smaller than Spain's.
@@theparamountparamount913 Spain = 1647 billion, Poland = 842 billion.
Maths gives us 1647/842 = 1.96 So, Spain's economy is less than twice the size of Poland's.
Rooting for Poland and Spain đ
â @@theparamountparamount913yes andâŠ? A country can have a bigger economy just because it has more population. It doesnât necessarily mean it has more influence or its population is richer.
@@hanielcavalcante6048 but in this case, actually Spain is bigger, richer, and more influential than Poland. So what's the point?
Iâm Spanish and I donât think Spain is doing that great⊠Iâm not going to call it âfake newsâ because I respect that channel.
No se trata de noticias falsas. Se trata de como se manipulan las estadĂsticas.
Estas estadisticas se centran en datos muy especificos que los ciudadanos no vemos ni sentimos. Son los datos que los politicos quieren.
No es ninguna mentira, un paĂs turĂstico recuperĂĄndose del shock del COVID. Eso sĂ, si comparas el descenso con el crecimiento posterior, no salimos ganando. Pero crecer claro que crecemos naturalmente.
Well, as a young person living in Spain. I can tell you much of our hardworking youth earns 20-25k in their first job, with little prospects of an increase. 32k is seen as a good salary here. And day to day expenses are not that much cheaper than countries like Germany.
Agree with each word. Can't see any growth behind small salary's...
32k is a good salary? Damn, I'm retiring in Spain.
â@@aldodelacruz4996 Why do you think half the retired germans live in Spain?
Its considered a good salary because it is, unless you live in Mad/Bar 32k is great here
@@DCCXXV I'm just trying to put this into perspective across other salaries at other European countries :)
We are just growing more than other EU countries because we were the ones who suffered the most in 2020, our GDP fell more than 11,2% and didn't reach pre-pandemic numbers until the third trimester of *2023*, which is crazy bad compared to the rest, that not only suffered less economic and humanitarian impact but also achieved economic recovery in half of the time we took.
Do more research, please. Spain did pretty bad during the pandemic, but it was far from being the economy that was hit the worst.
Spaniards have an insane inferiority complex for two full centuries already, so of course many of them think that's the case. But if you do your research, you see that's not true.
Well, it is true that Spain felt by 11,2% (more than anybody else) but it is not true that it didnât recover its GDP level until 2023. It actually did it one year earlier by Q3-Q4 2022, by growing at a rate of 6.4 and 5.8 respectively. That is in real terms, by nominal it did even earlier. Spainâs economy is also expected to outgrow most of its European counterparts for the next years. Now we need to focus more on the quality of the growth, which it does luck balanced by trade balance, government expenditure,âŠ..,but it needs to create better jobs and create a more professional type of working environment, also engaging with venture capital. Spain created very few highly innovative companies (spin-off, startups,âŠ.) and thatâs putting a hold on its GDP.
@@RamIIRA718 the data you're giving is without adjusting to inflation, if you do, then we recovered back in October 2023. And yes, it's true, it was 11,2% not 12% my fault
â@@sxxrpientes5512 Nope, even accounting for inflation the economy reached 2019 levels by the end of 2022
Can you not lower the jingle volume?
Volume is unbalanced
I agree that the jingle is a bit loud when compared to the rest of the audio in the video
ââ@@mrkalaspuff_3866AI ass comment
I always try to time it to skip, It has become a little game with myself. But I would apriciate a timestamp or lowering the volume
@@finn_the_dog đ€Łđ€Łđ€Ł
â@@finn_the_dog When watching on any other device that isn't mobile I suggest using the "SponsorBlock for CZcams - Skip Sponsorships" extension - you can customize it because sometimes it includes things that aren't classed as the section that it skip. Idk if that makes any sense but I tried my best to explain it
Immigration of high and mid skill labor from Central and South America. They have the skill, provide a tax base to cover pensioners and they already speak the language. But their is a bonus. Cultural compatibility. These immigrants actually fit into Spanish society well. Truth is they would fit into any European country pretty well. The surrounding nations should take note and try to encourage the same immigrants into their countries.
Totally
100% and yet right wing parties can't help but be racist against these populations, they're so dumb
Agree
The influx of people from South America is also key to the economic growth, especially for a country like Spain with low a birth rate and very high life expectancy
WTF?!! South-Americans have been invading Spain (more than 4.5 mill. not taking in account underage and kids born in Spain from sa parents) and they're almost exclusively non-skill workers and for the most part not having even elemental education, most of them are directly illiterate, they're cheap and ilegal workers for 2 years when they can get residence for no reason, and then they become part of the extremely cheap "legal" unskilled workforce who works with fake contracts where the real work hours are hidden and the salary is for the most part in black money. This kind of immigration had been destroying the country economically (not for the gpd number but for the median salary and the unemployed rate) and socially for the last 15 years.
It never ceases to amaze me, how after all the evidence of the faults of GDP as a development metric and especially after all the talk about sustainability, how still we cannot start using any other measure of development than GDP itself. On topic - you forgot to mention that Spain already has one of the most decarbonized energy sectors already. Plus still a huge rate of youth unemployment, which could be well exploited in an era, when workforce is getting scarce. I wish all the best for Spain!
That's because there isn't a better alternative; if you want to calculate the size of an economy simply adding up all the stuff it has produced remains unbeatable.
What are the faults of gdp (other than SusTaInAbILiTy)
@@pascalausensi9592 He's right thought, we do need a better system, GDP numbers is a poor indicator of the wealth and well-being of its citizens, and I think we need a system that works from the ground up, basically a system that puts pressure on improving the lower and middle classes, because the way it is with GDP numbers, it only tells you how much wealth there is in a country, it tells us very little on how that wealth is distributed, how even it is and even if it's improving the quality of life.
In any case, you know it's a messed up system when a disaster like an earthquake is added as economic growth because of the rebuilding effort, because yes in the long run, that rebuilding effort could add more growth, but in the short term, it's a net loss in economic productivity, basically, that kind of thing should hurt economic growth in the short term, but the way the system works, it's added as economic growth, which is why reality and economic data is getting so distance apart from each other and why so many people are so angry in North American and Europe with voting for popularise movements, because the economic data says things are getting better but for most, the reality is that things are either stagnant or even going backwards, hence why so many vote for the likes of Trump, Brexit and the other popularise movements and that could get worse if the system doesn't start listening to the concerns of the people.
â@@Akam-pc5peit doesnt account for inequality
And thats just one thing
And its very commonly known
Maybe pick up a book amd educate yourself
Like typical right wing person i see you arnt very educated, so yea, pick up a book
There are now many explainations for why gdp isnt a good metric
PPP is way better but still not enough
Just educate yourself, for the sake of yourself
ââ@@Akam-pc5peoh and by education i mean actual books
And not q-anon conspiracy theories
Mental that economists never clocked that not letting people get paid more would reduce economic growth. If it wasnât for nepotism these guys wouldnât even exist
Lower wages help exports so if a country wants/needs to raise exports (in situations where imports or unemployment are high), not raising wages makes sense.
Countries like china are even artificially keeping wages lower than "market value" since they're so reliant on exports, but they've been doing it for so long it seems that it's hurting them more than helping.
if your an export economy low wages are good for competitiveness but if you're a consumption based economy lower wages are bad coz you're people cant afford the shit u make
@@redhidinghood9337 Except most European nations aren't export-led economies, and other factors like TFP and transaction costs play a big role in trade competitiveness.
Have you been paying attention? At 5:26, you can see Germany posting 4.4% increase in wages vs 5.2% in Germany, yet Germany is experiencing stagnation.
Higher wage growth doesn't mean economic growth. Wages CAN grow alongside GDP, but that's not a given.
economists are morons who are less useful than weather forecasters at predicting rain. I guess everyone needs to justify their university studies or whatever
The only thing that explains the reduction in Spanish public deficit is the constant and agressive increase of all sort of taxes. And yes, tourism is the reason why millions of Spaniards still eat every day.
Bingo
Also, the reduction in public debt is just lowering because of an increase in GDP, not because we have a budget surplus hahahaha
Not true: the reduction of ratio of debt/GDP is because of an faster increase in GDP than that of the debt (debt is actually increasing, but at a lower pace). And GDP is increasing fast because prices are increasing, not because of the amount of goods and services traded.
The Spanish always ate well even before TOURISM ever existed....
Arrogant silly fool.!!...English are you ?
Spain Agriculture output can feed both the SPANISH population and Half of Europe if need be.....
Spain is under going a manufa cture goods Export boom.
It's the 2nd, car manufacturer in the E.U. after Germany.
TOURISM as HUGE as It is (World N° 1) represents ONLY 12% of Spain's anual GDP....
That GIVES the Importance of Spain's Economy which is ALREADY the E.U. 4th, BIGGEST.
đđąđźđ đ
The two reasons why the Spanish economy (where I live) has grown are the rebump of tourism, which was expected, as a consequence of the pandemic, and the Next Generation EU funds (accounting for more than half of that growth of 2%). The only reason the deficit has fallen relatively to GDP is because of inflation, as the goverment has actually increased the deficit in absolute numbers. But inflation won't help anyomre in the coming years. If you remove the tourism growth (which has nothing to do with the government) and the funds from the EU, the economy has actually fallen. The rise in wages are really nice to those who do have a job, but that rise is a consequence of jobs being destroyed elsewhere, as more restrictive policies lead to a destruction of jobs. Moreover, the government has enacted no policies that have been effective at reducing the unemployment rate. A more careful and profound investigation of the causes behind Spain's "boom" should be taken, rather than giving the public an insubstancial approach that does not really enquire into the real situation of us the Spaniards.
I think Spain needs a dictator that would literally force all the people to go to work. Same for my region of southeastern Europe. There will be no real growth until people start working their ass off.
Exactly. The EU gave Spain âŹ70+ billion - so much money that Sanchez couldn't find projects to spend it all on in the first year (how often does a politician run out of pork barrels?). That money was funded by EU taxpayers in other countries who will be paying interest on the debt taken on by the EU. Most countries would show a hike in GDP if the numbers are looked at after a once in a century plague disrupted economic activity and âŹ70bn was injected into the economy from outside.
American growth is because the "Inflation Reduction Act" (among other things) authorized massive public spending on the backlog of infrastructure investment dating back decades - so for much the same reason that Spain's economy is getting a kick upwards, but Spanish taxpayers aren't going to have to pay for it in the future (unless Spain moves to being a net contributor to the EU, rather than a net beneficiary).
And the area which has shown the most growth in jobs is civil servants - Sanchez lifted the hiring freeze that was imposed post financial crash and there are now 3.5 million civil servants (17% of the workforce), all insisting on ream after ream of paper before they grant permission for something.
Perfect explanation man.
Wages don't grow if jobs are destroyed, in fact they would become less.
@@DemosthenesKar Here in Spain they take into account only employed people when calculating wages, so raising the minimum wage forcefully rises the average wage, as the jobs whose wages fall behind the wage rise disappear or become black market
Look, I'm 23, earning minimum wage in a European country other than Spain, I will be going back to spend the next year in Spain for personal reasons, but I am just going to study and do internships as there is no incentive for me to work, the salary is way to low, renting a bedroom too expensive, inflation will catch up with whatever I try to make anyway, and at least by studying I can improve my future conditions whenever I'm able to leave Spain again. I am lucky I can live with my parents, otherwise I could not afford to pay for my studies and a place to live with all of my savings, much less with what I would make working.
As sad as it makes me, Spain's economy will not be growing anytime soon, neither will politicians take care of the younger generations, as it isn't electively interesting (huge amount of pensionists in Spain), nor people that struggle to create businesses and grow the economy.
I have already seen how other European countries allow their youths to independently live, that's why I am encouraging my sister, relatives, friends and girlfriend, as well as whomever asks me about moving out, as none of the dozens of friends I met here are coming back, even though we deeply miss Spain.
By the way, we are not upper class, we all have different backgrounds, come from different places, most of us still struggle financially and have to work and study, as well as learn a foreign language, but believe me, we know we won't be going back to Spain for as long as we can avoid it.
Spain doesn't and won't have opportunities for us.
One word: Immigration
Spain has access to an immense amount of cheap overseas labor (Latin America) with many migrating to the country.
Germany has much immigration too, Austria and belgium also. I don't think it's that relevant.
@@horiabalaban7968 I see what you mean, but sadly thatâs unwanted immigration.. the system/nation doesnât value immigrant labor and only seeks to intake out of moral obligation, all the while ensuring its âcoreâ people remain prosperous. Unlike Spain which actually uses their immigration for workforce. Be it as nannyâs, hard labor, etc. More so since these are already Spanish speaking immigrants that easily âassimilateâ
@@horiabalaban7968I think youâre missing the point that these immigrants are cheap but also very easily integrated due to the cultural and language ties. Not a full explanation but an interesting point nonetheless.
doesnt make immigration good . Even if it boosts economy
@@cianmcguire5647 I'm aware of that but when you have effiecient policies, that doesn't matter that much. Portugal has "integration" potential just as much as Spain yet their economy rivals the one in Romania, not its neighbour.
You have to look at how Spain used cheap labour, not that they have it; because as I said, many countries also have it.
Spain is the EU Country with the highest unemployment rate!!! and the latest growth is due to 1) we fell much more than the rest of the EU countries during the pandemic and we still have not recovered 2) the NextGen funds from the EU
Yes but in Spain unemployment is decreasing meanwhile in many countries with low unemployment like Poland there is opposite tendency
I still don't understand why GDP is still being used as a measure of economic wellbeing.
More economic activity is more GDP.
I swear if it is per capita,I may still accept it
â@@user-uw5ps6nr8gWell, ok. Cause of the economic boom Italian GDP per capita is getting close to 40 000 dollars, while Spain now got more than 34 000 dollars of the GDP per capita nominal. For example that puts both Italy and Spain ahead of Japan and Saudi Arabia. Japan and Saudi Arabia got 33 000 dollars of the GDP per capita.
â@@user-uw5ps6nr8gGDP per capita doesn't measure wellbeing either.
In the 1920s Argentina had it good but the population had living conditions no better than its neighbors
@@blazer9547 that "economic activity" can be monopolized by the 1%. It doesn't show wealth distribution
Spanish here⊠the growth of the spanish economy is not real. The numbers are inflated based on a ultra high public spending, record braking public debt to finance everything, and a terrible job market primarily formed by temporarily workers (they are now called permanent seasonal contracts, but in reality, it is still the same). Poverty itâs at it highest since decades, weâve lost almost 30% in purchasing power in the last 15 years, taxes have gone over the roof for middle and working class, public services are starting to crumble (like public health, and public education - that should be properly called free indoctrination -, or infrastructures), pensions take over 40% of the general state budget, insecurity and criminality are getting worse, especially in big cities. Not of course to mention the housing crisis we are experiencing. Well, and that Morocco wants to invade the Canary islands but we are super worried for Ukraine.
Let me tell you something: when risk premium starts getting higher (because it will) , the 2008 crisis will be a joke. And all this acknowledgment to the Spanish economy by these institutions will just be trash.
Whenever I see all these institutions embracing manipulated numbers, either from countries or companies, it automatically comes to my mind that Lehman brothers had an âAâ credit rating the morning it collapsed.
Oh! And I forgot to mention! Our super wonderful communist minister of labor, in order to manage the highest unemployment rate in western world - and further - has come to some incredible solutions, such as: instead of creating new jobs, lets redistribute the existing ones, work a less amount of hours for the same salary, raise the minimum wage AND also set MAXIMUM wage. I will love to say it is a joke, but it is not.
Thanks for video.
Huge unemployment and lots of spanish engineers working abroad. That has not changed at all for the last 30 years.
These people could pollen businesses and create service or just do honest work
How do I know that ? Because that is happening in countries that did invite them
Like Georgia
Kazakhstan
Uzbekistan
Armenia
Azerbaijan
Like in Kazakhstan the best pizza chain is dodo pizza the owner is Russian
@@allenk6373 ''dodo pizza the owner is Russian...'' I assume this person fled Putin's Russia and isn't a Ukraine war supporting ''Z Head''
One of them here!
That has not changed at all for the last 30 years????????? Unemployment is more than half what it was some years ago! You're talking out of your ass!
@@DudyMokoWelcome to the beautiful world of calling the temporary contracts âpermanent-intermitentâ. You just work a few months and the rest of the times you are kind of âsuspendedâ, you donât work, you donât earn a salary (some of them even receive unemployement benefits), but you donât count on the stats.
Early 00âs Greece is a childish joke compared on how Spain is fooling all of you nowadays, youâll seeâŠ
Vive l'Espagne.đȘđžđȘđș
¥Viva España!
Pourquoi?
supprime le drapeau ue
Merci!
Mistake, Spain is importing a lot of Russian gas, since it has great capacity for LNG
Several factors for the Spanish growth. The enormous emigration of highly qualify expats from the Americas. Business men, investors, professionals (Many graduated in USA universities) fleeing the populists government and policies that are ruining the continent. A lot of hard working people willing to take any jobs that many Spaniards don't want to take (Unacceptable the unemployment figures when many Americans get a job as soon as they arrive). The incredible efforts that many Spanish companies are doing to increase their exports all over the world. The internet connection and digitalization of the whole country (It is the best connected internet country in the whole Europe). An incredible infrastructure (Considered by many the best in Europe), the biggest high speed train routes in all Europe and finally the output of renewable energies which is 53% of the output of the country with a promising future of 70% by 2030 (It could reach a 75%) Everybody talks about the tourism (It does help) but it is only 13% of the GDP of the country. I was the whole month of April there and in my region (Asturias) everything was booked up. Restaurants, coffee shops, bars everything it was packed. I would like to know where the people get the money to sustain that life style.
As a Spaniard I can tell you the economy is definitely not booming.
And I have huge doubts it is even growing.
i hate sanchez but minimum wage going 700 to 1050 is nice
â@ArcabuzStrife that's what create a inflation .prin too much
money = inflation.
â@@ArcabuzStrife thats not good brother
rodrigomdlh5240 Really? Raising the mĂnimum wage to keep up with inflation is not good? Thatâs conservatives for you everybody.
@@ArcabuzStrife The inflation make that "extra money" useless. Before that, inflation was almost zero, that's because it didn't have an increase in wage years before.
The map shown at 4:26 and 7:27 is wrong, I think. It seems to show the Schengen area (+Croatia, -Switzerland) when the video is discussing the EU. Norway isnât in the EU and the Republic of Ireland is. Would you mind saying where the map is from or what the logic was behind which countries were highlighted?
Probably a NATO map. But then the UK is missing too so idk man.
@@JaegerDreadful definitely not a NATO map, since in that case even more countries are missing - Turkey, Bulgaria, North Macedonia, Montenegro, Albania... I just wish Bulgaria and Romania were not left out of various EU maps so often more than 15 years after we joined.
Workers are consumers, Spain gets it.
Gotta be kidding me!? youth unemployment oon the roof, lousy salaries, enterprenneurship hell, elevated taxes, spanish economy is anything but going great. Ask spanish people not just get comfortable with the data
It ain't much but it's honest work
Wow, the timing of this video is so bad, as SĂĄnchez has sent a letter in which he says that he will be announcing whether or not he will resign on Monday, due to corruption allegations against his wife.
But didn't he got elected recently
And where's the context with spains economy?
Also Pedro Sanchez himself isn't corrupt, so I don't understand why he should resign
Also there is no evidence that his wife is either. At least none was presented to the public so far
@karankapoor2701 His government is quite unstable politically. In the last election him and his coalition partner sumar got 2 and 4 place in the elections by a small margin. So he got the votes of all regionalist and independentist parties to become president. And to do so, he had to ignore some of his campaign promises and do some deals despised by opposition and not liked by many of his supporters.
@@karankapoor2701 There is a media campaign against him.
Trickle up economics are clearly better than trickle down.
4:26 this map looks wrong....
RIP Ireland, Bulgaria and Romania. They must've left the EU the exact moment this video was released.
They put schengen map instead of eu
@@_braileanul thought so as well, but then Switzerland would have been included, so just a random map xd
â@@_braileanulThen fuck Switzerland, I guess?
â@@tadaspintveris Oh, Switzerland is in Schengen? đ€ Then *what* is this map?
Why won't someone do something about those shady forces? đš
You didn't say anything about all the money UE has given to Spain as part of the recovery fund. When that ends, the prosperity will be over.
And you don't mention that every country of EU has received money as part of the recovery fund. What is the point here? Can the rest of the countries get funds but not for Spain?
@@Antonio-fm4md Spain was one of the countries who most money received over the rest, and most of the positive numbers rely on that invested money. I'm saying that Spain isn't doing a great job by himself, but with europe's money.
â@@pedrodscom I disagree with you. Firstly because that was the target of next generation programme. Actually that money is to start the economy up again after covid.. and that's exactly what it is doing Spain. What are the rest of the countries doing with their loans and funds? Moreover half of the gdp growth of 2023 in Spain was from tourism sector and internal demand because of the employmet's peak. The next generation investment is just starting to notice in economy... So it doesnt justifie yet the high performance in my opinion.
@@Antonio-fm4md As you said, you disagree with me, and is your opinion. both are correct.
SPANISH EconĂłmic Prosperity began in the late 1950's when the Spanish EconĂłmic Miracle started.....
Ever since to these days the Spanish Economy hasn't stop GROWING from 7% in the 1960's/70's to the actual 2.5% this very year.
As things are at present due to the Ukraine War which deeped Europe into a bad EconĂłmic crisis is Spain that is PULLING the rest of the E.U.'s Economies.....
Why donât you mention nominal growth? Sure Germany shrank in real terms but they had one of the highest nominal growth rates. This does increase their purchasing power outside of Germany. Holidays imports ect.
Its all inflation, when inflation ends, thats when we will know which country really had its economy secured and growing.
Great news đȘđž love †from Latvia đ±đ»
Paldies!
A whole video dedicated to a 1.9% GDP growth. Prepandemic, the target inflation rate was 2% and even in a government finances it's debt to GDP will still grow as it's deficit is larger than it's GDP growth. Now wage growth of more than 5% is absolutely something worth considering, but take into account inflation of 3.5% or so and it's barely noticeable. Every little helps, especially in the long run but this video totally overstated the impact this really has on absolutely anything.
1.9% is much better then any major european economy
Maybe, but if you told the average Spaniard five years ago that Spain would be doing, at least short-term and at least regarding growth, better than Germany or other "modelic" countries (with a leftist government no less), you'd be called a delusional communist or something like that
1,9% is only the latest data. Before that Spain had 4% of growth. So this is 2% on top of the 4% of the previous years. Not something that you often see these days in a developed G20 country. Plus very significant salary growth. Spanish salaries reached 2000 euros net monthly now. With this growth Spanish GDP per capita remained ahead of the Slovenian and Czech and Estonian, that are also growing very nicely. And Spain is a country with 47 million people, which makes it's success even much harder.
Wages growing faster than inflation is better than Australia has done for a while.
Spainâs economy is horrendous. High unemployment, high taxes, tremendous decrease in buying power, terrible state spending , increasing (already one of the highest) debt, ponzi unsustainable pension scheme, companies leaving, high inflation, democracy disappearing, talent is fleeing the country (over 500k young educated people left last year). I live in Spain and life here gets worse every year and the country is heading towards a dictatorship.
I'm unsuscribing because you haven't adressed the rise in absolute poverty in Spain, that it was the last Euro country to reach pre-pandemic GDP and having the worst unemployment rate of the EU.
Spain = 1.9% growth
Poland is like hold my vodka with 3.2% growth
Problem is that an average Juan in Madrid makes âŹ50K a year, while an average Mateusz in Warsaw makes âŹ17~19K.
â@@m.m.7514 Nah no way, the average Juan makes around 36-38k in Madrid, not more
@@m.m.7514 We're talking about growth, not absolute numbers. The average Juan will do somewhat better in 20 years than now, if things continue the same way. The average Mateusz will do a lot better.
@@ivanbravomunoz1305 la mediana se sueldo es 19k xd
@@arnaul_de_lapras5853 eso en toda España no? Yo creo que en Madrid serå algo mås alta
Spain and Poland are setting up to become the new germany and france. I seriously hope portugal and italy will manage to follow along
New? No. But they will rival them, which is good because that means it stops being the Franco-German show and we start listening to other countries more. Germany and France are economic heavy weights partly because they have the biggest work population in Europe, so unless that or something DRASTIC changes they will stay the top 2 economies of Europe based on total GDP.
I am spanish and i think that we will become the next Greece during the next recession. Our public debt is 110% of GDP
Spain is not going to become a Germany/France anytime soon. The current growth is just compensating the hard hit we got during the pandemic as a result of the lack of tourism, our main economic sector.
No.
Itâs failly simple, it has taken 2, or almost 3 years more for Spain to recover from the COVID crysis. People is now much much poorer than before
"[...] his socialist party's been able to hang on to power for the past few years, and Spain's relatively strong economic performance is one of the big reasons behind his enduring electability."
This is so beyond wrong it enters the realm of comedy.
99% of spaniards are exactly 0% interested on economy.
The PP fought tooth and nail to not raise thr minimum wage, saying that it would kill the economy.
It turns out to be the opposite, what a surprise.
This is a typical right wing bugbear, weÂŽve heard this several times as you say, itÂŽs been said in the US, itÂŽs been said in the UK, in Germany etc, but itÂŽs never actually been proven to happen.
You are wrong, high wages expels from laboral market people who is not productive enough, and then that jobs also dissapear as employeer cannot pay lower wages. Inmigrant workers should be perjudicate but there are another ways to avoid higher salaries, at the end is the same salary.
Another manipulated by the left wing... That's pure propaganda. Spains economy rose because of the covid liquidity injections which are just recently taking effect. It's proven empirically and it was calculated that, if the covid financial injections took effect the year before (2021) Spains economy actually shrunk by 4,8%. Also spain has the highest unemployment rate in the EU which some regions like AndalucĂa with 30% unemployment. Also Spain has lost more than 500 THOUSAND companies since the left wing took over. The unemployment stats were manipulated with even 500k state apparatus not working (officially counted as: "inactive public employee's") and 500k more people with a temporary work contract, so they work just a little tiny time and the rest of the contract they don't work, but are counted as "employed". So the official statistic states that there is 11% unemployment rate but actually there is an effective unemployment rate of over 16% with tendency of more people getting unemployed. Also this happened with all the other economic statistics and those are now manipulated. Empirically proven, so it's non deniable. The government forges statistics to stay in power even forming coalitions with former official recognized terrorists
â@@adolfomartin5456the wages of waiters have improved quite significantly now earning nearly 200⏠more euros per month and bars and restaurants aren't closing lol, not only that but the raise in salary of shitty jobs have forced business to raise the entry salary of graduates by more than a third. So no, you are wrong
It is not always obvious that increasing the minimum wage is beneficial, otherwise, why stop at X%?
I'm on vacation in Andalusia. Restaurants are packed, stores doing brisk business, and the sights are as busy as ever. These are good days for Spain đȘđž đ
These are definitely not good days for Spain. Spaniards don't want to solely depend on tourism and hostelry.
What about our industry, energy sector, services or anything highly qualified?
@@pabol1000 exports were great the last two years despite pandemic and russian invasion/energy disturbances; so something is getting good afterall. Turism in Spain is king but other countries in Europe are more dependent on that and nobody is making headlines
It's such a big mistake to link gov debt with GDP. Inflation increases GDP which makes gov debt seem lower. This government has increased 68 taxes out of the 190 types of taxes we have and yet spends more than it receives, completely destroying the low and middle classes while applying high amounts of tax pressure on enterprises and nobody wants to invest here anymore. We are going to have rough times if this government keeps like this for another 7 years.
Next Generation funds. Europe is paying the party.
For me, as an spaniard, the why is doing well is by miracle. Nah now serious, those numbers are not changing our situation at all, we are still far behind
well, a lot more people that couldn't get a job now have one. unemployment rates are at its lowest since 2008. Minimum wage workers and pensioners also notice a change when they get a rise. The only thing holding back the country is housing. Thousands of empty houses in the country owned by banks and the cayetanos while most workers struggle to pay for a shared trashy apartment. that's the major problem we have and only the left is willing to do something about it
@@MarioLanzas.fuck off
Why then did not you bring all these Russians and Belorussians
That were running away from mobilisation or failed revolution
???
They could of open businesses create services or just do honest work and pay taxes
How did I know it ? Because it happening
In a countries like Georgia
Kazakhstan
Armenia
Uzbekistan
They do it theatre
I wonder if you complained when Rajoy was in charge and things were much much worse.
@@greatvideos2008 Claro, muchĂsimo, pero tu problema es que piensas en presidentes como si x o y fuera mejor, cuando el problema es toda la estructura polĂtica de este paĂs
Clearly (to me at least) Sanchez's government has done pretty well (maybe a low bar in Spanish politics) especially considering they had to deal with the massive economic hit of Covid. Clearly left leaning interventionist economic policies work. In the USA it is similar, both Biden and Sanchez accept that deregulatory trickle down laissez faire neoliberal economics do not work, they were never designed to work for ordinary people; just create ever more inequality.
Slow economic growth is mostly due to using an outdated work and school system that doesn't apply or help these days. Then it's private companies/investors and corrupted politicians not taking accountability or being held responsible for their actions. They've become too greedy and it seems rules/laws don't apply to them like it does for the average person.
I put it down to high private debt levels, and rising capital income share. Certain loopholes which allow profit shifting to tax havens don't help.
The fees to ship from the England are ridiculous. Wtf am I paying a petroleum tax for? Got the exact same model machine from another eurozone country with free shipping.
In theory an interesting analysis but in the end it is quite superfluous. Shallow mentions debt which is growing and no reference to the fact that the increase in internal demand is due to newly created jobs but almost half of them are public employees which are creating a long term burden for the economy, which in turn, won't help decreasing deficits and debt. The fact that Spain is one of the highest beneficiaries of the EU funds to recover from COVID crisis also has a huge impact, however the impact might not last since the money is not being spent in long term R&D which was the intended main purpose. Hopefully the growth is sustainable but, unles there is a change in the policies followed, really doubt it
Spain might be doing better than northern Europe at the moment, but it is ludicrous to say that spain is doing well. Wages are not increasing fast enough and people are still struggling
You have a wrong mind set about Spain's Economy....
The Spanish Economy has been Huge since RomĂĄn times.
Spain created the 1st, ever Globalisation from the 16th, Century ONWARDS....
Even the USA DOLLAR is a copy of the REAL DE A OCHO...THE SPANISH SILVER PIECES OF 8.
THUS THE DOLLAR SYMBOL WHICH SHOWS THE SPANISH ROYAL JACK ( $}.
THUS THINKING OF SPAIN'S ECONOMY AS SMALL SHOWS YOUR OUTRIGHT IGNORANCE IN THE MATTER...
@@madgringo9263 are you on drugs? We are not talking about antiquity nor the Siglo de Oro...đ And no one is bashing Spain here. Get a grip on yourself lmao
Spanish economist here. There is no strong growth in Spain. The current growth is just late recovery from the covid. It would have been very useful to show indexed level of real GDP for the last decade in Spain. It is clear that we didn't recovery the 2019 Q4 level of economic activity until 2023 Q3. More than 3,5 years with 0 growth!! Only to have a mediocre growth from that point onwards. Not to mention that tax revenue has increased 30% over that period, and so did government spending so we are still in a budget deficit!! And prices increased far more than salaries. We are in a far worse situation than our comparables, we have nothing to brag about.
What economic boom, in a town with higher employment rates previously, I have seen 80+ shops close in the last 2 years, the food prices have increased, the wages are still very low. Spain is not thriving.
4:55 finally Draghi and IMF/ECB understood : better wages, higher purchasing power. Plus... Idk but in developed economies, the engine of gdp is domestic consumption, not exports anymore. Of course you cannot suffocate that either but this is in all economic theory and they just pretended never to connect the dots since corporations liked to take that profit from employees' wages anyway. Even as it hurt the economy over all. Finally they learnt... Hopefully -_-
I am Spanish and I can see how the country has improved in many areas in the past few years. Thanks for the video guys, you are great!
The work you all do on this channel is great. You have so many areas that you cover and open up important issues that give a braoder view of the headline issues that everyone is talking about. providing a growing foundtaion of issues by thinking about them more holistically.
In Spain we are still below the salary income and percapita GDP of 2008, so it is logical growing a little bit faster...
TLDR's economic boom = slightly getting minimal progress.
They're incredibly annoying with their bombastic reporting and they're losing credibility imo
Gotta get people's attention somehow
Despite all the financial struggles i and my family faced, everything is finally falling into place! $21,000 weekly profit and riches I'll always praise the Lord..
Hello how do you make such weekly?? I'm a born Christian and sometimes I feel so down of myself because of low finance but I still believe in God.
Thanks to my co-worker(Wendy) who
suggested mrs Elizabeth Ann Graney
Wow đČ
I think I know that woman
Elizabeth Ann has really set the standard for others to follow, we love her here in the UK as she has been really helpful and changed lots of life's
In Spain we have a complex mix of energy that save us of rise of the cost of production and the energy inflation. But the present government did nothing about it. It's depend on the historical geostrategic situation of Spain. The Present Government is a terrible economic manager. And when the EU funds ends, and if the tourism sector stops growing, we will have serious problems... We need more hi tech industry. But it's true, we have great businessman and good infrastructure companies. But young people is poor and lost, old people have big salaries and immigration is changing our cities.
The two increases in minimum wages you mention were measures brought in and promoted by the Podemos party, no the PSOE party (led by Pedro SĂĄnchez).
Joint Gov't.
As an italian expat in Spain, rooting for this trend to continue! Go Sanchez!
Have we, in Spain already caught up to the pandemic GDP levels? Iâm afraid we are just catching up to other european countries
Spain caught up to pre-pandemic around last September. This is "clean growth" in that regard.
@@XanderVJ Thanks for clarifying, still it doesnât make it any better that we are slightly outperforming other european economies that have had higher growths in the past few years. TBH I am pessimistic as I havenât seen the implementation of any meaningful policy meant to address the structural problems Spain is facing. But it is always hard to tell what will happen, I hope I can come back at some point.
@@dankspain one that is good, is that they are investing more in R and D (tbf itÂŽs more a case of undoing the hideous Rajoy cuts)
Germany is basically in recession... What are you talking about
@@hellomycating Spain was the only country in the EU that in terms of GDP, on Q4 2022 had not fully recovered compared to Q4 2019. Germany was up by 4% already then while Spain was at 0%.
EU just pointed out that pensiĂłn prospect handed by the spanish goverment has a 12.000 million hole
As a spanish, the problem is much much bigger than just 12000 millions.
Our debt is 110% of GDP.
We will see what happens during the next recession.
We started 2008 crisis with 35% of debt.
4:15 Pedro Sanches is not a prime minister, he's a president.
SĂĄnchez se escribe z y tilde
As an spanish i will say that you are coping so hard...
The IMF wants higher wages now? I never thought it possible.
Spanish economic boom with number 1 rank in unemployment (official unofficial more than 3 millions) you must be crazy
Key question.. does it trickle down to the average person or does it get stuck in the same circles?
Yes, if only someone would make a video about Spain's economic performance over the past year or so, then you could watch it and find out what has happened to the Gini coefficient.
1.9 percent being an economic boom
When you're an advanced economy it's fine. If you're a backwater, it's not
Its a booming economy by the standards of a nation that doesn't control its own currency. Places like the US and China can use fiscal policy to stimulate their economy to a much larger degree than any European nation because they take up debt in their own currencies
That's advanced economy
Public deficit is higher than that in Spain, our debt is increasing.
110% of GDP.
The Med nations are quite literally economic sleeping giants, a huge tourism industry on top of that Spain and Italy also have huge engineering industry and manufacturing potential.
Southern Europe is 200 million people, population of Brazil, but with 7 trillion dollars of the GDP. Almost like 2 German economies and 3,5 times bigger than Brazilian economy. Southern Europe also got rather big gold reserves.
Not really. Southern Europe produces lots of engineers and experts, but almost all of them move to Western and Northern Euope. All that remains are pensioners, unemployed and those working in the low wage tourism sector.
@@williamduke9630Its hit or Miss, Spain is a hit or Miss, a country of enormous differences, Madrid Comunity is very, very rich, there is very high tech and there are not many places in Europe as rich as Madrid. There are other rich areas in Spain but then the rest of the country, which easily has the poorest regions in Europe, even in comparison to Eastern Europe and Balkans.
False
Poland also raises wages
VIVA ESPAĂA!
Al fin una noticia que celebrar en España sin "peros", quejas o peleas cainitas, a ver si dura...
@@armintargaryen9216 celebras ser el unico pais que pudo recuperarse bien de la pandemia y se recupere 4 años despues????
@@juanantoniogomezdelpulgarg2273 SĂ.
Pedro won't resign, but you know, Economy hasn't been spoken about in the Spanish congress for months. The opposition doesn't have any reasons to atack, so they create false cases using the judicial power. Spanish democracy is what is at stake, not it's economy (atm)
It is a well established technique. After all, VOX and PP are so squeaky clean and morally whiter than white.
It is incredible! Spaniards are always fighting against each other and blaming the other side about any possible problem. Instead of working together to improve their lovely country, they're constantly trying to destroy it... So sad! Because everyone wants to live in your country or retire there!
@@hellomycating thank you. People like the 2 above are always taking politics as soccer. Everything for their team. PSOE has been as disastrous as PP in the government and this new "Spain is growing" bullshit is just... otherworldly stupidity.
Funny how you say Spanish democracy is at stake when the government's been wiping its ass with the constitution for a while now...
Unfortunately yes. But you will be able to tackle that, I am sure. Good to hear, Spain is doing well and I am convinced they will be doing even better in future. Also with the high rentals etc., that problem will be dealt with.
I usually really like your videos, but you have a major economic mistake here.
consumption does not directly contribute to growth, as the growth is generated from producing new goods which are sold domestically or abroad.
Higher wages increase spending, which increases demand, which increases production, which is the definition of GDP growth.
A large proportion of that increased production will be in the same country. Most of the rest is in major trading partners, so the rest of the EU also benefits slightly from higher wages in Spain.
For more details, see an introductory economics textbook.
Spaniard here. The good economy is offset by rent increasing day by day and some of the most stupid politicians in Europe
It would seem like you donât know all that much about european politicians đ
Try the Balkans mate
As a fellow Spaniards: Stupid politicians seize power because of the vote of stupid people. Itâs called âDemocracyâ
Well Spain has been the only big country taking serious action against housing crisis with the ley vivienda. It didn't work as expected but it's better than nothing. All countries have allowed so far to use housing as investment asset and it's quite difficult to revert this without a huge backlash from the middle-upper class that destroyed cities by buying and renting house after house
@@carmineingaldi47 "serious action" by literally making everything worse đ
This video is incorrect⊠The fastest growing large economy in Europe in 2024 is set to be Poland (also according to the graph in 0:12). The IMF predicted GDP growth is 3.1% for Poland vs 1.9% for Spain.
Was it really necessary for China to be at the brink of collapsing it's economy for lack of internal consumption due to low wages for western economists to understand that cutting wages is not the way to solve anything?
Are these people really that slow or do they just need to earn a bit less than they do so they can start opening their eyes?
In a healthy and growing economy, wages need to be enough not only to survive but to consume. The more consumption, the more companies earn more and the more taxes are paid. Austerity is always a hard damage to a whole economy, because is a way to empoverish people and no economy could grow by empovering people, is simple maths. Concentrating wealth on few hands is the crisis and undepelopment recipe.
Good on Spain and Sanchez đ”đ±đȘđșâ„ïžđȘđž
This is a straight up lie we Spaniards aren't seeing the "boom" :)
Irritatingly, he is doggedly anti-nuclear, so he seems to want to leave it to Algeria to decide Spain's future development while belching out CO2. They could do worse, though, certainly. And probably will in short order. Spanish voters don't care about economic fundamentals, but rather about tribal allegiance.
True, but i think that is more feudal than tribal.
Warning: Every comment you read from a spanish person will be biased towards which party voted for, so read carefully.
Is that economic boom with us in the room right now?
he said relative boom
Tldr stronger labour rights and socialism is better for the economy who would have thought
Calling PSOE socialist is a big lol
Calling Social Democracy "Socialism" is such an USA or UK moment
â@@AweSean-wv3xoBut the "Frankenstein government"'s policies have been undoubtedly pro-worker and pro-regulations
âââââ@@liviuadrian1101Not really, SĂĄnchez's party is called the Socialist Party due to historical reasons (PSOE= Spanish Worker's Socialist Party) even though they are pretty centrists, so in Spanish political talk "socialism" and "socialist" usually refers to them.
Only a few hyper biased conservatives believe that PSOE is communist or something close to that, and for years even social democracy has been contested for PSOE from the left (formerly Unidas Podemos, now Sumar; IU kind of always saw themselves as an amalgamate of communist identities)
@@liviuadrian1101 Social Democracy is the ultimate centrist policy. Both extremes hate them, arguably more than they hate their opposite extreme.
Pedro Sanchezâs wife is being investigated for corruption and still doesnât want to leave. A HUGE part of the Spanish society is tired of his autocratic measures so please stop repeating that heâs doing great.
The benefit of being at the bottom is that the only way is up! Vamos EspañađȘ
Spaniard here.
Like some comments in the Italy video said, we dont feel this economic boom. Wages are still low (1500 a month is the most some people have ever earnt in high-demand sectors), rent is still expensive, food is getting more and more expensive each passing day, and dont get me started on the illegal immigration problem which cost us millions of euros each day.
Best solution for most young Spaniards is to emigrate, this economic boom means nothing.
I mean, it takes time! Southern Europe has been struggling since the eurozone crises, and this shows that things are getting better, even though living standards might not improve immediately, it's better to have economic growth than not!
And taxes are ever higher... I shudder to think what will happen when the boom is over.
It takes some time for growth to impact everyone positively
Yeah, if the economic boom only helps the top 1% it can suck my a**, and no, it doesn't trickle down, that's been debunked so many times already
I've emigrated and returned to Spain. I still get calls from abroad and salaries offered in Spain are normally competitive with other countries (specially, every call I've ever gotten from the UK offers lower wages than Spain).
wow 2% a year with high inflation. that's like 0% for real. Give us a break
Spain's growth is a statistical rebound...nothing to learn from their government that keeps harrasing private investment
Id also like to point out that had it not been for Podemos actually pulling Sanchez to the left, many of the measures that helped us out would probably not have taken place, because many of these measures were only there bc Podemos forced Sanchez to a pact only if they accepted such measures (the Coalition contract is online for anyone to see)
I agree, I think Sanchez would have preferred to do a pact with Ciudadanos.
Great news
If they are running a budget deficit does this ultimately causes a default ?
I mean the revenue is less than the expenditure
Yes theyâre shooting themselves in the foot, Italy struggles to pay the interest on all of the loans they took out to cover the deficit
Macro economics are really weird in this aspect, almost all nations can afford small budget deficits forever
As long as you keep repaying debt it doesn't matter. It's only when you start taking more and more debt and your credit rating gets worse and worse, that's when it becomes impossible to keep servicing your debtors, leading to a default.
A state with a balanced budget will ruin itself. Look at Germany as an example. We ran close to or even a budget surplus for many years of Merkel's reign for the price of massive underinvestment in infrastructure and future growth. All of that is biting us in the ass right now.
@@SomePotatothatâs the problem though, the way we operate by being in deficits creates a house of cards where you have to keep on spending to stay afloat. It seems many nations go back and forth between spending a ton of money and austerity. If countries controlled their spending a little better over the long run they wouldnât have to go in full austerity mode which is disastrous on an economy. Both time periods of overspending AND austerity are to blame in Germanyâs economy. That creates more turbulence and economic growth doesnât like turbulence.
A country that runs on 12% of unemployment does not have a strong economy...
The world is starting to realize that you can't get strong growth while pursuing austerity. You need the government to support demand wit expansionary fiscal policy
Yes! But try to explain that to neoliberal ideologists like Christian Lindner (german financial minister) who still thinks austerity is a must
That's nothing new, it's just going back to the Keynesian approach.
@@Ruzzky_Bly4t Keynes supported austerity during non-recession times. I'm arguing austerity is bad at any point in the business cycle. I find the post-Keynesian approach to be better
@@grimaffiliations3671 I'm no economist, but something tells me if governments could continue spending at a significant rate and that would benefit the economy, they would do so. Austerity is unpopular from the every-day person's perspective, as the government is usually just giving less in return while taking the same. So if a government actively scales itself back, there are probably some benefits to be earned from that. That's based more on logical reasoning than economics theory though.
â@@Ruzzky_Bly4t A lot of them can, but they've been trapped into myths perpetuated by the move toward monetarism in the 80's. They now seriously underestimate what the actual limits of the governments capacity to spend are. There can some benefits to scaling back when you have a low degree of monetary sovereignty, as we see in nations that have borrowed heavily in foreign currencies or abandoned their sovereign currencies altogether. But for nations that use their own currencies and borrow exclusively in those currencies (UK, US, Japan, Australia etc) there really isn't an excuse for austerity. These countries have full control of their interest rates and never need to worry about finding the money to pay their debts. As such, the only limit on their ability to spend is the physical capacity limits of their economies. Anytime these countries are not using fiscal policy to achieve full employment, they're missing out on tremendous amounts of growth. You can imagine how bad it is when they go the opposite route and inflict austerity on their people
Thanks for keeping us updated! I feel sympathy
and empathy for our country. low income people
are suffering to survive, and I appreciate Deborah.
You've helped my family with your advice. imagine
investing $30,000 and receiving $95,460 after 28
days of trading.
I began investing in stocks and Def earlier
this year, and it is the best choice l've ever
made. My portfolio is rounding up to almost
a million, and I have realized that when a
stock makes it to the news. Chances are
you're quite late to the party, the idea is to
get in early on blue chips before it becomes
public. There are lots of life changing
opportunities in the market, and maximize it.
What opportunities are there in the market,
and how do l profit from it?
You can make a lot of money from the
market regardless of whether it strengthens
or crashes. The key is to be well positioned.
I would really like to know how this actually
works.
All you need is a good capital, and the
service of a professional broker, with those
your investment will most certainly produce
high yields.
Iâm spanish. The normal people canât buy a Dacia Sandero.
only economies growing is eastern europe, rest are asset inflation growth followed by higher wages, stagflation, immigration does not generate growth, creates more problems social and economical.
4:27 5:00 7:25 *Why* is this entire video presenting a map of Europe that includes Norway, but excludes Romania and Bulgaria from the highlighted picture? They have *entered* the Schengen area since March first of all, even if not completely bc of sheer political blackmail from Austria - the *only* country blocking this *well-deserved* entry - but since when is that the standard for being part of 'Europe' now?
Perhaps you didn't notice dears, but Ro. and Bg. are among the fastest growing economies *in Europe* this year (0:13), as they are every year. đ U'r welcome
You meant EU not Europe, but other than that you are right. BTW they compare Spain to Germany and France that have 2x Spain GDP. So maybe also include Poland since it has 1/2 of Spains GDP đ€
@@CryptoC4T Yeah, "fastest growing economies in the EU", is the correct phrasing. I was just using their terminology of "Europe" for the EU, which I also hate tbh. đ€