In an anonymous article The Economist proposes to increase unemployment in Spain
Unemployment in Spain
Jul 9th 2009 | MADRID From The Economist print edition
How the burden of adjustment in Spain falls on the underprivileged
LIFE is looking up for metalworkers in Cuenca, east of Madrid. They have won a pay rise of 3% in real terms. In a country with falling GDP and unemployment of 18%, that is no small feat. Yet it is not unusual. Spain’s centralised wage-bargaining system awarded real pay rises of 3.5% in May, the highest in a dozen years. Spaniards in work might be forgiven for concluding that recession is beneficial.
This two-tier labour market divides workers into a privileged group cocooned from the reality of recession and the disadvantaged on temporary contracts, in unemployment or in illegal jobs. Employers do not invest in training short-term workers and are wary of hiring on permanent contracts. At any hint of a slowdown they shed the short-timers. “That the crisis has hit Spanish employment disproportionately is due to the catastrophic way the labour market works,” argues Luis Garicano of the London School of Economics.
The fate of Spanish workers is a story of contrasts. Some have never had it so good; others have never had it so bad. Spain has the European Union’s highest unemployment and one of its less generous welfare systems. It has shed 1.2m jobs in a year. It will soon have as many jobless as Italy and France combined. Pay rises for some have led employers to cut the jobs of others. Two-thirds of workers have armour-clad permanent contracts. But the rest are on short-term deals. They are the people now on the dole.
Professor Garicano is one of a group of 100 economists who have called on the Socialist prime minister, José Luis Rodríguez Zapatero, to set about labour-market reforms. The calls have fallen on deaf ears. Talks between unions and employers stalled when the bosses proposed to cut the cost of laying off privileged workers. The government retorted that this was a “red line” it would not cross. Mr Zapatero will not be taking on the unions.
So you see. According to the economists of the Right (are there any other kind?) the way to solve the problem of unemployment in Spain is to fire the workers without compensation. Giving that unemployment is around 20%, and according to «Prof. Garicano the labour market in Spain works in a catastrophic way,» if its expensive and difficult now to fire a worker, (and still they fire them in the hundreds of thousands) if it were cheap and easy the owners would fire a million more next week.
And topple the government of Zapatero.
Prof. Garicano has solved his personal unemployment problem by moving away from Spain and working at the LSE, that bastion of Thatcherite thinking that must have some responsability IN THE DESTRUCTION OF THE UNITED KINGDOM THAT I WITNESS DAILY. Most actors in this tragedy have graduated there, it must be the fault of the London School of Economics, so praised by the likes of the son of Vargas Llosa who graduated there and just a few nonths ago was singing the praises of that bunch of clowns, his schoolmates and their computer models.
Of course all Spanish workers are not the same in Spain. We are not a communist country, there are differences and some workers have better job security than others. These economists who have brought the world to the brink of destruction want to transform all Spanish workers into serfs without any rights that you can fire at will. Worse than at the time of Franco, that’s their idea!
So, Prof. Garicano, keep your unwelcome and frankly stupid and bad intentioned advice to yourself and the Opus Dei, and advise the British students on how to destroy their own country.
The articles in The Economist are (mostly) unsigned for the good reason that they are mistaken so often, and their advice smacks so much of fascism that it would be for the authors their Social Death if they could be identified. It is the foreigners who get named and shamed to the world as the voice of social reaction.
I’d advise the staff of The Economist to start singing the praise of Sarah Palin, the New Hitler. Anonimously, of course.
☼ PS. August, 2012. As you can see in Spain they followed the advice of the Garicanos and the Economist, with the result that we are now in deep shit and sinking lower and lower, we are as of this date the laughing stock of the world.