Re: Re: Spain after the Elections.

#107869
GarySFBCN
Participant

I wasn’t speaking to the economic agenda of PP but to the social agenda, especially regarding education. Benjamin Franklin wrote, “they that can give up essential liberty to obtain a little temporary safety deserve neither.” Change “safety” to “economy recovery” and that summarizes my concern.

As for the economic reforms, they don’t seem too harsh, excepting for that they are forced sacrifice on workers, while bank CEOs, etc, continue to draw their salaries when they should be in jail.

And then there was this from the NY Times:

The legislation encourages small enterprises, in particular, to hire young employees by allowing companies with a maximum of 50 workers to claim a corporate tax break of €3,000 for each new hire under the age of 30. Should the new hire have been previously jobless, he or she will still also be able to collect 25 percent of previous unemployment benefits for a limited time, while 50 percent will go to the employer.

http://www.nytimes.com/2012/02/11/business/global/spain-approves-changes-to-labor-policy.html?_r=1&emc=tnt&tntemail1=y

So this will encourage hiring young people at the expense of older workers, a shift in employment demographics, but does nothing to expand the economy. I wonder if we are going to see a business model emerge where an employer fires their long-time employees, hires young employees, gets the €3,000 tax break, gets the 50% unemployment, reduces the employee’s salary by the 25% that employee will continue to collect from unemployment, etc. etc., and then shuts down after 1 or 2 years, only to reopen as a new company?

Again, a country cannot expand their economy with austerity. There must be investment.