Spain is in a complete economic crisis. Its unemployment rate of 24.4 percent is higher than the U.S. unemployment rate during the worst of the Great Depression. And there’s no Spanish New Deal waiting around the corner to turn things around. The prolonged spell of mass unemployment is going to degrade workers’ abilities and prevent young people from gaining skills. The most capable and daring Spaniards will emigrate abroad, and Spanish firms will (rationally) fail to invest in improving the productivity of their workers.
The media has given a great deal of attention to Spain's extraordinarily high unemployment rate, which has exceeded that of the US during the Great Depression (see post). But how did Spain get from 8% unemployment in 2008 to 25% now... Read Post
The Eurozone crisis was widely anticipated by American economists. For instance, Harvard's Martin Feldstein wrote in 1997 in Foreign Affairs that, "the adverse economic effects of a single currency on unemployment and inflation woul... Read Post
At 27.2%, Spain is suffering the worst unemployment rate in modern history. Spain is tied with Greece, and is worse than the approximately 25% unemployment rate that the US saw during The Great Depression. The causes, by now, are fa... Read Post