Motion for Debate: Is the Spanish Economic Crisis Worldwide?

Presented by ivi2008

The World Economy is going through highly uncertain times. The most terrible foresights are coming true in Spain, 154.058 Spaniards having lost their job in February. The unemployment rate is 14.8%, i.e. 3.481.859 unemployed people. This is the worst data in the Spain’s whole history. Is the Government putting any solution? That’s the query.

The President of Spain, Jose Luis Rodriguez Zapatero, has approved some steps to fight against unemployment. He says the crisis is worldwide therefore he expects things are going to be better when EEUU improves its economic situation. In contrast of that, businessmen believe the Government has to adopt more ambitious actions. The Unions also claim the solutions are insufficient.

Whereas the bank BBVA envisages the unemployed rate will continue to increase until 19.7% in 2010, which means between 4,1-4,5 million Spaniards without a job,  the Vice-president, Pedro Solbes, plans for only a 15,9% rise. The European Commission agrees with BBVA, the unemployment rate will increase until 19%.

The opposition leader, Mariano Rajoy, says the economic situation is regrettable. He believes it’s time to focus on economic problems, and forget other trivial issues. The fact is Spanish unemployed rate is twice the average in European Union. Although the crisis is worldwide, the unemployed rate of EEUU is only 7.2%, 2,5 million unemployed people.

Alarmed by signs other nations as Britain have announced unprecedented steps to prevent the deepest slump. Should the Spanish Government do the same? Are they avoiding the problem? Should they wait for EEUU economy recovery?

9 thoughts on “Motion for Debate: Is the Spanish Economic Crisis Worldwide?

  1. Hello.
    In my opinion, everything in economy needs at least a decade to be effective.
    I mean what we -the world- are experiencing nowadays is a consequence of Bush’s and/or Aznar’s governments, which allowed the property bubble to develop to huge limits, and granted banks permission to lend money without asking people who borrowed it a solid guaranty.
    So now banks are having trouble to recover the money they lended, because they have no way to recover that money -which comes from investors money.
    That is the real problem.
    As there is no money payback, investors have moved to other countries -such as India or China-,hence banks cannot lend money, cause they haven’t got any left.
    On the other hand, common people have a few bucks left, but they are frightened and rather not to waste and save it under their mattresses or into their socks, therefore the thing gets much worse. Shops and factories close and unemployment grows.
    I think -but that’s my own idea- governmet/s must try to encourage consumption and make new economic investments with new investors.
    To conclude, we must have in mind relative numbers when speaking about population statistics, because even though 10 is always 10, it is not the same 10 out of 100 than 10 out of 10,000.
    See you.

  2. Quaver 1969, do you really believe we must to encourage individuals to consume only for the sake of consumption?. I always thought that we have to buy something when we need it but to buy items only because someone encourages us to do it or because the economy is in freefall, looks to me incredible. I firmly believe that we have to stop, take a break in our lives and thinking, thinking about the economic systems, capitalism, socialism, comunism…. while thinking about what is we want, where we are going, what is the economic level we should permit ourselves etc, etc, in one sentence: What is the true meaning of our lives. Maybe the reason for all that we are experiencing is that we are lost and these troubles are a worldwide crisis.

  3. Hello jfelixflov7g.

    Speaking personally, I think people should think before they buy anything. Where does the goods come from, how were they made, what are they made of,..What government or whose money are we increasing by buying a product, because that’s our power, that’s the real power we all have in a consumerism society.
    However, regardless of where each one of us spend our money, there is a crisis -not worldwide, remember China for instance, we have a tendency to forget the rest of the world- that won’t get better if people don’t go shopping as they have ever been doing, that’s why I say governments should ecourage consumerism, because right now everyone is scared of spending their money and shops and factories -and so on- are closing because they are not making business.

    See you.

  4. I completely agree with Felíx as regard he says about encouraging people to buy. I think that the world is over-exploited enough to allow ourselves to do that. The Earth’s resources and commodities are limited.
    This is a worldwide crisis, of course, an overproduction crisis that demands to be faced up drastically.
    President Obama proposes to increase the public expenditure. In my opinion getting banks out of trouble is an unfair measure. Why have all to us to pay the banks’ excessive ambition for speculating? Meanwhile, Sarkozy and Merkel, French and German dignitaries respectively, are in favour of putting into action other measures as the control of tax havens.
    It seems to me they are far to be enough. Let’s come to an end definitely with the tax havens!

  5. Quaver1969, the current situation is not blame of Aznar or Bush. In economy there are cycles and after a rich period, a worse one comes. In Spain, banks are private companies. As you say, they lended money without enough guarantees, which is a big mistake, but it’s also people’s blame because they got into debt over their possibilities.
    On the other hand, the property bubble is an example how a market works. Prices are established in relation to the demand and how much people are inclined to pay. It was obvious it was going to go off.
    Quaver1969: “government must try to encourage consumption”. I agree with you in this point. People who can afford should buy because the Spanish wealthy is created mainly by the consumption. If people are afraid of the situation, things will turn into worse.
    Jfelixflov7g, people who have financial troubles don’t have time to think about the meaning of their lives. They want nifty solutions, no a beautiful speech.

  6. Dear Quaver 1969, if people don’t have time to think about the meaning of their lives, people won’t have time to be happy and they will have lost the opportunity to enjoy the unique life we have. I think people, our society, in general, believes that happiness consists of buying, having things, goods, like a car bigger than their neighbour or bigger than the previous one. We are involved in a spiral difficult to get away from.

    Yourself have explained the motion “ it’s also people’s fault because they got into debt over their possibilities”

    Also we can find happiness in the little things as strolling and talking with our friends, reading a good book in a public library, watching a spectacular sunset………..

    Well, I recommend that you think about how the business connects our personal self-esteem with buying goods with owning. That link is so strong that it’s impossible to get away from it with success with any self-esteem damages. So we are all unavoidably in debt.

  7. jfelixflov7g a person can find his happiness in little things when he can pay the mortgage, he can eat.. Money can’t give you happpiness, but the lack of money causes unhappiness. It’s life…

  8. Dear jfelixflov7g.
    I didn’t say a word about the meaning of life. I wrote about Economy and crisis.
    In this context, there is a report which has become famous these days: “El informe Leopoldo ninja”.
    In that report -which I read some months ago- , a retired man -Leopoldo Abadía- tries to analize the current crisis we are going through.
    Here you are a link for a page in which you can read that report -which I read- and watch an especial TV programme where Leopoldo and Punset talk about this matter with Andreu Buenafuente.
    The programme is entertaining, but it doesn’t give a detailed explanation. Inside that page you have a link to Leopoldo’s report and more sites on this topic. There is an option to choose the language.

  9. It is very easy to say the economic crisis is due to Bush and J.M. Aznar way of govern. I hate people who criticize the opposition to defend what they are doing, that’s the case of our president “Jose Luis Rodriguez Zapatero”. He is unable to defend his desitions without critisize things that happened 5 or 6 years ago.
    The current problem is that people are used to live in a confortable way.
    They want to go on holidays, they want to buy a new car, they want to buy a new house. All these things in a short period of time!!!
    I buy things when I need them and of course when I have money to pay them. I do not ask for money to go on holidays, if I do not have money I stay at home.
    It is what people have to learn.

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