The Economy of Spain
the Promblem
For hundreds of years, economic bubbles have been formed by civilizations around the world. In the early years of the 21st century, there was a network bubble that collapsed, and people did not know how to invest their money in stock market. A solution was presented. They realised that the safest place to invest your money was the real estate market. Many people bought homes quickly and it is sad that the government has promoted this new bubble. Many people got mortgages they could not afford. Meanwhile, many people in Spain invested in American morgages. In 2008, many people in the U.S. desesertaron on their mortgages. As for the Spaniards, they lost all of their money they invested. This led to the loss of pension funds. People could no longer buy from companies, and in return, companies lost huge profits and needed fire employees. From there it was a vicious circle
The lack of participation of ordinary citizens of Spaniards in their
govenment is one of the reasons that the Spaniards can not leave their economic crises. In a socialist system, the government does a lot more than a capitalistic government like that of the USA. Thier government makes all decisions but it is malfunctioning and corrupt, no one will change that. People in large numbers need to fix the problem and ensure that their voices are heard.
Spain has a big problem with its dependence on oil from other countries. they do not invest in renewable energy in their own country. Without the means to create their own energy, Spaniards will depend more and more on foreign countries. Now Spaniards did not create their own energy, and that results in inflated prices for energy that is necessary for the life of Spain's economy. Higher fuel prices lead to less external competitiveness. If they are not as profitable as compared to other European nations, their standard of living will go down.
Promblema1
Promblema 2
Promblem 3
Promblema 4
Promblema 5
Spain has suffered greatly in the financial system such that the credit for small businesses has been reduced although small businesses provide a great number of work in Spain. The labor market has also been affected by that unions impose the same rules that have been in the past. As a result the youth unemployment rate is forty five percent and Spain could lose a generation of young laborers
The fiifth of Spains promblems is competitiveness with other affected countries. Also even though Spain is one of the largest importers of oil also has been affected by thewater scarcity comom in the regions of Murcia and Andalucia. As a consequence, imports have risen in price and inflation is caused in domestic goods.
The government of Spain has much guilt in the economic situation in Spain. They wasted money on ridiculous project that benefit no one in Spain. For example, lawmakers in Spain built "Plan E" that will spend 15 million euros without creating a new job for the citizens of Spain who are desperate for a job.