Friday, February 17, 2012

The only way to create employment

Now that the unemployment rate in Spain is above 5 million, or way above a staggering 20% of the working population, it might be time to remind to politicians a book I read about 15 years ago, and then lost it unfortunately.
I am talking about "The Trap", a book by James Goldsmith, whose family still own quite a large part of Benahavis. In this essay, the millionaire writer explains in a clear and simple way why globalisation is doomed and only producing locally can actually give some relief to the unemployment figures.
It should not come as a surprise that unemployment is on the rise as most of the labour intensive local production units close in favour of cheaper wages abroad, thus giving rise to the imported amounts of most developed nations, leaving on the other side countries such as China and India with an enormous surplus.
With companies having to produce locally, either within the borders of a country, part of that or an entire continent ( according to the product, but the smaller the area, the better ), the sales price might rise a bit, but the unemployed will drastically reduce, thus taking the pressure of the government finances and stimulating the local economies.

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