Thursday, February 16, 2012

Reduction of the social security in Spain

As Spanish government is trying to rapidly undermine the social services with less compensation for workers and less unemployment days, it is about time to look at the countries that have best withstood the actual crisis.
Whereas Mediterranean countries like Greece, Italy and Spain ( and others like Portugal and Ireland ) are suffering, in countries with better social services such as the Scandinavian countries, the Benelux and Germany the unemployed can still spend money as they are getting a minimum wage of the government.
Of course these countries are also immerged in the crisis but, unlike the problematic ones, already show signs of recuperation, in my view because the "lower" layer of the population still funds the economy knowing they will get money at the end or the beginning of the month.
What Spain is doing now reducing the unemployment benefits only creates more insecurity and therefore less spending from the less lucky layers of the population, which means that about 25 to 30% of the inhabitants aren't really forming part of the economy any more.

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