Growth vs. Austerity
Just like in Greece, Spain is going to carry out severe austerity measures demanded by the European Union. Spain’s right wing Prime Minister in outlining his plans to fulfill EUs conditions, is planning cut in unemployment benefit and civil service pay, privatize airports and ports while closing state owned companies, and increase the Value Added Tax to 21%. In a country where the unemployment is around 25%, how is this plan going to improve the plight of the Spanish people? Or is this some sort of neo liberal “voodoo economics”? If jobs are not created, where is the tax revenue coming from?
“If you do not have economic growth, no amount of austerity will balance the budget because you will always have revenues go down more than you can possibly cut spending,” Former U.S. President Bill Clinton.
Professor Mekonen Haddis