Monday, June 3, 2013

Finally Some Economic Sense in Spain

The governor of the Bank of Spain, Luis MarĂ­a Linde, on Friday called for suspension of the minimum wage.

The youth unemployment rate in Spain is at a record 57.2 percent. Spain’s overall jobless rate hit a record 27.2 percent in the first quarter, with 6.2 million people out of work.

“After five consecutive years of job destruction, the unemployment rate has reached unacceptable levels and the risk of long-term unemployment becoming chronic is a very serious concern, all the more so if the high incidence of youths and the least-skilled in this group is considered,” the Bank of Spain’s annual report said.

The higher the minimum wage, the fewer workers it becomes profitable for firms to hire. Eliminate the minimum wage and unemployment benefits, and the unemployment problem will disappear faster than you can say, "Algo es algo; menos es nada"

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