The Economy of Spain: World's Greatest Bubble?
ฝัง
- เผยแพร่เมื่อ 22 ม.ค. 2021
- The Spanish Economy is one of extremes. At one point a focus of the Eurozone Crisis, at another the largest contributor of growth, and more recently, suffering the greatest economic hit of any Advanced Economy in 2020.
Spain’s Economic problems are often confused. In the years leading up to the Great Recession it posted consistent budget surpluses.
However, a huge real estate bubble was lying in wait.
The question... is why?
Why did Spain go from a seemingly safe level of debt to one larger than its Economy?
How was the housing bubble encouraged?
And since then, has Spain’s Economy ever truly recovered? Or in what ways?
-REFERENCES-
altsimplified.tv/spain-episod...
#Spain #SpanishEconomy #Economics
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
Enjoyed the video?
Subscribe here: / @altsimplified
Follow AltSimplified on Social media:
Website: altsimplified.tv/
Facebook: / altsimplified
Twitter: / altsimplified
Discord: discord.io/altsimplified
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
"Bedtime Reading" Reference: www.europarl.europa.eu/RegDat...
Please note that end fiscal stimulus for 2009 differed from the projection, sorry for any confusion! 👍
▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀
📕Recommended Reading:
Many have asked what we'd recommend to start reading, so check out the links below. They are affiliate links, but come at no extra cost to the viewer, you'd just be supporting the Channel if you used them.
📘"How Asia Works: Success and Failure": geni.us/HowAsiaWorks
📘"The Ascent of Money: A financial History of the world": geni.us/TheAscentOfMoney
📘"Debt: The First 5000 years": geni.us/DebtTheFirst500Years
🎙The mic we use to record: geni.us/MicWeUse
Thanks for watching! ❤️ You can subscribe and see all our videos here 👍 th-cam.com/users/AltSimplified
Well informed videos, well done! Hope next you will make some about UK and Romania. Don't mind watching videos about other EU countries as well . Thank you
@@vardekpetrovic9716 Italy can't compete with Asia on cheap products, we Europeans should shift to a german model (in my opinion), also constant devaluations on their currency destroyed people's savings
The world's greatest land asset bubble isn't Spain in 2008 or Ireland today, it is still Japan in the 80s, the country still has unrealized debt that accounts for Japan's unusually highest debt to GDP ratio in the world. They are expected to pay it off by 2030 or later. Japan's asset bubble economy is referred to as the 'greatest party ever thrown.'
Please do a video about Ireland economy 🇮🇪🇮🇪🇮🇪
Loved the vid. Maybe in the near future one about Serbia? Would be interesting. :)
"I am firmly convinced that Spain is the strongest country of the world. Century after century trying to destroy herself and still no success." ~ Otto von Bismarck
What a source though! Top marks!
It's a funny quote but Otto von Bismarck never said that btw
Es una cita entretenida pero Otto von Bismarck nunca dijo eso por cierto.
i would say poland is morr resilient than spain
@@patricksweeney5308 Reconquered by the Moors? Dude, have you seen London or Paris? Some of the neighborhoods there look like Saudi Arabia or Algeria. I haven't seen that in Spain.
@Entre Nous And our internal quarrels during the good times, while we can only unite during the bad times. Though we have been getting better!
It is far too hard to start a small business in Spain which is preventing the economy from becoming more dynamic.
Actually you can do it online with an electronic cert. and have it up and running in a day.
That´s not to say that spain is in some ways not an attractive location for a new business.
@@quoth_raven And how expensive is it? It's a monthly fee no matter how much you earn, and even then the benefits you get out of the monthly payment are garbage. Only Spain and Poland have such retarded self-employment regulations. Europe's butthole, instead of making it free and pay on earned income (which actually makes sense)
@@tomassin90 The "monthly fee" that you refer to are social security fees, which are expensive in every single EU country... Alonso is correct: it´s easy to start and dirt cheap for the first couple of years.
In comparison the monthly health insurance in germany for self emplyed people is more expensive, and in spain it also includes pension benefits. Contrary to popular opinion, Spain is actually quite competetive price-benefitswise within the EU!
Firing people is definately too expensive, but you have to take that into account when hiring them! Wages are low and the business ethics are quite bad. I never said Spain is a great place to do business, but be objective: it´s not all bad!
@@quoth_raven How weird, only Spain and Poland have a monthly subscription fee in order to be self-employed. Not Germany, Not France, Not the UK... The social security Fees are paid within the invoice of every transaction and when the Tax date arrives in 95% of EU countries. And they are not "expensive" in every country, in Germany it's 5,5% in France a 10%, in Spain 300+€ a month, no matter how much you earn.
@@tomassin90 what you are saying is false, you obviously haven´t first hand experience with how the system works in other eu countries. For example in Germany health insurance is 15% of your net income, with a minimum amount per month. It´s based on your yearly tax statements, not your invoices or transactions. And as stated, that doesn´t include pension or anything else.
In practice social security fees are around 25-35% in all EU countries. The thing is, every system is slightly different and mostly quite complex so you can´t just compare the "cuota mínima de autónomos" of Spain because it´s not called that in other countries. That doesn´t mean that you don´t have to pay and that there aren´t minimum fees.
Been living in Spain for over 4 years and I would like to add that starting a business, small or big is not easy. The taxes, social security, permits, fines are really high. It got even worse in COVID-19 times where existing businesses had to close because they could not afford to pay their share of monthly salary to their employees while being out of business. Yes, the government did pay the benefits to the employees, but it's impossible for most small businesses to contribute their share for the employee benefit for such a long period of time with absolutely no income source.
You should make a video on British debt , UK GDP is 2,978 trillion,and his debt is 8.126.000.000.000 trillion, The second largest on the planet . MUCH GREATER THAN SPAIN'S DEBT, IN QUANTITY AND in THE PERCENTAGE OF GDP ....
It's the same all over the world, in case you haven't noticed. Small family busineses whatever they might be, WILL succumb to mega corporations everywhere. Governments are regulating small businesses to DEATH in favor of the big mega corporations. Have a small business? SORRY OLD BOY, you lose.
I truly admire the Indian community here in Spain. I don't even consider starting a business here because of all the obstacles and huge taxes to entrepreneurs. If I ever want to start a business I will do it in another country.
But youtubers bad xdd
Factores
In some countries, succeeding is building a company from the ground up, in Spain, succeeding is getting a lifetime job as a civil servant.
It's odd to me that a couple of entrepreneurs that I know who own relatively profitable businesses in Spain have told me that they want to be civil servants... Why though?
@@inigojordana Because in Spain, becoming a civil servant means you have a paycheck guaranteed for life, among other perks. You can't be "fired".
@@ImNotADeeJay Yes, it's odd to me though, as it's the only place I've lived in wherein the goal is to work for the government.
I'd rather rent myself out to a private conglomerate in the UK.
and don't civil servants retire at 60 with 82% pay? and a lot of them finish work at 2pm as well I think.
The video misses how the bubble was greatly fueled by legislation which allowed local politicians to profit economically from the construction industry.
The same bubble happened in US but the difference is that in US the government is really good at hiding their implication. I’m Spain the government is a lot more sincere.. and far less secretive and honest.
@@Javservice Not more sincere. More stupid maybe.
@@Javservice Only when we get them lol. I cant imagine the fortune our last king stole
@@TheIronalvarohide nothing compared to what the Biden family has and will steal in the next four years😂😂😂😂🤣🤣🤣
It's always government intervention that creates more problems than it solves.
As a Spaniard, I think one of our biggest mid-term problems is going to be our public debt. It keeps growing and growimg and the government keeps making policies which make it even worse
That's why I'm leaving
I agree. I don't get how people keep voting socialism. Sooner or later our debt is going to be unpayable. If i ever have the chance I'll leave.
Private debt is worst.
The former right-wing party LOWERED the debt.
The parties of the previous left (Zapatero) and this (Pedro Sanchez) have increased the debt.
In two years ruling the left, the debt has increased more than in the last 20 years
@@TheRaul45 hahahahahaha. Did Homer Simpson said that? hahahaha Rajoy was the worst of all. Holly Molly!
You talk about literally everything but forget Spain's main problem: we don't have a strong industry. That's why France recovered easily btw, because they do. We basically rely most of our economy on tourism and services, which only create low quality jobs. This creates a never-ending economic loop which we will never be able to go out unless our government starts to promote creating industry (like software, for example) and R&D
Part (at least where I live) is resistance to other languages in favor of dialects. Where I live people refuse to speak English. Signs in government buildings are in Spanish and Valenciano. I think it inherently causes resistance. Call an American company and they will allow you to select your language. In Spain, tough luck if you don't speak Spanish fluently.
I think I am ignorant of the larger picture because I live in a smaller resort town, but service industry jobs are staffed by foreign help and the 'good' jobs picking fruit are ALL staffed by foreigners and paid in cash. I don't think I know anyone who has a job that is Spanish beyond people who work at the supermarket. The healthcare is abused by EU foreigners who just leech off the system and contribute nothing due to government aid, methadone policies, etc.
Don't get me wrong. Love it here. I think you are right about the lack of industry. But I am not sure I see anything but red tape in the way of trying to get a business going. I need to know someone who knows someone just to get an apartment.
I am sure I am a little blinded and myopic. I also absolutely love the culture's weighting toward family (except how that has contributed to the pandemic). But the business resistance is somewhat self-inflicted. Years ago I wanted to import a particular product that I think is the best in the world of its type made in Spain. The family values made the manufacturer resist until I met him in person. In a way it is beautiful as is the clinging to culture and dialect. But it would be more helpful if it were expansive rather than regressive.
Victoria, France has liquidated 50% of its industry in the last 40 years ! France has not recovered at all, we are indebted like crazy !
True
@@christoohunders5316 Haha, Spain has liquidated more than 80% of its industry in 40 years and has sold almost every single state company to international investors, believe me, it can be worse
@@redding8309 I thought Galicia, pais Vasco and Catalonia had still a fairly decent industrial background ?
At the very least, I now grasp the concept of leverage.
Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.
Most people simply enter the foreign exchange market without comprehending matters like this.
The first stage in building money is determining your goals and risk tolerance, which you may do on your own or with the assistance of a financial counselor who works with a verified Finance agency. And also you can learn the facts about saving and investing and create a clear plan, you should be able to acquire financial security over time and enjov the benefits of income management.
That is why I work with John Desmond Heppolette, who introduced me to a better Financial community, a verified agency where I learned how money works and how to create it, as well as free books, courses, and daily lectures. You also get to meet new people, which was the best decision I ever made.
Yeah real, that guy is one asset manager that gives the breakdown of everything on how things are done, joining an effective financial community can be 100% beneficial when joined properly that's all I can say out of experience
Please who is John Desmond Heppolette..?
He also happens to be one of the best asset managers I've ever worked with. I've actually had a conversation with John Desmond Heppolette. It has been a truly flawless experience for the past 6 years.
As a Spaniard I must say that though the video is great in general, there is a mistake regarding banks bailouts; national banks weren't really bailed out, it was the regional ones, called "Cajas", which were controlled by politicians and theoretically non-profitable structures, the ones who needed and actually took the bailout. Anyway, very good content overall
Correct, and a very important point:
no private banks where bailed out with pucblic money¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡. "public", banks full of politicians in their boards needed a bailout with public money.
You mean public sector banks as opposed to the private banks , and these were controlled by corrupt politicians and unionists. That's what the taxpayer bailed out. Unfortunately the Spanish political class is its cancer, and has been for centuries.
Totally correct. Political corruption was a major problem too (it still is)
^This is false. There were also 'banks' bailed out. Like Banco de Valencia. And these regional banks were private in nature. La Caixa was not a public bank, ffs.
@UCcd4H0pI6E1t9hA_SKr08ZA Banco de Valencia was the only exception and it should not really be considered a private bank, as its main stockholder was Bancaja itself (one the before mentioned "Cajas")
I think Spain is undeniably beautiful
Ty
Also great food and great people, I love going there..
@@eldon6054 Un Aragonés por aqui? Ya es raro con los pocos que somos
@@Jose-gc8rl jodo co, añádele otro
Every country is.
I am not a Spaniard, but I absolutely am madly in love with this beautiful nation-its people, its nature, its language and culture, food and traditions and so much more. I was there 5 yrs ago and there is nothing I didn't like as someone, who comes from a much smaller and a lot more crowded and stressful place in the Eastern Mediterranean. I think Spain's faring a lot better than Greece, Portugal, Romania, Bulgaria, the Baltic States and I am positive the future is definitely much brighter for Spain than many other European nations in the long run. Wish you all the best, oh, gorgeous beauty and may you prosper and thrive!
✌️✨✨✨🍷
Such a passionate comment should have ended with an "Olé!"
You should make a video on British debt , UK GDP is 2,978 trillion,and his debt is 8.126.000.000.000 trillion, The second largest on the planet . MUCH GREATER THAN SPAIN'S DEBT, IN QUANTITY AND in THE PERCENTAGE OF GDP ....
Muchas gracias crack!!!! :)
@@octavio9943 A nadie le importa la deuda que tenga un país, lo que importa es si se puede pagar o no.
Too much corruption is a big reason . . .
You should make a video on British debt , UK GDP is 2,978 trillion,and his debt is 8.126.000.000.000 trillion, The second largest on the planet . MUCH GREATER THAN SPAIN'S DEBT, IN QUANTITY AND in THE PERCENTAGE OF GDP ....
Corruption is a factor, but i would say that the biggest reason is socialism. People keep voting more public expenditure instead of lowering taxes and bringing foreign investment to the country. The more public expenditure the higher the taxes for the middle class. Also another problem is that we have SO MUCH bureaucracy that it is virtually impossible to create your own business. In addition we have a political social class (yeah im even considering them an autonomous social class) that acts as an oligarchy.
@@octavio9943 Nope. As of 2020, UK debt is 1.8 trillion, 84% of GDP. Spain debt is 1.4 trillion, 120% of GDP. Anything over 100% of GDP means real problems.
@@101jlam You don´t even know what socialism is.
@@jonvace9560 illuminate me Jon. I'm pretty sure you have a vast amount of knowledge that will shine a light upon my understanding of my own country.
very nice video. I live in Mallorca, which is like 80% dependent on tourism and people are hurting :(
Wirst du in Zukunft aussichtsreiche Aktien aus Spanien vorstellen?
Thanks mate. Cool channel by the way 👍
You should make a video on British debt , UK GDP is 2,978 trillion,and his debt is 8.126.000.000.000 trillion, The second largest on the planet . MUCH GREATER THAN SPAIN'S DEBT, IN QUANTITY AND in THE PERCENTAGE OF GDP ....
@@octavio9943 Yes but they have their own currency and it’s mostly owned by the British people
@@octavio9943 u sound hurt lmao
I just dont understand how you can pump out this quality videos in such a short span
When you love what you do! Plus red bull.
Maybe, "...in such a short spaIn"?!!🎩😎
@@AltSimplified seriously, how you don’t have e subscribers is a mystery to me. You deserve hundreds of thousands
Easy with Some really good COKE.
@@usayeed727 got one more at least with me now :)
I am a self-employed person in Spain. You comented on the culture of black market working. I think this is a huge part of the problem. If you choose to be legitamatley self employed in Spain you are absolutley punished with tax and beurocracy. If they lived in Spain Bill Gates and Steve Jobs still have a black market business out the garage! If they cant fix this !.....
Not the first time I've heard this Howard. I think there's a major need for the government to address stifling red tape.
I was self employed in spain for 10 years. Now i live in Taiwan. Only missing the food, the well regulated traffic and the people i know over there ~~~
Small companies smashed with taxes that are not invested in Tech or core Industry, against Huge companies that don't pay even 5% of what the should.
If Steve Jobs would be a little slave for Telefonica, would get underpaid because innovation is just ignored, so he has no chance.
Thats why I write this from Germany.
You should make a video on British debt , UK GDP is 2,978 trillion,and his debt is 8.126.000.000.000 trillion, The second largest on the planet . MUCH GREATER THAN SPAIN'S DEBT, IN QUANTITY AND in THE PERCENTAGE OF GDP ....
@@franciscobroseta546, I have heard wonderful comments about the food in Taiwan.
I’m from Barcelona (Spain) and I’m sure that one of the biggest Spanish problems are our hospitality and tourism-based economy instead of a technology-based one which are more resilients. We have not changed our Real Estate problems where the high demand from tourists push higher the prices making it dangerous for the local economy with lower salaries than this European, American or Asian tourists.
هذه هي المشكلة الحقيقية بالفعل
ضعف القطاع الصناعي والتكنولوجي في إسبانيا كارثي
As an Spaniard, I can confirm. I am surprised by how well informed you are about this issue.
Your words reminded me of all the years my childhood spanned... Which were all characterized by the constant crisis, a word that has a very dark, and constant meaning for every Spaniard. It was painfully dramatic to see how the economy shrunk. At the very beginning, in 2008, and during the first months of 2009, the elderly used to say that we would complain too much for the situation, and that crises which took place during the last centuries were way worse. But soon, they all shut up. Everyone shut up. The president of the Government (or the Prime Minister for you Anglophones), who began by saying his famous phrase: "Trust me, there is no crisis", was forced to renounce and dissolve the parliament one year before his tenure was finished, because of how dramatic a situation turned out to be so he could not longer face it.
Even taking a walk through the city was sad: you would see almost every non-essential shop closed. I remember how my friends and I used to go all the way up to the next town just to eat a burguer, because there was not even such a thing in ours. I know, it sounds silly that I complain about it... It's just difficult to describe how fucked up everything was. People who used to have a good job and a family were suddenly evicted and being left out at the streets. That was a national drama, seeing how, day after day, the police would show up and evict a family who would resist as much as they could.
Education turned out to be horrible, too. Because of the austerity measures, costs had to be cut in schools. I remember how I was with 41 other people in a single room which was designed for around 25.
I know, I know, there are worse things like this in the world. And there are also many other, worse things I remember about those times, but I just wanted to write some impressions down.
At the end, the economy recovery was fragile. At the beginning of 2020, everyone could see that: underpaid and temporary jobs were widespread, and tourism, a low add value industry, was one of the drivers of the economic recovery. We would laugh and say that we were not at all prepared, should another crisis hit the economy. The worst case scenario up until that point was the US-China trade war, which did not affect us that much... And then came covid, and everything began, once again, to crumble.
Man, I just have one year more of college, and I know very well that as soon as I finish it, I'll go abroad to look for a job, and a life. Seriously, the job prospects here are trash, you may well end up working underpaid for more hours for those of you were officially hired for. Fuck this, I'm going out. Wish me luck, TH-cam.
Good luck!
You should "thank" your elders for building up a nation full of debts and still vote the ones who decides this way of politics.
Now, a whole generation like you is looking outside Spain which build up a massive brain-dran. Over here, a lot of Spanish people come by and never want to leave.
Spanis communitys are growing
Good luck. Thanks for taking the time and sharing this wonderful personal reflection
@@jnimitzch4738 You sound like one of those elderly that moved to Spain.
I don't know from wich part of Spain you are, but that's not true at all...
This is a blunt exaggeration. I am a Spaniard living in Germany and I do not relate to many things said in this post (and I lived in Spain throughout the crisis). I will comment just on one: it is not true that the recent history of Spain is characterized by a constant crisis: from 1995 to 2009 there was a period of constant growth which consolidated Spain as a fully developed country in Europe. Plus, since 2015 the country was growing again, enjoying some of the largest growth rates in Europe and attracting hundreds of thousands of immigrants (I can provide you with the source of this data if you want). In any case, you should really live some time abroad in order to realize that most of the countries are not as perfect as you thought they were on paper. There is a reason why so many Spaniards that leave end up coming back to Spain (you can check the statistics, the number of Spaniards living abroad is constantly reducing). Also, you will see that many of the problems occurring in Spain also occur even in the most developed countries such as Germany. This will help you put things in perspective when complaining. By the way, fun fact: the percentage of Germans living abroad is larger than the percentage of Spaniards living abroad.
The world economy is collapsing and Bitcoin is still at $19,000..
For nearly 14 years the Fed supported the U.S. economy on a foundation of cheap money. This created malinvestment, misallocation of resources, asset bubbles, and excessive debt and consumption.
People believe their currency has the worth it does because they have no other option. Even in a hyperinflationary environment, individuals must continue to use their hyperinflationary currency since they likely have minimal access to other currencies or gold/silver coins.
@@legilooks, You are right! I diversified my $100K portfolio across various markets with the aid of an investment advisor, I have been able to generate a little bit above $300k in net profit across high dividend yield stocks, ETFs and bonds during this red season.>
@@younglee-segredo831 How can I contact this adviser of yours? because I'm seeking a more effective investment approach how good is this person at portfolio diversification, particularly with regard to digital assets?
_My advisor is ’Cintra V. Bedassie’ In terms of portfolio diversity, she's a genius. You can glance her name up on the internet and verify her yourself, she has years of financial market experience.>
I wish all the best to our neighbors Spain! A great and historic nation thats for sure! Greetings from Portugal!
Yeah both are colonial emperor
We are iberian and celtic brothers
Alexandre lambe-botas, não tens vergonha ?
I've been visiting Spain since 1982. My wife is Spanish and we are based in Britain but have family in the Basque Country and Castile. We also have a small property in Andalusia. I remember driving through Valladolid and the north of the country around 2006/7 and there were crappy rushed buildings going up everywhere. I asked my father in law if there was a housing shortage like in Britain and he said no, it was just that property was a solid investment. That idea that property could be an investment without any demand seemed ridiculous to me but it was happening everywhere. It was providing a massive amount of well paid employment and nobody was asking questions. The whole country jumped on the bandwagon and when the crash happened there were thousands of ridiculously overvalued properties without any chance of a sale or occupancy. Moving forward and Spain has huge problems including a rapidly ageing population and pension crisis, rural drift to the cities and the emptying of the interior (a problem Spain has always had to contend with), foreign brain drain of their best talent, stubbornly high unemployment, particularly in certain areas, a nationalist problem that makes Scotland look like nursery school and a seemingly poor level of political competence and courage to address any of these issues.
Your last sentence is the key, our politicians are our biggest problem....
Spot on
So perfectly described. And after watching this videos you can understand how Argentina (mostly influenced by spanish and italian people) has followed the same path
There's no demand you say? Come on, try to get a normal flat at a decent price in any city on the coast or one of the Big ones in the interior. Good luck.
@@castronator29 I think what he was mentioning was there was not sufficient demand at the time bubble exploded for so many developments. Right now probably the demand is on again but still there's no well distributed. A lot of houses available in the interior and no single space in big cities
Having lived through the Texas oil bust of the 80s the lesson’s learned are; spread your risk and position yourself to transition to new markets quickly.
I lived through the same crisis. Because housing prices in Texas at that time were linked to the price of oil, that was a great time to buy a house in Texas. Houses that were worth more than $100K before the bust were valued at less than half their original price. But many homeowners were stuck with houses that were valued for less than their mortgages and those that could either refinanced or just let the bank foreclose on the house.
Curé, yep, the deep pockets cleaned up.
@@georgfriedrichhandel4390 that's really bad
@@theresaferrell8252 What was worse was the false middle class that oil had created. During the boom times, it was possible for a young kid to find a high-paying job in the oil fields and they didn't even have to finish high school. But when the bust occurred, they were the first to get laid off. And it was a long way down.
@@georgfriedrichhandel4390 that was the same problem in the construction industry in spain. Lots of kids left school because you got paid more for laying bricks than as an aerospace engineer.
What the euro did is:
Too many factories in Germany
Too many public servants in France
Too many houses in Spain
🙄 and uhh TOO MANY ...... in The Netherlands. ⛲
@@sebastiaanmeijer4922 morrocans ?
We are the biggest bar in Europe, come and enjoy our landscapes, we don't\can't offer nothing more
@@rachidaitcherif2572 "stoners/hookers"
The Euro made France spend money on public services ?
The Euro does not mean governments can go to the beach.
I am 29 years old and from Spain and I have been earing that Spain has been in crysis all its life. After finishing my electrical engineering degree I had to emigrate to the UK because I couldn't find a stable job there...so I think that the whole government needs a internal reform. They don't stop stealing.
'Cause us 90s generation have grown in almost constant economic depression. It is literally impossible to reform Spain because it was made so any significant change was actually impossible (3/4 to reform constitution, Tribunal Constitucional banning laws passed with absolute majority, etc).
There are also thousands of electrical engineers working in spain. if you were not able to secure a job does not mean the country is bad. Do you know spain represent 10 percent of EU industrial output?, the second biggest car manufacturer, third in machine tools manufacturing, aerospace etc. do you know of corporación mondragón ?. please go and learn a bit about your country. Hay que defender la marca España hombre.
@@orukpe1 a country where a person with an university degree earns 1200€ euros is a banana republic, y antes de nada soy español pero no gilipollas para defender lo indefendible.
@@borja4593 Mire borja, eso ocurre en cualquier parte de mundo, depende de lo que hace esa persona con título universitario. No todos gana 1200 euros. algunos sí sin duda. depende de su experencia. Tambien hay que saber buscar trabajo. metete en INFOJOBS y verás.
@@borja4593 otra cosa más, no te van pagar 3000 euros simplemente el hecho de tener título universitario, hay que rendir y aportar valor a la empresa, y es así en todas las partes de mundo no sólo en España. Te digo porque he vivido en muchos paises.
I am Spanish and love Spain but left to other country years ago to work and have a proper career. I cannot support the incompetence of the politicians over the years (left and right) and the archaic companies mentality.
Oh, Spain... I love you and hate you at the same time. Being a scientist I will have to go to a country that really values me.
I had to go once to the UK. Stayed there working for a year and now I'm back working in Spain. That made me realise how great this country is. Spain would have great places to work in as scientists if it weren't for the deindustrialization promoted by the joining in the EU or the inequalities of having the 17 governments who compete instead of cooperate.
Same here man
Same here
@@AnimationESP competing, instead of cooperating, is NOT the problem.
Look at Switzerland and their kantons.
Madrid has lower taxes (competing) and is booming. Other regions are forcing the central government to force Madrid to increase taxes, because they miss out. Because there is NO competition.
@@sergiolopez5380 Are you sure Extremadura can compete with Madrid? That's absurd. Madrid needs to boom in order to increase competitiveness in other regions. The competition doesn't need to be inside our own country but abroad. It's not about not wanting lower taxes in a region but having the whole country take advantage of what has been built thanks to that.
What it surprised me the most to know, is that In Spain, is if the bank take your house and the equity is less than the debt, people will lose their houses, and still they will have to pay the banks till they repaid their debt. Most countries (at least the ones I have lived) you can go bankrupt and you start over, yes you lose the asset, but you dont have any debt.
So it’s better to go bankrupt then ?
@@Cloud29065 So for the individual affected, of course! but for the economy there are studies that indicate that is also a good thing.
@@clarazegarelli5861 if I’m in Spain and in debt I will deploy this plan thank you 🙏
@@Cloud29065 to the best of my knowledge (and my info can be obsolete) Spain does not have an equivalent to USA Chapter 13 or Chapter 7. Anyhow you might want to check with a lawyer.
The idea is to cover the debt with the asset. When the bank takes the house they are not taking the property of it, they are exercising their right to sell the house to cover the debt that you have with them. The problem comes when the bank cannot find a buyer(Which is quite common in Spain) so they have to lower the price of the house to sell it(A public auction is held to sell the house in which the bank itself can participate, but banks, in general, are not interested in houses). If they sell it for an amount lower than the debt, you still owe them the missing part. It can be negative for people with low economic resources, but if you look at it from the point of view of real estate investors or people with more resources, it is the fairest way to do it.
Quick answer: Blame thief politicians and the lack of commitment of the people
I think this is a great video, free from ideology and shame, because normally "economic" channels tend to gilt countries for all bad situations they go trough and shame them for that. This one comments what happened in a professional way, very nice job
The greatest real state bubble was Japan in the 80's... Where the surface of the royal palace came to cost the same as the state of California.
I live in Spain. Both my parents have their own businesses here, and they always give me this advice: get out of here. Everything is so corrupted, politicians living like kings, public money spent in all kind of nonsense , and all of that maintained by high taxes, so high that you wouldn't ever want to start a business here. This year is getting worse and I've already applied for universities in Sweden. I hope I can go as soon as possible.
So look Germany with much higher taxes, and anybody critises him.
I'm sorry to read this anyway Italy is the same. Good luck and I hope you will find a stable employment in your country in the future
@@betuni2688 I don't mind about paying taxes as long as it's used for what it's supposed to be used.. even if they're high
@@marcor5886 thanks a lot man!! Good luck in Italy too brother
Meanwhile Argentines emigrate to Spain looking for better opportunities 😅
I'm really glad I found another channel like Economics Explained. Excellent content!
Decided to sub today after just watching your stuff regularly. Also wouldn’t be fair since I sub to Economics Explained and your videos are just as good if not better.
As an Spaniard I have to say that the video has been great and interesting but you left out Spain’s biggest problem: the Retirement Pension system. That actually costs 45% of the total public spending. I suggest you reading about it because it’s a very interesting topic. The 9% of the GDP in used in paying the debt interests, 15% in public healthcare system, 10% in education, 45% in the pensions, and the rest in state workers, politicians, helps, and all the state structure.
response from Spain: POLITICIANS, THEY ARE THE BIG PROBLEM. Corruption, corruption, corruption
Politicians are the administrators of the country. Ofcourse they are responsible:
The gov (politicians) decides the type of interest at which it lends the money to the private banks, if the interest is low the banks borrow more money and uses it to lend it to people, this creates more investment. This is how the bubble is created, because the saving don't mach the interests since the interest has been decided by the gov without considering the savings. Since the interest was so low people invested in long term because they thought the savings were high and there for they could keep borrowing money. However the savings eventually expire and we get a lot of unfinished projects unable to give back the money to the economy or the banks, this is when the bubble explodes. After this there is a perior of time at which the money is lend at it's real interest and only real productive investments can be created, this period of time is called CRISIS.
The same means used to scape from a crisis can be used to avoid it in the first place. The politicians just need to stop deciding the type of interest at which the money is lend without considering the savings to gain political revenue for themselves. THE POLITICIANS, THEY ARE THE BIG PROBLEM.
I would add some fault to all the builders and plumbers evading taxes, “poor” guys drop from school rode the wave made a lot of money but didn’t invest it. All of them always asking “la factura sin iva?” Or not asking at all.
@@diegoo.3403 While evading taxes is bad for the economy, it barely contributes to create any bubble, it just lowers the savings, but doesn't distort them. If anything it just makes a little harder to finish the crisis once the bubble explodes. I'm not sure how school dropping affects the economy to create any kind of bubble, so I can't say anything about that.
Lefties is the problem
Nuestros políticos son un cáncer desde luego, has dado en el clavo amigo
Yeah, we are still kinda fucked here in Spain... Getting a job is already a great challenge for a lot of people, just don't even talk about owning a house. Even renting a flat is too expensive for many here.
I'm surprised renting a flat is difficult financially. I make a quarter of what I made in the US now and pay 1/6th the rent of a comparable apartment. 300 euro a month by the sea for 2 or 3 bedrooms is something you can live on even with the worst 2 euro an hour 104 hour work week job.
Must depend heavily on where you live.
@@richardlynch8009 you work 104 hours a week??? for 2 euros an hour???
@@ibrahimqabalan8498 I was doing a favor for a local business owner who broke his arm and couldn't cook in his restaurant. I hadn't been in a restaurant as a cook in 25 years but I offered. At first, it was supposed to be 35 euro per shift. I only worked the early shift at first. Then he asked me to come in at night. That would have been 70 a day. Then he said "Oh, no. I meant 35 for the day..." If you are seeing the MO it only gets worse. Getting paid was a horror story.
I opened at 8, put all the tables and chairs out on the street, began prepping the kitchen. If I ran out of things to do I started working on the cockroach problem. People kept asking me "why don't you sit down?"
The restaurant would close about 3.30pm, and then re-open at about 5 to prep for dinner. I'd work till 11 or 12 and close by taking all the stuff back in. 7 days a week.
At one point he just stopped paying me and I said "look... I'm not coming in if I don't get paid." He didn't believe me. I stopped going. He called promising to pay and I said "pay when I walk in the door or I go home." He didn't. I went home. He told everyone he fired me for drinking on the job, stealing from the till, stealing food...I never even ate there and he knew it.
He still owes me about 1000 euro. He went to jail for cocaine possession with intent to sell (he actually tried to force me to take steroids one day...). He got out for a little bit and got arrested for the SAME THING. I believe he is now in the slam for a long time.
It was quite a wonderful experience. He screwed other people out of months of pay. He's in jail where he belongs. I went to the police, but it was a waste of time. He was a good 'ol boy...
I currently freelance as an editor. I have an education (MFA writing) and skills. I don't bother trying to look for jobs in Spain. But that was my one experience.
@@richardlynch8009 That's just your experience with a thieve. I couldn't say that's the normal bahaviour in other businesses. But hiring an apartment in other big cities like Madrid, Barcelona or Palma de Mallorca, is almost impossible unless you're willing to spend 900 euros per month. With salaries not going above 1200-1500 euros, it's quite tough to survive, even if you're an skilled worker.
@@BlackHoleSpain @Francisco Javier Crespo I live in a small town and freelance around the world via the internet. If you live in a big city and can't afford it, maybe that's not the right way to go. I didn't think it was normal for all of Spain. However, right now my land wants to raise the rent...because I asked for a contract so I could prove things and get my residency. That's a really crappy thing to do in a pandemic. And don't say "he needs money too." He's been on pension for like 20 years and he's loaded. He still gets what he was getting and I never ask him for anything. I'm not insulting Spanish people in general, I know some of the best. But business practices here are weird. Maybe the rents are so high because it is impossible to throw people out when they don't pay? Maybe if more Spanish people were open to speaking other languages they might attract more business from around the world? Don't think I'm defending other countries, but there is a lot Spain can do to compete in a global economy other than relying on tourism.
I'm glad I came across this channel .
This channel is really a hidden Gem!
Welcome 👍
Nice video, but you forgot to talk about the bankruptcy of the pension system, which is a very big problem nobody wants to talk about it. Cheers from Spain
We have a very similar problem in The Netherlands, it's no secret that the system is not sustainable, yet for 30 years no action is being taken.
Pieter den Toom Same problem in Czech republic. I think most of the european countries struggle with that
The grand fraud of public pensions. The biggest pyramid scam known.
Raul, VisualPolitic has just posted a video about that very thing
Great video, really!!! Congrats!
I'd love to see you tackle the Portuguese economy and it's current situation in the same vein as you did in this video, about our neighbours! Best wishes and keep up the great work. Stay safe!
Thanks! We're certainly planning to 👍
Excellent vid no wonder it's currently the most popular vid on the channel. Well done.
The comment section is a clear reflection of Spain lol:
Some people blaming things on the conservatives/ fascists, others on the socialist/ commies, nationalists, independentists, blaming it on the eu, etc... what Spain truly needs is cooperation between its political parties and for the people to stop seeing the fellow Spanish on the side as the enemy.
Before anyone jumps to conclusions, i am spanish
You're both spaniards. Spanish is the language you speak, not your nationality.
@@ahiezeralaoiz You are wrong:
www.collinsdictionary.com/dictionary/english/spanish
Both Spanish and Spaniard can be used to denote nationality whereas only Spanish can be used for the language
Sad, but true. I've been living in Spain for the past 12 years give or take, I don't think I'll ever understand why there are such fights (and I think they've been worsening lately).
And not only between regular people, even when there are events that affect the whole country, government officials seem not to be able to have open dialogues among the different parties to deal with them, much less compromise on the matter.
Everything is becoming polarized...
@@jrussellmoore this is the oldest and saddest truth of Spain, this is all started long before Lorka or Machado where born, Spain is old and as those previously mentioned activists said, "Ya hay un español que quiere vivir y a vivir empieza, entre una España que muere y otra España que bosteza. Españolito que vienes al mundo te guarde Dios. Una de las dos Españas ha de helarte el corazón" What he tried to say during the civil War was that Spain is polarized, extremely so, and has been so since 1874 and before, there are extremely marked ideologies in Spain and the past that the Civil War left us has only made the two sides more antagonistic and more prone to extremism (as seen specially in Vox and subtly on Podemos).
@@randomaether Best comment i ever rode on TH-cam about Spain. Im spanish too xD I vote for Podemos but i gotta say they are not subtle at all xD Not as extremist as Vox but not subtle either. Thing for me at least is that Podemos actually cares about the poor people.
You are growing crazy man, I remember when you had like 800 subs a few months ago 👍
Thanks! Happy to reach 25k 👍
@@AltSimplified Congrats! And I wouldn't be surprised if it's six figures by the end of the year.🥳
You here too?
@@falkjanen5050 OG from day 1! Hold you're well my man 👍
@@AltSimplified Lucky for both of us, I was interested in the Turkish lira crisis. So I stumbled over your channel and have been subscribed since. Keep up the good work. 😀
"At the end of the spanish civil war..." It´s a very common way to start any bold statement in spain, and also, any fight in a bar.
Why is it in that way? You managed to defeat the terrorists and communists
I still remember when I saw an ad on the underground just before the crisis hit hard in Spain that read: "Mortgages for young people; 50 YEARS so you can pay for your home at ease", or something among those lines.
So saying there was a housing bubble is an understatement. It made me so depressed about the future. Thankfully now I live in London, where mortgages are... WAIT A MINUTE!
My god, you finally made it, a lot of your videos are in the reccimendation page rn, congrats!
I am from spain and I can say that you have explained the crisis better than anyone here could, even the media.
The parallels with Spain's economy pre 2007 and the current Australian and New Zealand economy and it's reliance on over valued real estate are plain to see. Hopefully this video will give insight to many. Thanks 👍
It doesn't end up well mate. I can tell you that much.
Those countries don't have the massive unemployment that Spain has, though.
Both Australia and NZ have housing shortages, 2011 stats show Spain has approx 3.4 million homes lying empty.
It was fascinating that at one stage, 1 in 8 in Spain were involved in construction work. Here in NZ we are bemoaning the housing shortage, & we must get more houses built. But the core issue is that all builders and other construction people are flat out busy. I cannot seem to get anyone to do a little renovation project. Yet much larger places like Spain & Dubai are through their building booms and presumably have unemployed skilled people. In our town real estate prices have increased 34% in one year so you would think a bubble is about to burst, but it will probably take a change in the supply/demand equation or a large movement up in interest rates. So who can predict what will happen?
The quality of the images is worth seeing!
I was also surprised by that, they look amazing! Even the magic trick video
Quality* amigo
@@Atheist2022 thx! ;)
Totally 🤩
Stock footage. The easiest way to illustrate your video is... buying it in fragments.
Thank you for this video, and greetings from Spain! 🇪🇸
Bitcoin sky rocket above $50k and would hit $100k by Dec. Start buying cryptocurrencies is good they're a huge help down the road for financial progress.
@@pamelad6774 $1M in a few years. the fed has no printing limit
@@leandroalbero if you've been following the news you've probably heard they can appreciate in value by hundreds of dollars espically bitcoin.
I'm early today, great video as always. Please do a video about Switzerland.
Thanks! Definitely on the list 👍
You are Already rich.What's the need of economy....... Too much illegal money are going to Switzerland
Good explanation, keep it up, I've learned a lot!
If a country really want to be economically Stable the country must learn how to invest greatly and imbibed the knowledge of savings to it's citizens..
You are right lucas parker but promoting the economy does not depend on only the hands of the country it also depends on the hands of the citizens
I have an advice for the Citizens to also invest on Cryptocurrency that will give them a chance of making more money.
@@elenabaldo2319 that's a nice idea
@Saud Farha as a beginner I will advise you to work with madam Cynthia Edna, for good and huge withdrawals.
@@emmettmax5932 tell me more about her I will love to work with her too.
Nice video, well explained. I am Spanish, from Barcelona, and I am one of those who left the country to find a better life. Went to the Netherlands, and now I will be moving to Germany. I work on research and science, and in Spain it's really badly supported to do this job. No future for science and innovation at all.
I’m in Spain (the s is silent)
Damn that's a pain!
Took me a second to understand good one XD
😂
😢❤️
Bread in french
It also suffers of masive population ageing. The pensions system is going to collapce in the near decades
Covid will take care of that problem, no worries.
You are an underrated channel. You should have a million subscribers.
Amazing content. Thank you for making this!
A HUGE factor in Spain’s housing bubble was that legally speaking, as soon as a parcel of land was zoned as urban it was valued counting how many real estate you could build on it, and you could ask for a bank loan based on that valuation
The problem is that lending was not proportionate to people's earnings and therefore it enhanced the chances of not meeting that debt.
The interest rate was far too low for the Spanish, it encouraged more borrowing than they could afford, and discouraged savings, hurting the Spanish economy in two ways.
Theres too many people out there that think the bubble bursting is the trouble. But its the bubble being blown in the first place thats the real trouble. And cheap credit is nearly always the cause
Sadly Spanish voters cannot use criting thinking skills. Half the country will vote for the left-wing parties because they hate right-wing parties, and the other half will vote for right-wing parties because they hate left-wing parties. They are so busy hating each other that as long as they can blame someone they dont care to improve things around
As a Spanish citizen, I believe you only scratched the surface of the real problems here (although you rightly mentioned the high unemployment rate due to unrealistic job market regulations). In my opinion the roots of the rot (so to speak), come from an exacerbated statism. This has been relentlessly promoted through corrupt media and the public education system, so the main aspiration of the average citizen is to get a job in the public sector, which in most cases here is for life. I will sum up some data (and I apologize in advance for the long comment):
- The amount of politicians is about 400.000 with a population of 47 million. I would say that around 90 per cent of them are useless parasites. For example Germany has about 100.000 with nearly double the population.
- There are about 13000 publicly financed companies which in most cases have only one reason to exist: to employ in well paid jobs friends and relatives of politicians. Although it is difficult to quantify the amount of money squandered here (transparency is not a strong point of the Spanish government), some estimations are that they cost the tax payer over 30.000 million euros a year.
- There is and endless stream of public subsidies to the most quaint individuals and organizations. Again it is difficult to know the money that every year goes down the drain this way, but the most reliable reports I was able to find mention a figure well over 100.000 million euros a year.
I am not going to dwell in the outrageous tax regime, because it is like being held up at gun point, but suffice it to say that this legalized theft is not enough to finance all the parasites, so the public debt (before COVID, but much more now with the lockdowns) keeps growing and growing.
The future looks really bleak for the country.
As a fellow Spanish citizen I have to agree with you 100%, its sad but its the harsh truth. Viva España 🇪🇸
@@cptn777 Entonces criticamos a España o le decimos Viva, en qué quedamos?
Italy has 1 million people living on politics out of 60 million people, you can do the math. The more I read comments about Spain the more I realize Italy is the same. We also have an industrialized area (the north east) as well as Catalunya.
Can’t agree with you more .
@@betuni2688 las 2, si no criticamos constuctivamente nunca mejoraremos. Viva España 🇪🇦
Love these videos plz do the economy of australia next! ❤❤
Spain is always optimistic in terms of making the best out of their economy
Working smart is actually making what others are making monthly weekly without stress.
@@kimhyuwong2164 God has blessed us with resources that can fetch us money just giving it a little attention.
That's right, people work their ass off just to make $5000 weekly which is totally wrong.
Another problem is the almost non existing economic knowledge of Spanish voters. This leads to crippling and sadly populist labor legislation.
And you know this how?
@@TheYvesable I'm Spaniard and the IMF released a statement about this
@@sunmarin6873 Probably the ones who have economic knowledge are the ones that votes like you, right?
@@TheYvesable absolutely not, sensible economic policies are not considered as important in no side of politics
@@TheYvesable Yeah, there's actually no political party which has solid econimic policies. It's like they don't care or something. I'm opting for null vote next elections.
I am one of the spanish who had to emigrate. I came to Canada and not planning to go back. I love Spain, but I will only move back there when I am retired and don't have to care about employment.
Donde vives en Canadá..... a mi me paso exactamente igual. Nuestro políticos son una mierda sin hablar de tanta gente tonta que vota y sigue votando al psoe
@@malvarez8484 Vivo por temporadas entre Vancouver y Yukon. Un poco lejos de España! Psoe, PP... me da igual. No hay uno bueno.
@@juanlucas5649 es verdad a mi juicio el pp es el menos malo. Yo vivo en Calgary
Wise
@@malvarez8484 Que solo cites al psoe dice mucho de tu conocimiento sobre actualidad política en España.
I love your videos! So insightful into so many countries economies
Great Video. Every clear explanation of a very complicated subject.
Just in the middle of the crisis a book called "Simiocracia" was published, for those interested is a deep dive into what happened and why. Nice video. Next one do UK, just for the "blind" and "hard of hearing" 😉
Autor?
Never understood why Mediterranean-Europe is so economically unstable.
Before the Euro they could always devalue their currencies but that also meant higher interest rates. So people were rather cautious when borrowing. Then suddenly there was seemingly endless cheap credit and high growth so people took advantage of what looked like a great opportunity.
@Igor Senkin EXACTLY!
Because they colonized others.................and looted from world.
@@investigativejournalism8393 Well then, why is France and UK not economically unstable when both countries also had huge empires and looted nations?
@@kacpermurach5843 Not to mention Germany, which barely had any colonies at all, yet it's one of the most stable economies in the world.
Interesting video. Greetings from Barcelona, Spain.
What a pleasent evening, entering youtube and one of the first videos you see is telling you that your country is a bubble.
I remember friends trying to buy Spanish properties off plan back in 2007, when it seemed a one way bet with double digit annual increases in value. Ditto what I was hearing about Irish property. It was obviously a bubble, but back then it wasn’t atall obvious when it would burst. The odd thing is why central banks didn’t see the danger, and raise interest rates a lot higher to restrain credit growth. In many ways we’re still in the crisis that inevitably followed, with excess private credit having been replaced by excess public credit via QE programmes. Now worsening a whole heap more with covid spending. It is terrifying to think what will happen when this massive credit bubble bursts, and we get hyperinflation, followed by economic collapse and a decade of deflation.
Best thing of Spain is its citizens, worst its politicians. If you can skip Politicians, then its among the best lands in earth to live good life. Not only because the weather is powerful, the land is rich in minerals (romans settled very strongly for this unique reason), and its very low populated, but because its constitution runs amongst the most free one in europe( doesn’t forbid independent political parties to exist), the judicial power is independent. Though there are problems that will take some more years and that need resolution like lowering the public expenditure and lowering the taxes to make it easy for new companies to seattle. But nowadays this region of the Iberian peninsula (Portugal and Spain) enjoys best experiences in the world, eating experiences, travelling experiences, social experiences, security, freedom, and medical services for all citizens for free. But work needs to be done yet to improve the economy.
Trying to improve the economy of 'Spain' has been an urgent issue for the past 500 years.
Remember ... Politicians are elected by the people ... We are all responsible for the good and bad things ... That is the magic of democracy .
Excellent channel, I have to say
Penetrating analysis long on details and broad in perspective. Just superb work with the very best drone footage. Kudos.
Much appreciated!
The largest problem in Spain is the pension system. Currently 1/3 of government spending goes to pensionists. In the following 15 years, 55% of voters will be retired and the number of pensions would increase a 40%, which make it impossible to pay nor to reform it politically (half of the voters will vote against since it’s their pension). Thus Spain will have cronical deficits and collapse. I am from Spain, just wait and see...
The inability of Spain to depreciate its exchange is what differentiates it from Argentina. That's not a bad thing, but the biggest advantage of being in the Eurozone.
No it's not. It's a much more painful way to experience a downturn for the people. Citizens would almost not notice if the currency depreciated by 30%, there would be a slight uptick in inflation and that's that. Now if the economy has to contract by 30% to normalize since the euro is fixed, then society will definitely notice and you'll see anger across the board with shit like Catalunya independence, extreme politics etc...
Euro only serves Germany.
I am here to support this economics channel, sorry I'm late! Just subbed
Thanks R&B!
Please do a video with the Romania economy also. We also had a great house bubble burst in 2009, after the crash from 2008.
Having an arquitect father, grandfather and aunt, yep... I can tell we had one hell of a big hause buble.
House*
يا راوول. اجلبهم لنا بالسعوديه نحتاجهم. لاننا نبني مدينه نيوم وتكلفتها 1000 مليار دولار. تعالوا حياكم الله 😅
Spains entry to the euro was very good in some ways where economy was boosted, specially the housing market, with a huge bubble. At the same time everything became so much more expensive. A coffee almost doubled in price in 1 year after the new currency.
Great video. As other commenters have pointed out, it's insanely hard to start your own business here or start as a freelancer. The red tape is insane and social security payments are ridiculous, especially for low workers. It's hard to spur economic growth when the government makes it such a challenge to start working.
I love Spain the people the weather the food all absolutely fantastic. Millions of people want to visit the country and so many local people are employed for the high numbers of tourists. This past year has been an absolute disaster as millions of tourists became a few thousand. It seems that we are not going to allowed to travel for the next few months very possibly until after the summer the summer is the big season when Spanish businesses make enough money to see them over the winter season this year if things don't pick up they will go out of business. As such high numbers of Spanish are dependant on tourism it is a bigger problem than for other countries. This past year has been a difficult time for everyone and the people of Spain especially.
Yes, true, but Tourism in Spain represents 12% of its economy. There are many other sectors.
As in the previous real estate crisis, and as can be seen in the statistics, Spain knew how to reinvent itself and began to export because it had no other option. Perhaps these moments of change allow Spain to seek new lines of business.
Dubai probably had the World's Greatest Housing Bubble.
Laughs in China
That would be Shanghai or Shenzhen
@@danielkudo4800 Shanghai or Shenzhen are not countries, Dubai City is the entire Dubai.
@@ravinchowdhury5215 Dubai's economy was Oil, Real Estate and Tourism, China's economy is way more than that. Is not so much the size of a sector, is more about the share of that sector in the entire economy.
@@morganangel340 i don't understand how the subtleties work with dubai being an emirate and all, but isn't dubai a city in the UAE?
We're a weird bunch, yeah. I've traveled around a bit, and I always return to the homeland, even with the issues it's still a freaking nice country.
@Hi AltSimplified. As a spaniard I can say it is good video in general, maybe a bit sensationalist, but that's the Brittish style. I agree with most of what you say overall. Just a couple of points here that need further discussion. As you pointed out there was a housing bubble, originated during the conservative party's rule and continued during social democrate's administration when soil legislation became dysregulated and tax cuts facilitated the acquisition of a house. The latter, was fueled by the cheap access to credit, mainly through some public regional banks. But not all 42 were affected, most of them could have survived, although they decided to merge healthy and toxic banks, inject around 120 bn, 42 bn from Europe (of which 23 have been given back already). These banks products (among others) were bought and traded in markets like (dysregulated during 80's amid a neoliberalist wave) New York or London were they were happy to gamble with toxic finantial products.......until the finantial sector (world wide) turn from greed into fear an it collapsed in 2008. When that happened the party was over everywhere, but in Spain in a particular fashion, more than 15% of goverment revenue came from the construction sector. By 2010 all that was gone. And started the real bubble which was debt-based. But remember debt is a two way concept (revenue and spending). Spending, except for 2009, was cut year after year, actually so fast that harmed the economy so drastically that the revenue was reduced even further (a bunch of nobel prize awarded people warned about how wrong this dogmatic austerity was). Here, the goverment deficit grew and to cover those losses they have to access the market, BUT unless the UK or USA where the house and finantial bubbles were at least as strong as in Spain, the latter didn't have any support of any Central Bank (quick remider, according to EU legislation this can't happen). So what happened by 2010, 2011, 2012, 2013 and 2014? Spain's deficit was more focused on paying the interests put by a market more interested, once again, in short-term greed than in long term rationality. This happened, remember, when countries were happily regarded as PIGS by Brittish and extreme-neoliberalist-populist media, and deemed (without knowing anything about the people lossing their jobs, households, families, lives,....) as worse than pigs by readers of those newspapers. However, neoliberalist dogmatic views starting to change by 2014-2015 and the ECB was kind of "allowed" to entervene the secondary markets, just as the BoE or the Fed did half a decade earlier. By 2016, the economy stabilazed and by 2017 was the fasted growing economy in western Europe, with better productivity than in 2008, with exports rising from 22% to 34% of GDP, unemployment decreasing from 27 to 13,8% (youth unemployement from 48% to 30%) and public debt finally sitting at 95,5% in 2019 from a maximun of 100,4% four years earlier, even school dropouts went from 31 in 2008 to 17% in 2019 (but with north atlantic regions and Madrid with figures bellow 12% in contrast to mediterranen and southern sitting at around 19%) and it managed to attract 700000 migrants, although most of them working in areas related to tourism. Also the industrial composition of IBEX35 went from almost only big banks, retail and construction- or tourism-related companies, to Tech, Biotech, Pharma or renewable energy companies, with much lower compostion of banks, in any case the former are not enough to substitute the levels prior to 2008. Now, the current crisis, is showcasing that Spain's tourism industry (which made only in 2019, 74bn euros) should not rely on low income Brittish, Germans, French,....which provide low income seasonal jobs and higher early leavers rates. Spain is clearly transforming its economy but at pace which will still take years to provide top notch jobs for many. Also needs to reform its labour market and not having super safe jobs for some and precarious for others. Finally, with most recent data, the GDP will fall somewhere between 10-11% (4 points more than the EU average) this year but is predicted to undergo a strong recovery later this year and the following ones.
Thanks for the detailed points! Commenting so this gets pushed up the comments section 👍
La única pega que tiene es la falta de párrafos, shift + enter ;). ¡¡Gracias por una información tan detallada!! ¿Como cojones tienes tantos datos en la cabeza sobre el tema?
This video is probably better than anything or most of what we see on Spanish media, so funny you say it is sensationalist and that it is british style, would you say Spanish media is sensationalist?
@@playerone6995 oh spanish media is crap, don't get me wrong. It has become toxic actually. But brittish media uses extensively eye-catching headlines,and exaggerations, it almost seems as if they were trying to sell you something instead of informing you. Although that's something that constantly happens in social media too. There is a clear lack of pause and reflection. Brettish media also have another problem, they are in the hands of very few. But in general, information in western countries has become something volumetric, where quantity has become far more important than quality. That's my opinion, I may be wrong but I'm glad you find it funny, I certainly don't. I think it's harming our democracies considerably.
In any case, the aim of my comment was not other than promoting better ways of conveying the story, which for the rest was executed perfectly.
@@AltSimplified @Juan Herrero This comment is objective and thought out, I can agree with this analyisis 100%, spot on! 👍👍
Nice narration..!! Wonder how the factors and figures can be tricky
Even though I have an exam tommorow, I feel watching this is more important :D
A wise choice.
@@AltSimplified by a margin
@@pseudoeverything1656 no diminishing returns here!
@@AltSimplified yes 😂😂😂
Its called procrastination
Spain is the most beautiful country in the world! 🥰
@Justin Case also beautiful not the most tho 😘
@Justin Case Portugal looks like Morocco
@@meilong2338 hahahaha cmmon man
Portugal is like spain... without our beautiful mountains
Excellent!! Thanks very much!
I own a place in Spain. The hoops you need to jump through are crazy. The French are well known for being bureaucratic, but Spain is on a whole other level. Paper forms in triplicate, rubber stamps on rubber stamps, VERY slow to get anything done. They have a massive public service and it just grinds. Almost nothing can be done online and that which can is insanely complex. They just need to modernise and learn from places like Estonia.
Just wait here in the US we’re heading to another real estate bubble burst. Can’t believe that here in California house prices are even higher than 10 years ago when we developed the crisis.
0:14 that's Zaragoza, my city. Great video!
Bro tenemos que ,votar q vox o pp psoe y podemos están hundiendo españa... y la gente ha esta diciendo que españa está undida como este vídeo como no votemos a pp o vox nos undimos más todavía
Hola compa
@@eldelfrente7312 Gane quien gane, tenemos que salir del euro y acabar con las 17 taifas
@@AnimationESP pero como quieres salir del euro tú estás loco jajjaaja
Minor correction: Savings Banks were administered partly by central and local government-appointed administrators. So the government did actually know about this housing and credit bubble as well as their revolving-door-pointed ex-politicians managing those construction firms, some of which escaped scot free from their bad decisions.
Another note: Spain relies more on tourism than France, accounting for about 5% of its GDP. This would be much more if we account all other sectors that depend on it.
Apart from that, very nice video! I'm Spanish and I can tell that you did an awesome work!
As a spaniard myself I am sad to say the future for Spain is grim, many people I know are leaving or want to leave, and I think it's for the best really
I don't know anyone in Spain who wants to go.
I know millions of people from Europe and other continents who want to come to Spain.
A street sweeper in Spain earns € 1,900 Net per month, has 4 extra payments per year, and works 7 hours a day.
A Teacher earns € 2,000 per month
A police officer between € 1600 to € 2,400 per month.
A house rental costs € 600 on average (Cheaper areas, others more expensive) Food is one of the cheapest in the West, Health is one of the best in the world, education is very good, you have a good climate .. people are positive compared to my country.
Honestly, I think that you need to travel a little and see the reality of other countries so as not to be constantly thinking the rest is better.
@@TheRaul45 in fact, I have lived in more than 4 different countries, including Greece, Germany, UK, Sweden and the US. I think you need to think things twice before assuming other people's opinions are based on ignorance rather than on their own analysis of the world around them. Actually, this is one of the things that I find fascinating with Spaniards, and part of the reason of their problems as well: they blind themselves with their own subjective opinions and prejudices that are unable to have a civil conversation without resorting to some kind of personal attack, even when ignoring completely the other person's life or experiencie for that matter
All these pictures of beautiful Spanish cities make me want to buy a house there though.
Yes, let's see when all remote workers from North of Europe will want to come to South countries.
@@PureAlbania Apparently this is already happening, as witnessed especially in the south of Spain, with cities such as Málaga really growing in the technology sector through remote workers establishing there. At the end of the day, it is a very nice area to live in, safe, good healthcare, nice weather, excellent food, landscape, and good connections with the rest of Europe.
@@carlosain the locals though
And you should. Pensioners from all over Europe flock there and spend all their money there. They rather live there than in Luton for example with it's sharia courts. Spain is nowhere on the brink of bankruptcy and this channel is, as usual, talking from it's ass just to roll out video's. For a channel that claims to explain economy they understand very little about the global economy.
@@kriskisbulck786 go to Turks and Caicos
Spain has a big cultural issue which politicians, mainly from the left, feed. A large part of the population is government employed, around 16% and there are around 9 Million pensionists, these 2 sectors are the only ones whose salaries stay the same or increase every year with Members of the Parlament as well obviously, from them is where PSOE gets most of its voters so their policies focus on having this people well fed increasing massively the amount of population dependant from government and the Public expenditure. 16.5% of the population is unemployed, with Prevision of increasing up to 20% as the crisis starts affecting more businesses, youth unemployment is a HUGE 44%....Out of 47 Million habitants, only 15 million work in the private sector, making 1/3 of the population sustain the salary of the other 2/3, something simply unsustainable. The affiliated per pensionist went down from 2.40 to 1.90, our pension system is only standing by issuing public debt. To put you into context I had to explain all this technical stuff, now imagine sustaining all this with one of the highest tax efforts in Europe. Self employed have so many impediments and high quotas here, Corporation tax is also very high, having no tax incentives for foreign investments. Is just a tax and bureaucracy hell. Personally I am 19 and I decided to study engineering outside of Spain and I’m planing to work outside Spain at least for many years, the brain drain is real so many engineers and other very qualified people are leaving!!! It’s quite a disaster, we need a radical change and stop maintaining the wellbeing of our politicians.
The populist policies of the government right now is one of the biggest issues to get out of this crisis, in my opinion.
More taxes, zero cuts and more expenses (a lot of them probably useless). A big debt crisis is looming. And add to this the problem of the unsustainability of the pension system. Painful reforms have to be made but politicians don´t have the courage.
La verdad que jode ver como juegan con nuestro futuro por ganar elecciones
It's really funny how you guys ignore that 2020 has changed the economic paradigm in the academy. Every major economic institution (IMF, ECB, etc), top level economic newspapers like FT or prestigious economy academics now recommend to increase taxes, rise the public spending to avoid the fall of the demand, and reinforce public services in order to reduce inequality. It's really obtuse to pretend economic consensus hasn't changed at all since 2008.
@@antoniopinerorobles1859 Increase taxes? I think if there is a consense between economist is that increasing taxes slows down growth, thats why all the economies are increasing debt but trying not to do the same with taxes (spain is the exception, why? because we are over indebted). Continuing with superfluous expenses or a bankrupt pension system is not good whether there is a crisis or not; and it´s no funny at all.
@@juan48485 Insisto, es sorprendente la absoluta ceguera ante los hechos y el intenso debate que se está manteniendo en la actualidad en el seno de la academia.
Desde el inicio de la pandemia, se habla continuamente de política fiscal expansiva, de la vuelta a la política industrial activa por parte de los estados, del fortalecimiento de servicios públicos esenciales como la sanidad (por motivos obvios), de la posible reversión de la deslocalización en la producción de bienes esenciales como mascarillas o respiradores, del fortalecimiento del papel de los estados en la economía, etc
Se ha mutualizado la deuda europea con la creación de los eurobonos, algo impensable en 2008, y las autoridades económicas están dando una respuesta absolutamente opuesta a la crisis financiera global de la pasada década. Incluso Schäuble ahora está de acuerdo con los eurobonos (www.ft.com/content/ba177185-90c6-41cc-8989-5efe77689392).
De nuevo, me parece delirante la disposición que muestran algunos a mantenerse impermeables ante los hechos y los datos.
Dejo unos cuantos links:
www.ft.com/content/7eff769a-74dd-11ea-95fe-fcd274e920ca
elpais.com/economia/2020-10-14/el-fmi-llama-a-subir-los-impuestos-a-los-mas-ricos-y-a-las-empresas-rentables-para-pagar-la-factura-de-la-crisis.html
elpais.com/economia/2021-01-25/los-economistas-de-davos-alertan-de-un-aumento-de-la-desigualdad-por-la-pandemia.html
@@antoniopinerorobles1859 No creo que nada de lo que comentas invalide, o por lo menos de gran manera, nada de lo que yo decía en mi primer comentario.
En cuanto a la deuda: efectivamente esta deuda común es un gran paso (o un gran alivio porque sino estaríamos ante una probable bancarrota), pero va a venir acompañada de vigilancia y parte de esa vigilancia es que no nos endeudemos más y reduzcamos el deficit (y la deuda). Porque si no exite tal problema de deuda por qué habría que tener cuidado con el deficit?. Esto nos lleva al segundo punto.
Impuestos: Como no quieren hacer recortes pues van a tener que subirlos. Y van a subir para todos: directos e indirectos. (Ójala solo se los subieran a los ricos...) Y eso es malo para la economía incluso desde un punto de vista puramente Keynesiano.
Pensiones: sistema quebrado, dicho por Europa y por cualquiera que sepa sumar. Y otro de los puntos que nos va a exigir reformar la UE.
Y en cuanto a las políticas populistas a las que hacía referencia pues me parecen claras (probablemente a ti no...y entiendo que aquí si que cabría debatir); pero básicamente gran parte del programa de gobierno que, precisamente por esta fiscalización por parte de la UE, no se va a poder llevar a cabo porque la comisión lo considera nocivo para nuestra economía.
Una cosa es que se haya decidido atacar esta crisis con políticas expansivas (emitiendo una gran deuda) y otra que no vayamos a pasar unos años jodidos y que no tengamos que atajar serias reformas en nuestro país. En mi opinión pensar eso si que tener una buena ceguera.
Pero bueno, al tiempo. Veremos lo que pasa, es posible que esté totalmente equivocado, por supuesto.
Really love your vids but you have the exact opening line to economics explained videos. Don't know who came first but you know numbers.
Spain my country my pride❤️... I retired at 35 now busy investing Forex/Bitcoin trading and Real estate. Life is good over here in Spain.
Spain is the best country in the world.
You can say that again my wife is from Spain. I so much love that country.
Have been to Barcelona twice now... Much love i got for Spain.
Speaking of forex trading it's the best business in the world right now. I know a couple of friends who make a whole lot of money trading the financial market.
Cryptocurrency is already taking over the world's economy. Bitcoin most especially.
I remember Top Gear going to Spain and finding a newly built airport that had never been used .It still is unused today. This should give you a strong indication of the financial thinking there !
Yes, there was big thought in all of that but only for short term political reasons (the 17 Autonomies playing who was the coolest) and politicians getting big bribes along the way. Same with the high speed railways and many other big expenditures. When people who vote are dumb its so easy for politicians to sell the whole country.
Hello Hanne, unfortunately there are more than one "ghost airpors" all around Spain, the problem starts with the bribery from the politicians and the lack of control from the central government. As members of the EU, Spain received founds from "European social founds" as a policy to develop the infrastructures in the country, unfortunately all this money was mishandled and wasted in useless faraonic projects by the politicians in the government at that time. They were subsidized by local government to promote low cost airlines to bring tourist to regions that were not having the resources to accommodate this kind of economic model. Result: massive clusterfuck.
check this link if you want to know a little more about ghost airports in Spain. 15mpedia.org/wiki/Lista_de_aeropuertos_fantasma
By the way, guess who bought these airports at 10% of the real cost to bring their goods and have their own chain of logistics and speed up the Custom process? China.
@@alexneverstop Believe me, the central government is the first one that spends all this money in useless stuff to get votes and brainwash people.
For example in the middle of this Covid crisis spending 127 millon € to pay the media to say good things about the government.
I am spanish, but i think we are doomed.
I believe that airport was in the region of Castellón, in the autonomous comm. of Valencia, which at the time was ruled by extremely corrupt politicians (most of them are now in jail or under investigations), they took unofficial payments by the building firm, (whose owners were often friends with the gov. of Valencia) and ballooned ridiculously the building costs (we are talking about a threefold increase in some instances).
hi hi ho ho
I am in Spain and for once I find that this analysis made abroad is very accurate and synthetic, yet it underlines the real problems of Spanish economy. Brilliant. The touristic images of Spanish cities don't bring any relevant information and seem merely decorative, but they don't hurt the discourse either.
Thanks Blas. Great to hear from a local 👍