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Something wrong with the way we live

This recovery brings a model in which growth and income do not progress together

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Something wrong with the way we live

General economic situation after Great Recession: Spain now produces more goods and services than before crisis, companies earn 36 billion euros more, real wages have fallen by 7% and lower wages have been reduced by 22%. The figures were just provided by Secretary general of Workers ' commissions, Unai Sordo, at a recent union meeting. The trends are shared by most of agencies and economists who are involved in measuring situation: in last decade our country leaves with a more unbalanced economic and social structure.

Wrote historian Tony Judt: "There is something deeply wrong in way we live today (...) Much of what we find natural today comes from 1980s "[Conservative revolution] (something goes wrong, editorial Taurus). It refers to growing differences between rich and poor, to obsession with creation of wealth, to admiration uncritical by unregulated markets, to emergence of groups like precarious one or poor workers, etc. The correction of se imbalances should appear every year in state's general budgets, which define by ir nature project of country of presenter and of those who defend m.

The political opposition (PSOE and we Can) has presented this year very interesting alternative documents to project of budgets of PP. To question of how benefits of growth are shared, y believe that se budgets are far from common good because After losses were socialized during period of economic crisis, profits are now privatized and will not reach majority. They share idea that recovery has brought a new economic model to Spain: economic growth and income of majority of citizens no longer progress toger. Although gross domestic product (GDP) has reached pre-crisis levels, re is public spending and public investment that have not been recovered from cutbacks. The spending ceiling has remained practically frozen over last few years, to a level lower than before difficulties: rate of growth raised by budgets 2018 would take 40 years to recover ceiling level of spending prior to Crisis. A welfare state that is gradually shrinking and moving away from European levels in terms of fundamental public services, a low cost state closer to countries like Bulgaria or Romania, and in nothing comparable to average of European partners (" 38% "society"). According to Eurostat data, only 20% of population with most income has experienced significant gains since years 2007 and 2008, and in particular 10% of highest income.

The great Tony Judt also thought about this: why we have been so hasty in demolishing dikes that our predecessors so laboriously raised. Are we so sure that new floods are not coming?


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