Spain – who’s to blame?
I’ve noticed a blame game going on in one of the online comments sections…as in, who’s to blame for the Spain’s youth unemployment crisis. There are fingers pointing at socialist policies, unions, etc. It’s worth pointing out that the restrictive contract system has been in place for 30 years. It has been sustained by both conservative and left leaning governments.
Its historical roots can be traced to the fascist dictatorship that ruled Spain from 1939 to the mid 1970′s, as Prof Gayle Allard explains.
Spain’s Pain, Explained
With a youth unemployment rate of 55.9%, Spain is a worst case scenario getting uglier by the month. A housing bubble triggered the crisis, but the roots of the problem are historical – a labour contract system that creates two classes of employee. You’re either protected and or temporary. Guess which category young workers fall into?
Listen… as Gayle Allard, professor of economics at IE Business School in Madrid, explains.
Coming to the Toronto Star on Dec 8, 2012…my on the ground report about what’s happening to Spanish youth.