Spain–A lesson on how the left destroys an economy
This report from the BBC indicates that the Spanish Prime Minister Zapatero will not be seeking re-election. Spain is one of the PIGS nations, which has been on the brink of financial collapse. This had been caused by taking out Euro loans to pay for infrastructure spending. For the time being at least Spain has weathered the crisis. However this crisis is not over.
The BBC reports the following:
He became Prime Minister in 2004 in the wake of the Madrid train bombings.
Spain’s economy was booming then. It has since suffered a deep recession, and unemployment is at 20%.
As far as economic indicators are concerned, the items missing are the inflation rate and the interest rates. These indicators would give a better idea of whether or not Spain has entered a period of stagflation.
The point to be made here is that when Zapatero took over in 2004 the economy of Spain was booming. However, the impact of the socialist government of Zapatero, complete with out of control government spending, as well as other factors, including a problem with illegal immigration from Morocco, Spain’s economic outlook has deteriorated. One can quite easily argue that the lesson from Spain’s decline into recession when it had been booming is that the socialists tend to destroy the economy with their profligate spending.