Good grief no wonder Spain started to become a basket case!!!
As some of my readers had pointed out, the Spanish people are not lazy like the Greeks and they do work hard. To date Spain has not gone the same way as Greece, Ireland and Portugal, but it is on the precipice. Spain has gone from a booming economy to one that has been a bit of a disaster in the time span that Zapatero has been Prime Minister. At the weekend Zapatero’s Party was given a good kick where it hurts the most at the polls. They did not fare very well in the regional elections.
In taking up the story about Spain, the UK Guardian has up an article on what their writer thinks went wrong. The writer seems to have the delusional idea that Keynesians are always correct in their analysis and policy prescriptions. Obviously the writer knows nothing about the causes of the stagflation in the 1970s, because the failure of the Keynsian type policies are directly linked to that stagflation.
What really struck me about this article is that it seems that Zapatero took advice from the failed and ultra left-wing Marxist economist Paul Krugman. Good grief, no wonder the Spanish economy has been doomed. The Krugman prescriptions are an absolute disaster.