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Founders Radar's avatar

What’s striking is the disconnect between GDP growth and the financial wellbeing of households. Despite a booming economy, the younger generation is facing stagnating wages, high unemployment, and crippling housing costs. To make things more complex, while retirees are enjoying significant increases in income, the youth are being left behind... a clear example of the generational divide that's been exacerbated by politics. As you pointed out, the aging electorate plays a crucial role here. Great article, Pieter.

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Pepe Rodríguez's avatar

Great debunking of the narrative. But as the article says, Spain has plenty of potentials, and there are several straightforward reforms that would greatly improve its outlook, in areas like pensions, labour law or zoning. Unfortunately politics is not helping here.

The most recent example is a reform proposed to national zoning law that would allow local councils to easily amend their zoning plans to fix errors, which would avoid much of the uncertainty that surrounds construction, ultimately making construction easier and cheaper. Despite both the main government and opposition parties supporting this reform, it has been rejected several times in Parliament, because the government does not see fit to negotiate with the opposition and the opposition prefers to inflict small defeats to the government. Does anyone have any suggestion to overcome this type of gridlock? I like the idea of "Secret Congress" by Matt Yglesias, but I don't know if it can be translated to the Spanish context.

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