It's disgusting that the biggest parties of Spain, Popular Party (PP) and Socialist Party (PSOE), they seem more concerned with issues of corruption discredited that to reduce the number of unemployed. The most disheartening thing is to see their ineffective policies to overcome the crisis, which led us to have nearly 5,000,000 unemployed in Spain and more than 500,000 in Valencian Country.
The PSOE had initially decided to fight the crisis by increasing public spending to create jobs and pay subsidies to the unemployed. Subsequently, PSOE has made a shift to neoliberalism, cutting public investment and privatization of profitable public enterprises to raise capital.They have also increased indirect taxes such as VAT and they donated money to the banks without any compensation. The consequences all know, more than 21% of Unemployment.
The proposals of the Popular Party are equal or more worrying than the Socialist Party's proposals. For PP, the whole crisis is the fault of ZP and they forget they govern too, for exemple in Valencia, where the economic situation isn't any better. Their proposals are to lower taxes, lower the cost of firing workers and reducing public investment. PP try to carry out the same policies that made its model of government, Ireland, which it was in crisis and it had to be rescued urgently by the EU and the IMF.
The U.S. and advanced countries have taken the same economic policies to combat deflationary crisis since World War II until today. These anti-crisis policies, the economist Paul Krugman has been labeled the "Keynesian compact", are to reduce interest rates, lower taxes and increase public investment. However, the EU is breaking the pact recommended raising interest rates, increased indirect taxes, direct tax cuts and cutting public investment.
European neoliberal system is exhausted and feels powerless against the Chinese model of mixed economy. Angela Merkel proposed tying benefits to wages to increase European competitiveness and productivity. The idea would be good if the business results weren't so easily manipulated. Thus, we can only ensure that the private benefits passed on to employees if the owners and partners are the workers themselves. This economic model is called social economy or the "third sector".
Business formulas are the "third sector" are cooperatives, worker-owned companys, workers mutual companys, companies employability, special employment centers and fishermen's associations. Companies as a Eroski group, Fagor, Caixa Popular, Caja Laboral, Consum, Irizar, Lagun Aro, Edesa and Abacus are examples of the success of this alternative and more democratic model of social enterprise.
Other virtues of the social economy are the creation of stable jobs and rooted in the local area, avoiding the industrial relocation. They also have better resistance to shocks due to its adaptability to adjust production, redistribute the number of hours or wages change. Internal democracy creates a culture of accountability and risk sharing in the social economy does not exist in the neoliberal model, as indicated by José Luis Monzón, Professor of Applied Economics at the University of Valencia.
In conclusion, the social economy isn't a utopia, rather it is the alternative to neoliberal capitalism in crisis. It Already provide in the Spanish state 2.5 million jobs and are 10% of GDP. So then, I have clear as can the private sector out of economic crisis.
The PSOE had initially decided to fight the crisis by increasing public spending to create jobs and pay subsidies to the unemployed. Subsequently, PSOE has made a shift to neoliberalism, cutting public investment and privatization of profitable public enterprises to raise capital.They have also increased indirect taxes such as VAT and they donated money to the banks without any compensation. The consequences all know, more than 21% of Unemployment.
The proposals of the Popular Party are equal or more worrying than the Socialist Party's proposals. For PP, the whole crisis is the fault of ZP and they forget they govern too, for exemple in Valencia, where the economic situation isn't any better. Their proposals are to lower taxes, lower the cost of firing workers and reducing public investment. PP try to carry out the same policies that made its model of government, Ireland, which it was in crisis and it had to be rescued urgently by the EU and the IMF.
The U.S. and advanced countries have taken the same economic policies to combat deflationary crisis since World War II until today. These anti-crisis policies, the economist Paul Krugman has been labeled the "Keynesian compact", are to reduce interest rates, lower taxes and increase public investment. However, the EU is breaking the pact recommended raising interest rates, increased indirect taxes, direct tax cuts and cutting public investment.
European neoliberal system is exhausted and feels powerless against the Chinese model of mixed economy. Angela Merkel proposed tying benefits to wages to increase European competitiveness and productivity. The idea would be good if the business results weren't so easily manipulated. Thus, we can only ensure that the private benefits passed on to employees if the owners and partners are the workers themselves. This economic model is called social economy or the "third sector".
Business formulas are the "third sector" are cooperatives, worker-owned companys, workers mutual companys, companies employability, special employment centers and fishermen's associations. Companies as a Eroski group, Fagor, Caixa Popular, Caja Laboral, Consum, Irizar, Lagun Aro, Edesa and Abacus are examples of the success of this alternative and more democratic model of social enterprise.
Other virtues of the social economy are the creation of stable jobs and rooted in the local area, avoiding the industrial relocation. They also have better resistance to shocks due to its adaptability to adjust production, redistribute the number of hours or wages change. Internal democracy creates a culture of accountability and risk sharing in the social economy does not exist in the neoliberal model, as indicated by José Luis Monzón, Professor of Applied Economics at the University of Valencia.
In conclusion, the social economy isn't a utopia, rather it is the alternative to neoliberal capitalism in crisis. It Already provide in the Spanish state 2.5 million jobs and are 10% of GDP. So then, I have clear as can the private sector out of economic crisis.
ELOI POMAR TIMONER
(Historian of economics)
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