Sánchez governments' record: growth and jobs leader, but housing and inflation drag
Spain's economy has finally matched its 2008 GDP with record employment, yet housing and prices are squeezing stagnant wages. The key takeaways.
English · Original discussion in Spanish · Published
Pedro Sánchez's governments have delivered notable economic and employment growth in macroeconomic terms, but have failed to solve structural problems such as housing, inflation and inequality. Growth no longer translates into pogre for the majority.
The Spanish economy has closed a cycle with an uncomfortable paradox. The macroeconomic figures are there: the country leads growth among Europe's large economies and employment is at record highs. Yet in the very year that GDP seems to have finally caught up with pre-2008 levels, the dominant feeling is one of stagnation. The gap between the headlines and what people experience at the supermarket checkout has become the defining antiestéticature of the period.
## Growth that doesn't reach everyone
Economic growth no longer automatically translates into pogre. It often translates into incomes and privileges concentrated in the hands of a few. Relative inequality has increased while society drags along the accumulated exhaustion of several successive crises. Natural population growth is negative and is offset by immigration, which, together with mass tourism, is replacing the old neighbourhood support networks.
## Housing and inflation: the beam dividing classes
The cost of living is squeezing stagnant wages. Supply rigidities and excess money supply have fuelled an inflation that hits hardest those with the least margin. Housing has become the beam separating the middle class from the lower class. Mass tourism is imposing growing externalities on the urban landscape and on residents' living conditions.
## The transformation of work and the political landscape
The rollout of artificial intelligence is rapidly transforming work and the urban landscape. That discontent has, paradoxically, given wings to the opposition's deregulatory and renationalising agenda, more in tune with the liberal-conservative wave circulating on the internet. The spirit of the age seems to demand change in Spain, while in South America leaders promising aggressive cuts to public spending, security and a tough line against the opposition are consolidating power.
The Spanish economy has closed a cycle with an uncomfortable paradox. The macroeconomic figures are there: the country leads growth among Europe's large economies and employment is at record highs. Yet in the very year that GDP seems to have finally caught up with pre-2008 levels, the dominant feeling is one of stagnation. The gap between the headlines and what people experience at the supermarket checkout has become the defining antiestéticature of the period.
## Growth that doesn't reach everyone
Economic growth no longer automatically translates into pogre. It often translates into incomes and privileges concentrated in the hands of a few. Relative inequality has increased while society drags along the accumulated exhaustion of several successive crises. Natural population growth is negative and is offset by immigration, which, together with mass tourism, is replacing the old neighbourhood support networks.
## Housing and inflation: the beam dividing classes
The cost of living is squeezing stagnant wages. Supply rigidities and excess money supply have fuelled an inflation that hits hardest those with the least margin. Housing has become the beam separating the middle class from the lower class. Mass tourism is imposing growing externalities on the urban landscape and on residents' living conditions.
## The transformation of work and the political landscape
The rollout of artificial intelligence is rapidly transforming work and the urban landscape. That discontent has, paradoxically, given wings to the opposition's deregulatory and renationalising agenda, more in tune with the liberal-conservative wave circulating on the internet. The spirit of the age seems to demand change in Spain, while in South America leaders promising aggressive cuts to public spending, security and a tough line against the opposition are consolidating power.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (8 replies).
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