In Spain they’re demonstrating against unemployment, presumably private sector unemployment. But from what I gather from the news article on it, these aren’t Tea Party types. Instead they’re big-government types who embrace the welfare state.
Yet it’s the welfare state that’s causing the 21% unemployment rate in Spain, and 42% unemployment rate for those ages 15-24.
People who complain about unemployment are essentially lamenting the fact that there aren’t enough entrepreneurs and business people willing to take the enormous risks and go through the enormous hoops in order to try to hire a worker.
It’s really tough to hire and/or maintain a worker when you don’t know when, or from where, the revenue is going to come in to pay that worker. And you have to come up with a viable idea in the first place – something that people are going to want in exchange for their hard-earned money – in order to generate that revenue. That’s one tough endeavor, and most people don’t have the ability or willingness to do it. Most people rely on a tiny minority of people, called entrepreneurs, to go through those enormous hoops in order to generate the employment.
So if the welfare state is massive, with high taxes and stifling regulations to disincentivize entrepreneurs and business people, then unemployment is going to be high. What the protestors should be protesting is the welfare state.
Their intentions are to reduce unemployment. Their actions exacerbate it. And they don’t realize the irony.
There’s an election in Spain tomorrow. One protestor, who previously supported the Communist-led United Left, says she’s going to change her vote. Away from the far left? No, according to a CNN report. To an even more leftist party, she said.
Actually I didn’t think you could get more leftist than that. But apparently in Spain, you can.