Week 12

The Worst Unemployment Crisis In Modern History Is Unfolding Right Now

Business Insider
By Matthew Boesler
May 6, 2013
http://www.businessinsider.com/spanish-unemployment-crisis-2013-4#ixzz2Tjtrfm3I

Summary:

At 27.2%, Spain is suffering the worst unemployment rate in modern history. Spain is tied with Greece, and is worse than the approximately 25% unemployment rate that the U.S. saw during The Great Depression. The causes, by now, are familiar — the end of a massive, bubble-fueled construction boom in 2008 led to spiraling unemployment and a deep recession, wreaking havoc on the Spanish economy. And although the country managed to return to marginally positive economic growth in 2010 and 2011, it has since slipped back into recession, and the outlook isn't good.

Opinion: 

The problem is compounded by the fact that Spanish businesses are closing their doors at a record pace. In January, there were even two cases of men who set themselves on fire. At least one of them was reported to have lost his job and was facing financial issues. This is the environment from which those in Spain are actively attempting to escape. During the good years, Spain experienced a swelling population as immigrants came to fill the excess of employment opportunities caused by the Spanish construction boom. However, the population outflow isn't just former immigrants turning into emigrants. As we learned in economics class this week, unemployment brings lots of negative consequences. Spain should recover its economy to expansion.