Tuesday, January 18, 2011

Spain is so screwed!

Great chart from the Angry Bear Blog on the evolution of labor costs in the EU (clic the pic for a more glorious image):






The orange line that inexorably rises? Spain.

The green line on the bottom that ends up almost 30% below Spain? Germany.

Chances of Spain reversing this without years of economic and social pain given their membership in the Euro? Zero.


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2 comments:

  1. PLW9:29 AM, January 18, 2011

    Is this convergence? I'd like to see them not individually normalized. To be fair, I know bupkis about European labor markets, so maybe that's a moot point.

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  2. Anonymous11:48 PM, January 18, 2011

    Greece is more amusing to me. Spain has only a consistent systematic problem. Greece on the other hand, it makes me think of intermittent violence in the streets.

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