Comments on: Out of Work: Lessons for Europe http://www.economicthought.net/2009/07/out-of-work-lessons-for-europe/ Thoughts on liberty Tue, 09 Mar 2010 22:45:19 -0800 http://wordpress.org/?v=2.9.2 hourly 1 By: Mal http://www.economicthought.net/2009/07/out-of-work-lessons-for-europe/comment-page-1/#comment-27 Mal Sun, 26 Jul 2009 17:54:31 +0000 http://www.economicthought.net/?p=49#comment-27 Ja, good point Ja, good point

]]> By: Sally Copperwaite http://www.economicthought.net/2009/07/out-of-work-lessons-for-europe/comment-page-1/#comment-22 Sally Copperwaite Fri, 24 Jul 2009 17:41:08 +0000 http://www.economicthought.net/?p=49#comment-22 The Spanish and the Irish have certainly handicapped their own economies with very high minimum wages and generous benefit packages for workers. However, being inside the strait jacket of the Euro has not helped them either. If they had kept their own currencies, the chances are that their own central banks would have set much higher short term interest rates than they actually had under the ECB. This would have acted as a restraint on the unbelievable housing bubbles that both economies have experienced. If they had kept their own currencies they would not now be facing unemployment figures of 20% and rising. The Euro, and the artificially low interest rates that went with it, has been a disaster for Ireland and Spain. The Spanish and the Irish have certainly handicapped their own economies with very high minimum wages and generous benefit packages for workers. However, being inside the strait jacket of the Euro has not helped them either. If they had kept their own currencies, the chances are that their own central banks would have set much higher short term interest rates than they actually had under the ECB. This would have acted as a restraint on the unbelievable housing bubbles that both economies have experienced. If they had kept their own currencies they would not now be facing unemployment figures of 20% and rising. The Euro, and the artificially low interest rates that went with it, has been a disaster for Ireland and Spain.

]]> By: Mal http://www.economicthought.net/2009/07/out-of-work-lessons-for-europe/comment-page-1/#comment-15 Mal Mon, 20 Jul 2009 17:47:43 +0000 http://www.economicthought.net/?p=49#comment-15 Good point Cat. I remember when I was doing an economics project on Spain, I saw how hard it actually was to fire ineffective workers due to the multiple severance packages that full-contract workers would get. If I recall correctly, Spanish companies were more willing and able to hire workers with contracts that are updated every few weeks because they don't get the employer-required packages which full-contract workers get. It happens that the majority of immigrants are working on limited contract basis because if worse comes to worse, the company can simply decide to not re-validate their contracts. Good point Cat. I remember when I was doing an economics project on Spain, I saw how hard it actually was to fire ineffective workers due to the multiple severance packages that full-contract workers would get.

If I recall correctly, Spanish companies were more willing and able to hire workers with contracts that are updated every few weeks because they don't get the employer-required packages which full-contract workers get. It happens that the majority of immigrants are working on limited contract basis because if worse comes to worse, the company can simply decide to not re-validate their contracts.

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