Last week in
the USA I had the opportunity to see the first presidential debate between
president Barak Obama and candidate Mitt Romney. Although designed for a domestic
audience, some way into the debate the republican candidate mentioned Spain in
a very negative manner, in reference to government spending running wild. “I
don’t want to go down the path of Spain”, he said. This as there is constant
talk of a European bailout for Spain.
As a Spanish
tax payer for the last 23 years, this is very close to home. As this is my
blog, I’m going to vent my spleen and give my take on the situation.
I don’t want
to go over the causes of the current crisis in details, suffice to say that the
domino effect of the collapse of US investment banks, the rampant overbuilding
and over-lending from Spanish banks prior to this, plus a generation of
politicians of all denominations drunk on power who failed to save for a rainy
day in the boom times. When we add to this mix the blind faith in the European community
(let’s not forget the original design was for a trading area, not another level
of politics/gravy train), which was great while money was flowing south but bad
once it started heading east (our politicians lived splendidly, and continue to
do so, but now the funding isn’t there). Then the Euro came, and suddenly
rampant inflation as the price of a 100 peseta item became 1 euro (166 pesetas).
Spain suddenly became uncompetitive, and relinquished control over monetary
policy. The Spanish bubble, based on building, suddenly burst, leaving half
built property, massive unemployment, unpaid mortgages and banks with more
property of little or no value than actual money.
While this
house of cards was falling down, the then government still had its head up its
arse. Far from reducing spending, it constantly denied the crisis, rather
preferring to increase spending. It even created new ministries such as the
Ministry of Equality, designed to make sure that (as in the then government)
positions in business would be split on gender lines rather than on merit. A
sexist police, you could say. Totally unproductive. So government grew and
grew, creating masses of nice cushy jobs that only added cost and produced
nothing at all.
There were “jobs
for the boys” too. There are so many levels of government (Municipal, Regional,
State, European), and each municipal, regional, state or European politician
needs his quota of advisors and consultants. Another army of non jobs, costing
a lot, producing very little. Of course any councilor or senator worth his salt
loves a nice jolly away-day with first class travel, 5 star hotels and fine
dining, and of course must have all his staff come along. And he’ll need a nice
expensive official car (bomb-proof of course) and a driver to take him to and
from airports. Just so his town can be twinned with another for purposes of
whoknowswhat, or whatever else they get up to at my expense. Each politician
enjoys overblown benefits. Serve for one legislature and you have a life
pension. You also usually get a nice place on the board of a multinational.
Why? Well…..you have political influence. In exchange for money, of course.
Then there is
corruption. The map below shows cases attributed to each party (so many they almost don't fit). It just seems
that there is a culture of corruption being the norm, and they all have some
kind of shady deal going on. But when you see that the justice system, the
judges, are split down left and right political lines, it’s unsurprising that
rarely anybody get put in the slammer or obliged to return ill-gotten gains.
There’s a deal. I won’t lock yours up if you don’t lock mine up.
The blame
game is becoming more and more tiresome. Spain is bipolar, and depending on
which side of the fence you are on, you blame the other for everything. But
this is ridiculous. There are towns and regions ruled by all different
political parties. The state has swung between left and right. Everywhere is in
a black hole. So how can it just be the other sides fault? The only time they
ever agree on and have a unanimous vote, are when their own salaries are being
raised.
I saw the
other day that Germany has around 100,000 politicians and 90,000,000
inhabitants. Spain has around half the population, but an incredible 450,000 in
politics. Is it therefore any wonder that, when there are fiestas, each town
spends more and more on fireworks? (The Romans said “panem et circuses”. Bread
and Circus. The phrase is used to describe the creation of public
approval, not through exemplary or excellent public service or public policy,
but through diversion, distraction, and/or the mere satisfaction of the
immediate, shallow requirements of a populace). Or that nationalists are using
the plight of their own making (of course they point the blame elsewhere) to
stir up fabricated fervor for independence? This while all we hear is of cuts,
cuts and more cuts.
So, spending is being cut – cuts that
usually hit the needy. As a taxpayer I am happy to contribute to our welfare
state. I’m willing to pay for people in need and for whenever I may need that
service myself, infrastructure etc. etc. But when I see my income reduced
because of an income tax rise, the price of goods going up because of a new
rate of VAT, local poll tax going up by 10% a year, and that the Guardia Civil
seems to have been given the sole mission of emptying wallets for trivial
driving offenses, it becomes clear where the real issue is. Spain can no longer
afford its political system and its politicians. It’s too big, too costly, and
too much of an easy option for the lazy or shameless. Too much money and
influence, too little real work. Too much bla bla bla into a microphone and too
little substance. Too much blaming the other side. Too corrupt.
When the US presidential debate
finalized, I was left with the feeling that, although the candidates disagreed
on almost everything, there was a mutual respect, and a certainty that their
opponent, although misguided, did have the best interests of the country at heart.
I have not seen an incoming president place the blame for everything on his
predecessor. Not something I have ever seen in Spain.