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Spain Economic Issues

In: Business and Management

Submitted By dkgano
Words 1428
Pages 6
Spain's
Economic
Crisis

Jim and Derek

Macroeconomics

21 November 2011

Spain’s unemployment rate is at 20%, which consists of 45% among young adults 25 years old and younger. Banks keep getting bailouts from the European Central Bank, real estate values and sales have plummeted and there is a budget deficit that is spiraling out of control. There are many contributing factors as to why Spain got themselves in this amount of financial trouble. However one might ask, how did Spain get into this predicament?
The history of Spain is a big factor that contributes to their economic troubles even today. Spain began its momentum towards becoming an empire after the expulsion of the Moors in 1492. King Ferdinand and Queen Isabella funded Cristobal Colon’s expedition which found the “New World”, where Spain would reap the riches of gold and silver. These riches helped Spain build up its navy for its many wars with England. This wealth also paid for more expeditions of discovery and Spain’s overall improvement in their standard of living. Like many great empires, this prosperity did not last and through financial decline this prosperity died, as did the empire. Most of Spain's civilization remained poor until after Francisco Franco, who came to power during the Spanish Civil War, died in 1975 and the exiled King Juan Carlos returned. Juan Carlos began the transition to a democratic state and ensured that Spain would prosper from a democracy and a capitalist system. Spain began crawling its way up but still remained one of the poorest nations in Europe.
The dominant powerhouse economies of Europe have always been those of Germany and France. As a result, the bloodiest conflicts of the twentieth century have centered on these countries dragging down with them the other European nations aligned with each side respectively. The European Union was conceived, in the...

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