Two days ago I got a text from a friend. I looked at the screen, flabbergasted and in disbelief. Quickly checking all the major newspapers, I found out that, indeed, what I had read was true: new figures show that back home nearly four in seven young people are out of work, as well as one in four adults. As you may have already guessed, home is Spain.
Desperation is all around, of course, and not just for the unemployed. Workers are in deep trouble too. More taxes, less social benefits, high levels of debt, no job security, and very low wages… think of it in terms of demand and supply. There is much labour supply and seldom demand, so the equilibrium level plummets. Not only is it likely that you can’t find work, but even for those who have, it is increasingly difficult to make ends meet.
Due to a long-term subsistence benefit program, capped at £340 a month, most people in Spain are able to purchase basic food and clothing. Whilst alcohol and tobacco may be cheaper in Spain than in the UK, as probably many readers know, groceries or house bills are not. Such a situation would be unsustainable in Britain. So why is Spain is not starving, or at the very least, rioting?
There are a few key differences between both countries, allowing this seemingly ridiculous unemployment rate. Firstly, estimates show that Spain’s underground economy may account for up to a fifth of the country’s GDP; a figure that reaches well into the billions of Euros. When you find a job, it is not unusual to ask, “is it with a contract?” as getting paid in cash without declaring it to Social Security carries little taboo. This allows potential employers to save on tax money and to pay less than the minimum wage. After all, there is so much labour supply that some people are willing to work, even if it’s for free.
Secondly, and this is perhaps the main difference, back home there is an extended family network which seems almost non-existent in Britain. Many families live on their elders’ pensions and social norms dictate families to support one another: siblings, children, parents, cousins, and even close friends in many cases. In that sense, Britons are much more individualistic. Given Spain’s rate of unemployment, many Britons would starve to death.
Thirdly, rural areas are more affected than cities. Rural villages tend to be tight knit communities in which everyone knows everyone and gifts of one’s own work (fruits and vegetables from a field, animals from a farm, etc.) were very common, even in the prosperous years. Most city inhabitants have rural roots also, so such a safety net is present when times get tough.
It is also worth noting that solidarity campaigns are much more common back in Spain. Spaniards do not have the same relationship with charities as Britons (indeed, it took me a while to understand the point of RAG), but the social compromise towards domestic needs is very high. Organisations such as Caritas work closely with Social Services to provide for those most in need, regardless of religion and race.
These differences in attitude can be accounted to the fact that Spain is a relatively young democracy. A few decades ago, poverty was the norm. My own grandparents experienced hunger in the war and post war period, and even my parents grew up with just about enough to have food on their plate. It is thus easier for us to go back to poverty since, unlike the UK, we have not had time to grow accustomed to affluence. This awareness of poverty’s horrors also make Spaniards all the more sensitive, hence why, despite our economic woes, we are poor but not starving.