And that is the case despite the fact the only consequence for Spain today of being in the euro is that its interest rates are going back to what they would have been without the euro... In the long run, we're all dead. John Maynard Keynes
It sounds really good to say that labour mobility in the eurozone is low due to language difficulties and that this causes adjustment problems. Of course the reality is, both for Florida and Spain, the unemployed have nowhere to go, because nowhere in the Eurozone or the US is growing fast enough to soak up excess workers moving in from elsewhere...
I even pointed out the fiscal differences between the US and the EU in a comment to Krugman when he started saying that Spain was like Florida, but he didn't listen. En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
Otherwise (though he's right about the absence of fiscal and economic governance), Krugman seems not to realize workers are free to move, settle, and find jobs where they like in the EU.
Krugman:
social insurance payments would be coming from Brussels, just as Social Security and Medicare come from Washington
Out of the sky? Florida doesn't have to make any contributions? The US has miraculously become more welfare state than Europe now?
Right, because of, what was it that happened? A huge world bust caused by the American financial system -- or was it the Euro?
A Majority Of States Are Now Insolvent: Quantifying The Disastrous Unemployment Situation Zero Hedge
Did I mention I miss my TribExt? En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
despite the crash whereas the very real prosperity brought about by the euro (infrastructure investment, growing wages)
Are we talking about Spain or in general? Wait this is important. Someone is wrong on the Internet.
