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No, they have low productivity.

Relative to Germany, Spain has low wages and longer working hours, but inefficient or deficient physical capital.

Relative to China, Spain has high wages, shorter working hours, and possibly better physical capital.

Germany wants Spain to deflate wages to the level of China or export its qualified workforce to Germany so wages there are depressed.

Spain should like to have its capital base improved to improve the productivity of its workers.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker

by Migeru (migeru at eurotrib dot com) on Wed Dec 14th, 2011 at 07:14:09 AM EST
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