Spanish unemployment hits record 5.64 million

[mrypg9]

Originally Posted by maxd

Mary you really do not understand our business model. We have huge fixed costs by renting buildings at market rates and then make a premium by renting it out nightly.

We will have been in business in Spain for 10 years come next March. Our business has been around since 99 in Europe. Our volume has been increasing year upon year.Contrary to what you say the short term rental business is experiencing a bit of a boom. People are fed up with pricey city hotels when they now know you can get 80m2, sleep more people with more privacy. This sector really is on fire now.

I know you are having a dig because you like a cyber fight, but your facts are pretty far from the truth.

You also seem to think that we shirk our responsibilities. You should see our monthly VAT bill/Social along with the 100k we paid out in serverance pay. We do more than enough to pay for the unemployed thanks. As well as keeping dozens of building owners happy through renting, all thorugh the books I might add.


I think you could be referring to me mentioning previously that I do not mind paying workmen cash in hand for private jobs. Yes, guilty as charged for a private job around my house, I could get a receipt for my business and claim it back anyway.

On the whole we are wealth creators and give vast amounts to society, so no lectures on contributing to society please. I am fed up with governments being in our pockets all the time.

As for people not travelling, people always take their holidays. You should see Prague today, an absolutely insane amount of people here. I think we are lucky in that respect, we offer more space for less money and in the current climate people need to look at the pennies.

You miss the point, max, which is that your model is extremely vulnerable to market fluctuations and that the current economic model is not one that is indefinitely sustainable.
You say you contribute to society yet you complain about social costs so I guess you don't do it wilingly....although I guess you are not alone in that. I also remember some of your previous posts where you explain how you should avoid tax due by operating in lax east European tax regimes.
Facts show that people do not always take their holidays. Foreign visitors to Andalucia are down by 10% in the first few months of this year. If you object to what you call 'generous' welfare payments (millions of Spaniards would disagree with you) you must admit that your potentialcustomer base is going to decline.
There will always be a large amount of people in Prague because it specialises in cheap no-frills tourism..stag parties and the like. Much of the apartment accommodation in Prague caters for that kind of market. Cheap and cheerful. I prefer a good class hotel but I can see the attraction for many people.
But my post wasn't about your business model. I'll give my opinion of your business model when you've been trading for twenty years not twelve...My point is that the current economic philosophy which you have said often you admire and support isn't working. As you pointed out, one in four Spaniards is unemployed although as you also pointed out in your estimation 30% of economic activity goes unaccounted for officially which in your post you seemed to approve.
An economy where one-third is under the radar isn't a workable model.
Taxation pays not only for unemployment pay but also for infrastructure...the airports the budget carriers use, the roads your clients travel on, the health services that keep people fit and healthy enough to be able to plan and enjoy holidays.
Ordinary people in the UK and Spain cannot be expected to continue making sacrifices regarding pay and the social wage. Wise politicians know that the days of the free market are coming to an end.
It is highly unlikely that the EU as we know it today will exist in ten years time. I wouldn't have thought that a year ago but I do now.
We need to get back to a rule-based economy with restrictions on trade, capital movements and free movement of workers. We need to get back to the basic economics of making things.
Service sector businesses like yours have a symbiotic relationship with a manufacturing -based economy. They bake the cake, you put the icing on it. Both need eaxh other.
But unless we see a radical change of economic philosophy in Europe there will be no cake to put icing on.

[Hepa]

The financial advisor that I use has advised me to remove all financial equities out of Europe and invest in other markets. We are accepting the advice.

[mrypg9]

Originally Posted by Hepa

The financial advisor that I use has advised me to remove all financial equities out of Europe and invest in other markets. We are accepting the advice.

Sensible advice. Unemployment is increasing across Europe, the peripheral EU economies are either insolvent (Greece) or seriously illiquid (Italy, Spain, Portugal -the latter possibly also insolvent).


Something's got to give. You can only squeeze people to a certain point. I think that point is being approached in more than one EU state.

I note that Osborne is using Fox to soften the British public for more cuts, more unemployment, a lower social wage.

And to what end? Who will benefit from this austerity?

No prizes for a correct response as the answer is so bleedin' obvious...

[carrinto]

So let me understand this, there is a huge economic crisis intensifying in Europe so move into equities 'elsewhere' presumably those 'elsewhere' economies are to some extent dependent upon exports to Europe yet they are the places to shift your equity investments. I have yet to meet any financial adviser who knew that much about emerging economies, other than to pretend they do to encourage you to part with your money. Of course he can't lose, indeed he gains the more advice you need and the more your investments are moved around the more they earn. I suggest you invest in some investment houses and financial advisers. Shouldn't you be questioning equities rather than geographic considerations

[mrypg9]

Originally Posted by carrinto

So let me understand this, there is a huge economic crisis intensifying in Europe so move into equities 'elsewhere' presumably those 'elsewhere' economies are to some extent dependent upon exports to Europe yet they are the places to shift your equity investments. I have yet to meet any financial adviser who knew that much about emerging economies, other than to pretend they do to encourage you to part with your money. Of course he can't lose, indeed he gains the more advice you need and the more your investments are moved around the more they earn. I suggest you invest in some investment houses and financial advisers. Shouldn't you be questioning equities rather than geographic considerations

Not quite sure what point you're making.

Some economies are doing very nicely, thankyou, with no great dependency on Europe. India, China, Brazil, Singapore, the South-East Asian economies...in fact any economy that hasn't implemented the Anglo--Saxon free market model has shown growth.
Not sure how you would separate equities from geographical considerations..

[Hepa]

14% gain in the last few years.

I think I will stay with my adviser

[mrypg9]

Originally Posted by Hepa

14% gain in the last few years.

I think I will stay with my adviser

So would I if I got that return on my money.

[jimenato]

Originally Posted by Hepa

14% gain in the last few years.

I think I will stay with my adviser

Who is it? (or it isn't true)

[gus-lopez]

Originally Posted by xabiachica

a maximum of 2 years dole - many get much less, I think you have to have worked for 6 years in order to qualify for 2 years paro - & they only get something if they were lucky enough to have had a contracted job

if you were self-employed I believe you get nothing

how much is the social minimum & how do you qualify?


I'd be interested to see a link

http://ec.europa.eu/employment_socia...20Spain_en.pdf

Chapter X

Maxd, it's worse than your initial post. Of all the legal autonomo's , small sl's that I used to deal with , 75% of the work done doesn't go through the books !
Until they sort ot the ridiculous amounts payable for soc.sec. then the situation is going to continue.
I could pick up a small amount of work but would only do it legally. Why would I work to pay the government 67% of the income ?

I personally know of Brits earning around 1k monthly all cash , others who are legal where only the absolute minimum goes through the books, & Spaniards ; well the list is endless ! One I know generates 3k a week from spring until late september , & disappeared off the radar 14 years ago. Makes you wonder why they don't question what all these people live on who aren't employed or unemployed ?
Personally I think that at least 75% of the economy around here is off the books !

[MaidenScotland]

We have advertised a job which no one has applied for.
A friend asked me about a job for his sons girlfriend last year and twice he has assured us she is going to call up and see us..she has never appeared.
Yes it makes me wonder if the figures are correct..