Tuesday, April 7, 2009

White Chocolate Cigarellos Make

A crisis of some innovative government

hoped Zapatero government crisis delayed until after the European by that which the responsibility of the likely loss should be allocated to an outgoing government rather than a brand-new. So I was glad when I found out that it had decided to advance it. I was glad it is the first action to restore consumer confidence that the government carried out since the Plan E, and as I mentioned in another post believe that the loss of consumer confidence is one of the root causes that keep the English economy the vicious circle of job losses.

However, I had high expectations regarding this crisis of government, and it has some successes, overall I was pretty disappointed. I think it offers more of the same, and does not give a real sense of action and change of face to convey an image of control of the situation.

Solbes substitution seems a necessary evil, the input someone new to run the economy will tend to give more confidence to people, and I like that choice has a strong technical background like Salgado, although I would have preferred to see Jordi Sevilla take the reins of the economy.

Bernat Soria output disappoints me, was one of the few ministers who had the technical government within its area, and I think I was doing a bad job. Trinidad Jiménez get a ministry for their political support to Zapatero since its inception, which was why he had gotten the Secretariat of State for Iberoamerica initially. Great aptly

Angel Gabilondo for Education Minister and I'm glad to see Chaves in territorial cooperation, but politically I think it can end up costing Andalusia in the next regional. I think both can do a good job in these functions and throw exactly the message that now the government must give the man his technical background and the other by the message of social cohesion.

's appointment Angeles Gonzalez-Sinde leaves me indifferent, because, as I will discuss in brief, I would remove the Culture Ministry and the appointment of Joseph White seems a real shame. Pepe Blanco has its role as a hound dog, and then fails, give it a ministry is like when Helmets was a minister, or even worse, at least Helmets industrial era. Besides a ministry does not give anyone, not in the midst of an economic policy based on Keynesian stimulus plans given the ministry of Public Works is one of the most power will have. Put forward a White Building is sure to be accusing the government of using political money stimulus plans. That's not the message. Development should be in the hands of someone who either had a strong profile manager, or come from private enterprise.

Finally, it is disappointing that Zapatero has decided to maintain the number of ministries. This was the time for a drastic reduction to release the message focus and efficiency. In my opinion, Social Affairs to health spending makes little sense, I personally would have formed the Ministry of Labour and Social Affairs, and had integrated in the same ministry of Equality. It would also have done away with the Ministry of Housing, and according to the message I would like to launch what would have done well in either Development Work and Social Affairs. The first case that the government believes that we must continue helping the construction sector to slow his fall, and second if you fail to invest more money in that sector. Also had integrated the Ministries of Education and Culture under Angel Gabilondo, especially to send a message of austerity and to approach economic clearly the government in the face of the crisis.

As I said, there are scores in the changes, and I'm glad you brave enough to advance the changes to the election, but I think we should have risked a lot more and do a more radical reform and more technocratic rather than surround his closest friends in government.

Wednesday, April 1, 2009

Persephone Acrostic Poem

The second industrial restructuring

This month and next will be able to measure the effectiveness of Plan E to halt the decline in unemployment. Plan is a bit innovative in the sense that simply implements recommendations of the IMF and its purpose in the English case is merely palliative and that, contrary to what happens in other countries like U.S. or UK crisis English is much more structural than financial. As I see it, the only objective is to try to fill a brutal drop in demand, and simultaneously solve part of the problem of funding that municipalities have been found to fall construction. What is palliative

not imply that it was not necessary, the state could not afford that unemployment continued to fall at that speed without compromising the entire system of social insurance, therefore, I do believe it was necessary to pull the deficit and cover the fall of market demand. However, palliative care are not sufficient to start the road to recovery, so it is surprising that neither government nor the opposition have been submitted to parliament debate on structural reform plan in which the state must play a key role in both investment and regulation (or deregulation).

If the government wants to weather the crisis with palliative care without taking risks, I think the recovery will be very long. In Spain there is little investment culture of risk by the private sector will be difficult for "market forces" do we get out of the crisis with a competitive and diversified economy, rather I believe that it is done, we will leave when Germans come to spend the summer back to Spain.

I think Spain needs a new industrial restructuring to create and strengthen high value added businesses where we are internationally competitive, something virtually nonexistent within the existing industrial mix English. The mission of government should be to create an export industry based on technological differentiation and not a cost competitive advantage. The industry should help balance the English balance of payments and diversify an economy based on tourism and construction.

Given the delay that Spain has in most sectors, the emergence of this industry will require government subsidies, either in the form of direct payments (and often defend certain progressive) or in the form of tax cuts for the Irish (as some conservatives like). In fact, there are more than differences of form, in both cases the money ends up in companies that seek to support.

I'm not asking the government to put all your eggs in one basket, that's not a state itself must take the long view, but in a few, and especially in those sectors where Spain is emerging competitive (such as be renewable energy) and in sectors with high added value set (such as the software industry and the semiconductor industries in both average net profits above 20%). I think that with the help of government, Spain can compete in these sectors also established to facilitate the arrival of existing businesses and the creation of new businesses.

Additionally, CDTI, or at least a part of it should move away from its traditional role and move to become a venture capitalist, a sector that is still quite weak in Spain (though improved somewhat over the years profit). I do not mean current programs soft loans to new businesses or simple systems with very limited funds incubator, but a true Venture Capitalist to the Silicon Valley, you can put 5 million euros on the table if necessary, and possesses the corresponding percentage of the company. Many of these projects go wrong, and in some cases 11 months later Google will buy more than 1000 million and offset heavy losses. But in either case, the main objective is not so much profit (which can and should get), but the creation of companies to compete internationally and not just local.

are changes that have been pending since 2000, and that budget level would have been easier to do then than now when it will increase the deficit. However, there is a positive side that these changes are addressed at present is that the gravity of the situation may allow them to question unless measures riskier plan.
Extraordinary circumstances require extraordinary measures, and the fact that simply can not accommodate the boom can help that this time they face this second industrial restructuring that so many have been claiming for years.

Update: Another 100,000 more unemployed in March, this is a disaster. If it increases again in April 100 000 case and make me buy more guns.