Another View of Spain's Problems ... Self Reliance Missing and Government Dependency Aplenty ... Tax Evasion and Job Avoidance, Too

We've written about the extremely high 25% unemployment rate and horrible aftermath of the housing bubble in Spain, along with the country's overall deplorable financial condition.

Now comes an "insider's" look at the mistrust of government, the often missing individual work ethic and the general malaise permeating Spanish society.

It raises the disturbing question of at what point people lose hope and give up on the idea of living as responsible citizens contributing to a vibrant society and instead try to milk the government for all they can get.

The Real Spanish Jobs Crisis is subtitled 'If a quarter of Spaniards are unemployed, then why do so many job applicants sign up for interviews but fail to show up?'

"Madrid

Hunger. Austerity. Unemployment. Secession. Three people killed at a Halloween party stampede. Not a day goes by without bad news about Spain.

With family ties to Spain, I have always considered the Iberian peninsula my second home. After graduating from college in New York in 2009, I moved to Madrid. According to data released by the National Institute of Statistics last month, one in every four Spanish workers is currently unemployed. I myself have a job—for now. As the corporate development director of a tech start-up based in Madrid, I review resumes, interview candidates and make job offers, primarily for entry-level positions and paid internships.

But day in and day out, I am puzzled. Perplexed at the number of applicants who send in a resume and then don't respond to calls. Dumbfounded by those who sign up for an interview and subsequently don't show up. Bewildered by others who interview for a position and, upon being accepted, opt instead to enroll in a master's program.

Granted, our start-up isn't offering six-figure salaries. But our internships pay more per month than the per-semester stipends that Condé Nast offers its interns in the U.S. If unemployment in Spain is 25%, why is it that so many of its citizens are not jumping at the prospect of work?

The incongruence between the statistics and the actual situation extends beyond the cubicle. The majority of chachas, or housemaids, continue to be South American. It appears that Spanish women consider themselves too good for such domestic jobs. At anti-austerity protests, activists communicate with iPhones and smoke Marlboros. In a country that is supposedly in a critical situation, how is it that its inhabitants can still afford such luxuries?

 

Spain's 'lost' generation isn't really lost. They just prefer tweeting to working.

The caveat, of course, is that not all can. Many Spaniards have lost their jobs, their homes and more. Yet those who truly suffer don't usually appear in the anti-austerity demonstrations. Nor are they likely to receive much of Spain's bailout money, if the politicians accept it. . . .

If they haven't already lost confidence in the government, many Spanish citizens are in the process of doing so. Why bother looking for work that comes with social-security benefits when no one knows if government pension funds will be solvent by the time they retire?

Such attitudes skew the statistics. It is possible to work as a paid intern while being registered as unemployed. Others enroll as jobless to claim benefits while earning money in the underground economy. "With or without sales tax?" is still a regular question asked not only by plumbers and electricians, but also by higher-skilled businesspeople. "El que defrauda es el rey" is Spain's unofficial motto: Those who defraud and evade taxes are king—lauded and admired by others.

In April, Prime Minister Mariano Rajoy banned cash payments in amounts over €2,500 to try and cut down on the cheating. Yet the latest estimates suggest that Spain's underground economy is still worth 20-25% of GDP. That's double the European black-market average. No use upping VAT to 21%, as the government did in September: Only a fraction of the population actually pays sales tax.

Some Spaniards who have worked abroad prefer to stay there. "There is an abysmal difference between work ethics abroad and in Spain," a 30-year-old friend tells me as he leaves for Singapore. He alludes to the "lost" generation that isn't really lost; they just prefer to tweet and chat, not work. . . .

More than an economic crisis, Spain is suffering a crisis of ideas. Is Spanish society prepared to find a solution?"

SUMMING UP

On top of everything else, tax cheating is pervasive in Spain.

Too many citizens don't do what they can to help repair Spain's finances, including being willing to work initially at low paying jobs and willingly paying the taxes they owe.

Any lessons worth learning for any Americans from what's happening in Spain?

Well, maybe and maybe not.

In any event, if the shoe fits, .... ..!

Thanks. Bob.