THE RICH EUROPE WANTS TO CONTINUE ABUSING OF THE POOR EUROPE

The competitiveness is one of the horses of battle of the countries of the south of Europe, included Spain, to correct its economic imbalances. Up to now, the deflation of the wages, (the already famous to work more for less) and of the economy in general, it is the chosen road to try to improve the position exporter of the weakest countries and this way to try to return to the path of the growth. But this is not well outlined from the point of view of the weak countries, because this measure is taken from the strong countries and it is absolutely ineffective and he would say that counteractive for the weak countries. 

The reason is very simple, the problem common of the weak countries is that they don't possess an important industrial fabric, and not that its product or manpower is expensive, it is simply that they don't have anything to export, because its industrial fabric was in its moment product of the localization of foreign companies that they used the cheap manpower and that when the things have twisted they have you are located as it should be on the other hand. Therefore the country weak or poor today as they want, it doesn't possess conditions of to be reactivated for very low that is the wage that he tries to impose in their labor legislation.  

Spain for example although ends up paying wages of 600 Eurus, it could not export anything; he understands each other in enough quantities to consider a reactivation possibility and of increase of national productivity. And it is not that Spain doesn't export, he makes it of course but in fields or of very low value, or of very little manpower use, examples: Products agricultural and nutritious, and high technology and computer science; the automobiles and the trains for example, are low marks foreigners all the exports. 

In these times the industry exporter is located in the European north center, its vital center is Germany and France, Italy continues him in its north area and you finishes, the other ones have or we have some rarities exporters, but don't unite potent industry of the export, clear if the country that possesses the "rarity" is small, perfect that is the cases of IKEA, and NOKIA, for example, but it is that alone Spain has of world exporter ZARA anything but, everything the rest is or services or civil work that but that to export is that it is implanted in the place in that the service, or the civil work takes place, it is not that it is built or be carried out in Spain and then it is exported, it is clear. 

Few alternatives have been given, once it seems difficult that Germany, paladin of the austerity, try to stimulate their consumers to reduce the gigantic surplus of the country and to help this way to the exports of the weakest. However, they say that there is another alternative: does the fiscal devaluation, devise defended by the professors Emmanuel Farhi and Gita Gopinah, of Harvard, and Oleg Itskhoki, of Princeton, And on what does it consist this fiscal devaluation? Very simple: an increment of the accompanied IVA in turn of a reduction of the social rates. With this movement a devaluation of the currency would be simulated (something that is limited by the ownership to the euro), since it would urge the imports and it would reduce the exports. 

The discount of the social rates says, he would make of counterbalance so that the local companies didn't go up the prices in turn for the increment from the tax to the consumption. With this movement a similar result would be obtained to that of an exit of the euro and a monetary devaluation, but without the risks for the country (and for the rest of the Euro zone) that would bear a rupture of the euro. According to the investigations of the authors, this fiscal" "devaluation has some very similar effects that a traditional devaluation in terms of GDP, consumption, employment and inflation, are not I say this way that this measure would contribute depreciation social, consumption slope, and inflation. 

As they come they don't understand it the economic theories all, they are thought from the opulence of societies with cleaned up deficits and positive commercial scales, if in Spain you goes up the IVA and he is lowered the rates of the Social security, the only thing that will happen is that they will lower the social benefits on the whole for the whole society, but not the consumption prices since with the ascent of the IVA they stay so in the current situation that he would be necessary to see it, the result it would be: same low wages, but social insecurity for the loss of social services, and the same or less export of the same agricultural and technological nutritious products. That if the foreign makers would be rubbed the hands because they would win but when paying less for the same production. Europe please doesn't give us more recommendations and damages more you solve.