11.8% is the new figure for the unemployment rate in the Eurozone.This contrasts with around 7.8% in the UK.This is grim reading, especially when you realise that in countries like Spain the rate is 20%.
High unemployment increases public expenditure whilst at the same time reducing revenue.It also reduces consumer spending.This sort of structural unemployment can last for generations and inevitably leads to political instability.
Whilst you cannot spend your way out of a recession there are things such as public works schemes, which are proven to help.We badly need to reflate the economy and these are meaningful ways to do so.
High unemployment increases public expenditure whilst at the same time reducing revenue.It also reduces consumer spending.This sort of structural unemployment can last for generations and inevitably leads to political instability.
Whilst you cannot spend your way out of a recession there are things such as public works schemes, which are proven to help.We badly need to reflate the economy and these are meaningful ways to do so.
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