Unemployment Rate
Spain's unemployment rate in October 2013 was 26.7%. This is very high compared to other first world or developed countries. 26.7% is an extremely high unemployment rate. Of all the people in the labor/work force, 26.7% of them are without a job.
This relates to characteristics of the labor force and labor supply/demand. 26.7% unemployment does not mean that 26.7 percent of Spain's population does not have a job. The term 'unemployed' only refers to people in the labor force without a job. To be in the labor force, one must be between 16 and 65 years of age, non-institutionalized, and one can be employed or unemployed. If you meet all of these requirements, you are considered part of the labor force. Also, to be considered unemployed, one must be able to prove that he or she is actively looking for a job. Unemployment also relates to labor supply/demand. Spain must have a very high supply of workers but not much demand for them. Basically, this means that there are more people looking for jobs than there are jobs available.
Relation to the United States: In October 2013, the US had an unemployment rate of 7.3% while Spain had an unemployment rate of 26.7%. As seen, there is a major difference in between these two countries. The United States is aiming to get their unemployment rate between 2 and 5 percent. The United States refer to this range as 'Full Employment.' The United States believe that this is the ideal range for there to be enough jobs, while also allowing some extra workers for new businesses starting up.
This relates to characteristics of the labor force and labor supply/demand. 26.7% unemployment does not mean that 26.7 percent of Spain's population does not have a job. The term 'unemployed' only refers to people in the labor force without a job. To be in the labor force, one must be between 16 and 65 years of age, non-institutionalized, and one can be employed or unemployed. If you meet all of these requirements, you are considered part of the labor force. Also, to be considered unemployed, one must be able to prove that he or she is actively looking for a job. Unemployment also relates to labor supply/demand. Spain must have a very high supply of workers but not much demand for them. Basically, this means that there are more people looking for jobs than there are jobs available.
Relation to the United States: In October 2013, the US had an unemployment rate of 7.3% while Spain had an unemployment rate of 26.7%. As seen, there is a major difference in between these two countries. The United States is aiming to get their unemployment rate between 2 and 5 percent. The United States refer to this range as 'Full Employment.' The United States believe that this is the ideal range for there to be enough jobs, while also allowing some extra workers for new businesses starting up.
Percentage of Population under the Poverty Line
In 2012, 21.1% of Spain's total population was considered to be living 'Under the Poverty Line.' In 2008, the World Bank determined that the poverty line would be set at $1.25 a day. If someone earns less than this amount daily, he or she is considered under the poverty line. The poverty line is determined by calculating the minimum cost of living in that country. For example, things that are taken into account are rent for an apartment, food, water, electricity, heating, cooling, etc.
This relates to minimum wage and economic equity. In the United States, even a worker earning minimum wage would not be considered under the poverty line. If people under the poverty line were offered jobs with minimum wage, that person could get out from under the poverty line. Also, this relates to economic equity. Spain does not seem like it sees economic equity as a priority. Over 1/5 of their population is under the poverty line.
Relation to the United States: In 2012, the US had a 15% Poverty Rate. In the US, 46.5 million people were in poverty as of 2012. There is not too much of a difference between the poverty rate of Spain and that of the U.S.
This relates to minimum wage and economic equity. In the United States, even a worker earning minimum wage would not be considered under the poverty line. If people under the poverty line were offered jobs with minimum wage, that person could get out from under the poverty line. Also, this relates to economic equity. Spain does not seem like it sees economic equity as a priority. Over 1/5 of their population is under the poverty line.
Relation to the United States: In 2012, the US had a 15% Poverty Rate. In the US, 46.5 million people were in poverty as of 2012. There is not too much of a difference between the poverty rate of Spain and that of the U.S.
Foreign Aid
Spain seems to accept more foreign aid than it seems to give. In 2012, as a large member of the United Nations, Spain gave out $1.5 billion to help a goal that was set in 2000. This $1.5 billion was .15 percent (not 15 percent) of their GDP. The UN had decided that countries should give at least .7 percent of their GDP to help fulfill their goal. In 2012, Spain actually asked many international banks for $23 billion to help bailout banks going out of business. To sum up, Spain actually would have received a total of $21.5 billion, but Spain did not receive all the money that they requested.
This relates to GDP and government spending. These loans that other banks and countries would give to Spain would deduct from their GDP. If the US federal government were to help Spain and loan them $23 billion, this would be counted in the government spending part of the equation. If the US were to use this money towards something in the US, this would help the US's GDP in the form of Government Spending.
This relates to GDP and government spending. These loans that other banks and countries would give to Spain would deduct from their GDP. If the US federal government were to help Spain and loan them $23 billion, this would be counted in the government spending part of the equation. If the US were to use this money towards something in the US, this would help the US's GDP in the form of Government Spending.
Taxation Policy
Spain's taxation policy is very similar to policies of other countries. The federal government of Spain demands sales tax, property tax, and income tax. In 2012, Spain's government placed a 21% sales tax on merchandise sold and purchased in Spain. In 2013, Spain's government set the Corporate Income Tax Rate to 30%. There is also a 3% special annual rate for nonresident company-owned real estate.
This relates to total revenue and profit, as well as entrepreneurship. These things such as property tax and income tax affect a company or firm's profit. It can earn a lot of money from its sales, but income tax will reduce the profit. The more a company earns, the more it has to pay income tax. Also, entrepreneurship is affected by tax. An entrepreneur would not want to start a company with factories or plants in Spain, due to the nonresident real estate tax.
Relation to the United States: The US has very similar tax policies. The US has varied sales tax rates ranging between 0%(Oregon) and 10%(Alabama). The US has similar nonresident real estate taxes and property and income tax. The US has a 39.6% income tax for the first of seven brackets.
This relates to total revenue and profit, as well as entrepreneurship. These things such as property tax and income tax affect a company or firm's profit. It can earn a lot of money from its sales, but income tax will reduce the profit. The more a company earns, the more it has to pay income tax. Also, entrepreneurship is affected by tax. An entrepreneur would not want to start a company with factories or plants in Spain, due to the nonresident real estate tax.
Relation to the United States: The US has very similar tax policies. The US has varied sales tax rates ranging between 0%(Oregon) and 10%(Alabama). The US has similar nonresident real estate taxes and property and income tax. The US has a 39.6% income tax for the first of seven brackets.