#spanishrevolution
Out of context: Reply #65
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- Miesfan0
A few things...
Unemployment and self-employed in Spain
Spain has gradually been losing autonomous-freelances- from the 70's, with little recovery in times of economic boom, as shown here:
The evolution of unemployment compared to the number of self-employed in Spain: Spain is seen as self-employed has been losing over the past 40 years, failed to recover even in good times. Particularly striking is the evolution of the figures between 1994 and 2007: unemployment declined, while lowering the number of autonomous. O, which is the same, although at that time 2 out of 3 European jobs were created in Spain, there was no net creation of enterprises, rather the opposite. We have here the key problems with unemployment in Spain: not enough business and what is worse: there are fewer. Who says business, Autonomous says, because each company, to the largest multinational, some time in their history began with a self-contained. Therefore, understanding the problems of the freelance, is to find a solution to the lack of companies in Spain. In 1983 there was a significant rise in Social Security contributions that nearly doubled. The argument was that he quoted did not cover social protection needs of the self. It is suspected however that the real purpose was to use the self as the cash cow for Social Security. In 1993 there was another major increase in fees to pay. In both cases the increases were the prelude to a sharp decline in the number of autonomous, as shown here
Ratio of the minimum contribution to the SS, and the number of autonomous: whenever there is a rise in the prices, definitely lower the number of autonomous to never recover. Independent figures are expressed in tens of percent (vertical axis) so that it looks better the relationship between number of self and the fee payable to SS. This shows us clearly that the fixed cost of contributions to the SS has the perverse effect of constituting a major barrier to be autonomous in Spain. Hampers the entry of new self in good times while promoting the loss of self in time crisis, thus hindering the economic recovery after a crisis.
Therefore urgently necessary to do a thorough reform of the Statute of Self-Employed in the following three aspects:
The Social Security contributions should be recovered after the event and must be closely related to the benefits.
The tax liability must be limited to a statement of income per year, without the obligation to forward quarterly 20% of the profits.
Free hiring of relatives.
Like Social Security in Spain is a separate box of state budgets that are fed mainly from taxes, I can imagine the following organizational structure to establish the desired relationship between the SS contributions and benefits of self:
The basis for calculating contributions will be the annual statement of income.
The income statement set for next year the price to pay to the SS, which depend on reported profits.
These contributions are set according to a scale, with a fee of € 0, or as much of 50 € for the lowest incomes.
The contributions will rise in steps of 50 € for each x € of reported profits.
With these simple changes to the Statute of the Autonomous Workers' unemployment figure can easily be reduced by 5% in the whole of Spain, and perhaps up to 10% in Andalusia, which accounts for a quarter of the unemployed in this country. More than a plumber, bricklayer, electrician, computer or hairdresser, now barely survives in the hidden economy, seize the opportunity to regularize their business and take it with dignity, as has happened before in the Netherlands.Thus the independent sector can not only last, defog his role as a buffer against unemployment in times of crisis, but also help to revitalize and diversify the economy, which is essential for reducing long-term unemployment and rising real wages.
by Frans Bakker.