Finance versus productivity
In recent years, finance has multiplied and will continue along that path. An article in the British newspaper The Guardian indicated that by 2050 the value of financial institutions' securities is estimated to be nine times higher than Britain's GDP. But they're just predictions. However, that growth in the financial sector is already quite significant in the United States. In fact, the economic burden of its financial sectors between 1980 and 2006 has almost doubled, from 4.9% of GDP to 8.3%.
But what is this growth going to mean for productivity? Clearly, nothing good. As we have seen in this crisis, the financial sector has been dragged by the real economy. In addition, the money that this speculative sector has brought must be taken into account: The financial institutions of the Spanish State have devoured EUR 87,000 million; only Bankia, almost EUR 23,000 million! Comparison with CAPV budgets, amounting to EUR 12 billion.
In the light of these data, there is no doubt that all this money diverted has significantly affected the real economy, which has been used instead of in the productive sector to plug the holes in the banks. The productive sector will therefore find itself with less financial resources to the detriment of real productive investments.
In addition, as financial institutions’ resources increase, their credits have also increased, but in most cases that money is spent on construction, where productivity is very low. It has therefore not contributed much to overall productivity, that is to say to the real economy.
On the contrary, according to some economists, if financial institutions multiply, there will be more chances of savings being channelled and companies getting cheaper credits. However, the research says something else. In fact, in 20 states, the correlation between productivity and finance has been studied and the result has been inverse: the more a country's finances increase, the more modest the productivity growth is than in countries with slower financial evolution.
It should also be borne in mind that the financial sector is in competition with other economic sectors when recruiting skilled labour. It is believed that it is the financial institutions that hire the most skilled or the smartest workers, while the other sectors hire the secondary ones. In fact, hedge foundations and investment banks lead wiser mathematicians and physicists to create complex mathematical models, to the detriment of sectors that promote productivity. However, this argument is rather weak given that a lot of technicians come out of universities to be able to use them all in the financial sector.
At this juncture there are arguments for and against, but it is true that if in the Spanish case EUR 87 billion were allocated to research and development, we would have a higher level of productivity and therefore we would not have to cut wages so much to be more competitive in international markets. Unfortunately, however, we are in the reverse position. One example of this is the ESS Centre in Bilbao, where an investment of EUR 180 million was planned, but due to budget cuts, this budget has been halved. An investment that will be made equally between the Basque Government and the central government.
Such restrictive measures will not promote productivity.
We are on the wrong road!
Bidali zure iritzi artikuluak iritzia@argia.eus helbide elektronikora
ARGIAk ez du zertan bat etorri artikuluen edukiarekin. Idatzien gehienezko luzera 4.500 karakterekoa da (espazioak barne). Idazkera aldetik gutxieneko zuzentasun bat beharrezkoa da: batetik, ARGIAk ezin du hartu zuzenketa sakona egiteko lanik; bestetik, egitekotan edukia nahi gabe aldatzeko arriskua dago. ARGIAk azaleko zuzenketak edo moldaketak egingo dizkie artikuluei, behar izanez gero.
When you work with older people or people with physical and neural diversity, you realize that the idea of competition in our society limits us a lot as a species. That is, our system puts you in value by doing things specifically, and what it doesn't do is incapable of the... [+]
I wanted to write for the Christmas lights and claim to become an annual tradition in this time of street lighting, a welcoming, joyful and joyful public space from the point of view of the class. But, of course, also warm public spaces where some young people can be warming up... [+]
He forgives the oak trees, oak trees, oaks, herons, strawberries, dressings, chestnuts, birch, gorostidias, chamomiles, pine trees and all the societies of the trees, but today the hayedo has a date on the occasion of the celebrations of the winter border.
It is easier for me... [+]
Euskaraldia comes back. Apparently, it will be in the spring of next year. They have already presented it and the truth is that it has surprised me; not Euskaraldia himself, but his motto: We'll do it by moving around.
The first time I have read or heard it, the title of the... [+]
When the heteropatriarchal capitalist colonial system is questioned and fought, it attacks mercilessly. Using all the tools at your disposal to strengthen, strengthen and consolidate institutional power, media, justice, language, culture, violence...
In Switzerland, where every... [+]
I do not know if you also have the same perception – I recognise this: here I have started to write in a scientific way. I am referring to the natural extension of the word laziness. I hear more and more in the corners of Hego Euskal Herria: Basque, Spanish and, of course,... [+]
Many at Christmas feel more lazy than illusion when we think about meals and family gatherings. But we anticipate that it is not food that makes us feel collectively uncomfortable, but the normativity that defines the traditional family. Moreover, we would dare to say that the... [+]
I have always found the way in Spanish to the carriages that can be found here and there: humiliating. Isn't it a pretty light, white name or doesn't it have any connotation? After all, everything that was going on there had to be humiliated. It is known that for the god of... [+]
The end of the Syrian Arab Republic has caused great surprise at the way in which it has taken place: fast and almost without resistance. However, it is not so strange when we consider that the country was destroyed, impoverished and trodden. Most Syrians have long been... [+]
Novelty is usually one of the most heard words associated with the Durango Fair. The novelty is there, and here's the novelty. However, in some cases it is sufficient to give a different aspect to the previous one to paste that label. The CDs and remastered reeditions with... [+]
The Basque country has a very large water flow in the shortage. Every local drop curls and revives our culture. Offer a sea of water to that thirst. Although the Basque Country has come from a deep and dark well, we have all drawn our sample of salt water and turned it into a... [+]
Young people start consuming pornography before, as porn is their only sex education. How on earth have we come here?
Today, it has to be acknowledged that thanks to the Internet it is much easier to see pornography. Unfortunately, through a click, the 7-9 year-old boy comes to... [+]