Firn, the Spanish paid for almost all their imports with exports. The trade balance deficit was far less than 1% GDP!
(The U.S. trade balance deficit was an order of magnitude bigger in %GDP!)
The statistics simply say "NO!" to the idea that the Spanish boom or government was financed with foreign capital.
That "the Euro led to a huge capital influx" story is valid for the Baltics, Greece, Portugal, maybe Hungary and so on. It is NOT the story of the Spanish.
The Spanish squandered their own resources and work.
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Btw, I have recently engaged in some discussions about economics with Americans online. It is astonishing how readily they discuss matters they don't understand for lack of education and keep ignoring arguments and evidence in favour of talking points and aggressive behaviour towards the other tribe or whom they perceive as part of it.
Party line ideology has clearly taken over both on the left and right. Economic science is often being despised by both wings, and I suspect it's not so much for its actual limitations, but because it gets in the way of their ideology with its actual strong points.
The left cannot understand that the economy needs more investment and is really not only about consumption.
The right cannot understand the small role of tax rates for economic growth, what drives potential GDP growth or even the most basic concepts of market imperfections stemming from the early 20th century or even from the 19th century.
Both wings have absolutely no problem with living in a fantasy world regarding historical outcomes, the state of the science and many other things. They're utterly comfortable living in their non-real worlds.
Then again, we're basically on autopilot in regard to economic policy in Germany with no smart remarks from either wing...
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