00:00Socialist governments traditionally wreak havoc on public finances.
00:03They always run out of other people's money.
00:06Those words fully apply to the record of Spain's current government,
00:10which consistently expands social protections,
00:13but does so in an economy where productivity and income per worker
00:18remain lower than in the leading countries of Western Europe.
00:21As a result, social obligations grow faster than the economy's ability to finance them,
00:26and the budget deficit becomes chronic.
00:29When its own resources are insufficient,
00:31the government is forced to look for additional sources of funding,
00:35increase the tax burden, and use unconventional budget measures.
00:39At the same time, excessive regulation complicates business scaling
00:44and prevents the economy from fully realizing its potential.
00:48The main problem in Spain is that the state is taking on more and more obligations,
00:53while the economy itself is not developing productively enough to cover them painlessly.
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