...there's no demand in Spain. If my sales aren't growing, there is simply no need, full stop.
No demand? Really? Spaniard's won't pay $0.25 euro's to have their house cleaned, or $0.50 for a restaurant meal? Demand is not completely inelastic at 0.
The reason there is unemployment is because something is preventing markets from clearing. For example, it's possible that the government pays people more not to work than employers are willing to pay them to work.
Incidentally, there are plenty of reasons I might hire even if sales aren't growing in my sector of the economy. For example, I might want to increase my market share.
No. But wages and prices are sticky. And they've been noted as such since before there was unemployment or any employment policies of note. So it seems silly to further some notion that they may be the factors behind the stickiness and thus the failing demand.
No demand? Really? Spaniard's won't pay $0.25 euro's to have their house cleaned, or $0.50 for a restaurant meal? Demand is not completely inelastic at 0.
The reason there is unemployment is because something is preventing markets from clearing. For example, it's possible that the government pays people more not to work than employers are willing to pay them to work.
Incidentally, there are plenty of reasons I might hire even if sales aren't growing in my sector of the economy. For example, I might want to increase my market share.