Some Comments on Spain

This May, for the fifth year in a row, we visited IESE, the Spanish business school in Barcelona.  It was an interesting time to be in Spain or in Europe, for that matter, with the economic crisis and the high unemployment.  But as is often the case, things are more nuanced on the ground that what is presented in the media.

First of all, some travel trips.  Many tourists go to Barcelona, fewer to Madrid.  I think that's a mistake.  Madrid has the royal palace, some amazing museums, beautiful hotels, and in my opinion, has less traffic congestion than Barcelona making it easier to get around.  It doesn't have the sea, but unless you are going to the beach (this May was quite cold in any event), I'm not sure that makes such a difference.

If you do go to Barcelona, I have a restaurant recommendation:  Hisop.  It serves a set three course menu, has exceptional service, is very reasonably priced, and the food is simply amazing.

Spain itself is a paradox.  On the one hand Spanish unemployment is high, presumably about 20%.  But the department stores seem full, the restaurants are crowded, people are strolling the avenues, and I felt much less stress or angst than I do in the U.S.

My friends here tell me that is for several reasons.  First, Spain has a large underground economy that is not reflected in the official employment statistics.  Second, the downturn in construction has affected some of the outlying areas more.  The center of Barcelona and Madrid, with the concentration of banks, trade, and government, may not be where the economic stress is most visible.

Third, eating out and going out are very much part of the Spanish lifestyle.  Families are important in Spain and it is not unusual to see, on Sunday for instance, several generations sharing a meal at a restaurant in the afternoon.  So, dining at a restaurant is part of the Spanish family experience.  As one friend said, people in Spain would give up many things before they stopped eating out.  In the U.S. restaurants are a luxury, in Spain they are more of a necessity.

Fourth, there is a sentiment I have heard several times that goes, loosely translated, as "you are going to die eventually anyway, so don't leave a lot behind."  Many of the people I encountered emphasized the importance of enjoying life and not excessively worrying about the future.

And fourth, Spain, like many of the countries in Europe, has a decent social safety net.  When people are out of work they can still access medical care because, unlike the U.S., health insurance is not tied to one's job.  There are pensions and transfer payments that ease the burden of unemployment.  Yes, this makes the public debt larger.  But it also creates what seems to be a happier and healthier society with more joy.

That joy and good feeling is contagious.  Which is one reason my wife and I enjoy visiting Spain regularly.