A utopian vice president

When Pedro Sánchez took office as Prime Minister of Spain, the minimum wage (SMI) was 735.9 euros per month, and now it's 1,184 euros; in terms of purchasing power, this represents a 33% increase. Contrary to the predictions of mainstream economists—led by the Bank of Spain—this increase has been accompanied by the creation of 2.6 million jobs and a 4-point drop in the unemployment rate; a phenomenal success for any government, especially one considered left-wing.

However, it must be stated loud and clear that the minimum wage is still low, as it amounts to only 21% of average labor productivity (measured as the ratio of GDP to the number of employed persons). It is true that Sánchez found it at 16% (Felipe González had left it at 14%), but in the United Kingdom or Germany it is equivalent to 25%, the same proportion it was during the Franco regime (!). In fact, it is likely (but not certain) that the new German government will raise it to 30%, in accordance with the terms of the coalition.

Instead of insisting on what is going well, he insists on a senseless reduction in working hours.

There are three additional arguments for continuing to raise the minimum wage above inflation. First, employers in a multitude of sectors are struggling to find workers, a sign that they can afford to pay more. Second, Spain is a magnet that attracts far more immigration than it can handle, both in terms of the provision of public services and housing; it needs to stop, and the best way to do so is by raising reference wages for a large portion of immigrants, the least qualified. Third, and most important, is that Spanish employers must receive a clear and forceful signal that productivity must be increased, which is tantamount to saying they must abandon their addiction to cheap labor, because the current growth model is unsustainable, no matter how much the IMF or The Economist congratulate us with their usual shortsightedness.

But instead of insisting on what's going well, the vice president has insisted on a reduction in working hours that makes no sense. It's true that one of the achievements of trade unionism has historically been the reduction of working hours, but it's no less true that this has been possible thanks to increases in productivity, and in Spain, productivity is in disastrous shape: it has practically not increased in 30 years!

But the ultimate reason why the vice president should raise the flag for the minimum wage and not for reduced working hours is practical: the former depends on the government—via decree—and the latter on the Cortes—via bill—where it will most likely fail.

Yolanda Díaz is a member of the Spanish Communist Party. A colleague should remind her of the fierce criticisms of Marxist orthodoxy toward "utopian socialism": change depends not on goodwill, but also on what is possible at any given moment.