1.1.4 Economic and Social Problems

• Economic Problems:

  1. Spain's economy was predominantly agricultural
  2. Wages were very low, meaning poverty was widespread and there was little stimulus for economic development
  3. The government had borrowed large sums of money, creating a budget deficit
  4. Spain was badly affected by the Great Depression
  5. The peseta had to be devalued
• 46% of the Spanish workforce worked on farms
• Unemployment rose from 400,000 in 1931 to 600,000 in 1933
• 65 - 75% of Spain's unemployed lived in rural areas
• In 1928, the peseta stood at 29.50 against sterling but by 1930 had reached 40.10
• In 1930 most peasants worked a 16 hour day, earning only 5 pesetas a day. On 35 pesetas a week, peasants could not afford meat, fish or eggs
• An urban worker could expect to make 15 pesetas a day. The vast amount of migration from peasants to cities led to the development of shanty towns
• In 1930 only 55% of children between the ages of 5 and 14 were enrolled in schools. Spain's literacy rate was also significantly lower than other European nations, at just 70%