Pensions Capture Post‑2008 Growth

Luis Garicano claims that in Spain nearly all GDP growth since 2008 has been diverted to pension spending, leaving little for productive investment or maintenance of infrastructure. If true, this political‑economy mechanism helps explain why an energy‑rich, amenity‑rich country can still suffer decades of stagnant productivity. — Shows how intergenerational politics and budget priorities can convert technical advantages (land, renewables, infrastructure) into long‑run economic stagnation, shaping debates on reforming pensions, investment, and growth policy.