The governor of the Bank of Portugal said at a dinner on Sunday that people’s aspirations simply can not be met in the current economy.
Speaking at the Porto Business School, Carlos Costa stated that, "It is clear to all that the aspirations of individual well-being and collective equity of Portuguese society today exceed the production capacity of the economy.
“We have aspirations for which we do not have available production capacity and such misalignment can only be filled with more and better economic growth, otherwise we will always live with aspirations limited by our own inability to generate the income that allows them to satisfy." Quite.
Costa entertained his audience with his pet theories on the economy and Portugal’s lack of productivity and poorly trained workforce.
Although the number of people with higher skills has increased, "there are still significant gaps in relation to European averages and it is therefore necessary to continue to improve the education of workers, especially the older ones who typically have fewer qualifications."
Costa warned his fellow diners of social discontent, wasting resources and of damage to public finances.
"What we are generating, fundamentally, is a situation of dissatisfaction that will lead to pressure on the budget, or on society and, of course, an exit of workers to other economies,” added the inspirational banker.
For Carlos Costa, the problem of the Portuguese economy, "is that it is based on two legs, one that is tradable, the other that is not tradable", and that of the non-tradable tends to become longer, said the country's premier regulator, to bemused diners.
