Big Numbers

People do not understand big numbers.

In Spanish, a billion has twelve zeros, while in English it’s a “more manageable” nine zeros. Why more manageable? Because a Spanish billion of anything practically does not exist, so you never actually use it.

In the corporate world, some companies have an English billion in market value or budget—but nobody deals in Spanish billions.

If we want to find entities that actually reach this magnitude (Spanish billion = English trillion), we have to look at countries. The estimate for 2025 is that 19 countries will have a GDP over US $1 trillion (Spanish billion):

RankCountryProjected GDP (USD)
1United States$30.51 trillion
2China$19.23 trillion
3Germany$4.74 trillion
4India$4.19 trillion
5Japan$4.19 trillion
6United Kingdom$3.84 trillion
7France$3.21 trillion
8Italy$2.42 trillion
9Canada$2.23 trillion
10Brazil$2.13 trillion
11Russia$2.08 trillion
12Spain$1.80 trillion
13South Korea$1.79 trillion
14Australia$1.77 trillion
15Mexico$1.69 trillion
16Indonesia$1.37 trillion
17Netherlands$1.15 trillion
18Saudi Arabia$1.07 trillion
19Turkey$1.12 trillion

So yes, the English billion is definitely easier to wrap your head around than the Spanish one… at least, you will use it more times. But, is understanding big numbers such a good deal?

The 2012 Spanish Crisis and the “Rescue” of Bankia

Spain was hit hard by the 2008 global financial crisis and the subsequent Eurozone debt crisis. By 2012, its banking system was under severe stress due to the collapse of the real estate bubble, which left banks with massive amounts of bad loans and devalued property assets.

Bankia’s Role

Bankia, created in 2010 from the merger of seven troubled savings banks (cajas de ahorro), quickly became the symbol of Spain’s financial woes. In May 2012, it revealed huge losses—over €19 billion, far worse than initially reported, and requested state aid.

Bankia eventually received around €22–24 billion, making it the largest single bank bailout in Spanish history.

Everybody understands 22. Even 22,000. But 22,000,000,000? Good luck. People don’t really understand big numbers.

Simplify to Understand: Taxpayers in Spain (2012)

According to the Spanish Tax Agency, around 19–20 million people were paying taxes in 2012.

So:

€22 billion ÷ 20 million taxpayers = ~€1,100 per payer

Now that’s a number anyone can understand: the cost of the Bankia rescue for a common worker.

The Lesson

What do you prefer? To know, or not to know?

The less you understand, the easier in their hand. But ignorance is cheerier, makes the nonsense merrier.

As the magnificent modern philosopher and Spanish president Mariano Rajoy once said:

"¡Cuanto peor, mejor!"