Our future? In Ireland, a Picture of the High Cost of Austerity

[Karmadillo]

At least we will be able to live vicariously through the banksters.

http://www.nytimes.com/2010/06/29/business/global/29austerity.html?hp

By LIZ ALDERMAN
Published: June 28, 2010

Nearly two years ago, an economic collapse forced Ireland to cut public spending and raise taxes, the type of austerity measures that financial markets are now pressing on most advanced industrial nations.

“When our public finance situation blew wide open, the dominant consideration was ensuring that there was international investor confidence in Ireland so we could continue to borrow,” said Alan Barrett, chief economist at the Economic and Social Research Institute of Ireland. “A lot of the argument was, ‘Let’s get this over with quickly.’ ”

Rather than being rewarded for its actions, though, Ireland is being penalized. Its downturn has certainly been sharper than if the government had spent more to keep people working. Lacking stimulus money, the Irish economy shrank 7.1 percent last year and remains in recession.

Joblessness in this country of 4.5 million is above 13 percent, and the ranks of the long-term unemployed — those out of work for a year or more — have more than doubled, to 5.3 percent.

Now, the Irish are being warned of more pain to come.

more...

[Liberal In Texas]

1. Wasn't Ireland being thrown in our collective faces a few years ago because

it was an example of how deregulation, low or no taxes on corporations, and the free market worked so well?

There still is no place on earth where these "Chicago School" policies have ever worked.

[The Magistrate]

2. Nor Will there Ever Be, Sir, Because They Do Not Work

Or to be more precise, do not work to any other effect but cncentrating wealth in ever fewer hands, and impoverishing more completely an ever greater portion of the citizenry. This, they do to perfection, every where and every time they have been tried....

[denem]

5. I have always wondered why "Self Interest" does not include the type of society

people would like to live in. However wealthy, however taxation few, I believe would aspire to a Colombian model.

'Why should I pay for unemployed, poor and disadvantaged groups.' I don't hear the same argument about say, fire insurance: Why should I pay when it's the other guy's house that burnt down.

It's difficult to keep safe that which you treasure, both personally and socially against blazing inequality, an alienated under class, and grotesque fissures of misery, despair, resentment and hatred

'Why should I pay'? It's in your self interest?

[Crystal Clarity]

4. Yes it was

I remember how in the late 90's and early 2000's, political and business leaders where taking trips to Ireland to 'learn' from it's success. Which incidentally fit in well with the right wing meme. Interesting how Ireland's economy has ceased to become a talking point for them. Nothing but crickets from the right wing these days regarding Ireland's current economic woes.

[WCGreen]

7. They discovered a small pocket of gold and they also had a

fungible economy. They were enticing mobile high tech firms to come in. The trouble is those same companies who have no ties to any community because of the nature of their product, will up and leave without notice when the next country pitches a better offer.

[Solly Mack]

3. k/r

[GeorgeGist]

6. Au contraire, mon ami ...

What you see is the High Cost of Greed. Profits are never free.

[amborin]

8. K&R