Irish lessons for the UK

sarkin1

We know we're in for some unpleasant medicine after the election, but exactly how bad will it be? That's the question none of the politicians really want to answer. But you can get some interesting clues by looking across the Irish Sea. There you find a small country that has been going through something colossal: not just the steepest recession of any developed country since the war, but one of the most ambitious programmes of budget cuts as well.

http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2010/04/irish_lessons_for_the_uk.html


I believe house prices are down 40% over there

Kohoutek

It wasn't the things Osborne is referring to that led to Ireland's problems, it was their property bubble and banking system (remind you of anywhere?).

Osborne is highlighting in that article Ireland's excellent education system, its incentives for innovation and low business taxes. That's what Ireland is relying on for future prosperity once their very painful austerity package is finished.

Kohoutek

StiflersMom wrote: »

The problems in Ireland are very different. Small economy, with huge welfare state and no control over exchange rates or interest rates, and so the adjustment has been very much more painful than in the UK with house prices and the overall economy falling far more than here.

Huge welfare state - check
Housing bubble - check
Comprised banking system - check

I agree the only difference is that they can't allow their currency to devalue or print money, but I don't think the underlying problems are dissimilar.

chucky

Kohoutek wrote: »

Huge welfare state - check
Housing bubble - check
Comprised banking system - check

I agree the only difference is that they can't allow their currency to devalue or print money, but I don't think the underlying problems are dissimilar.

low tax rates to encourage foreign business investment - check
increased VAT rates - check
cheap employees - check
restrictive fiscal policy due to currency restrictions - check
more clueless people making useless comparisons - check
many others but can't be bothered - check

Kohoutek

What are you babbling about? I was talking about a few major problems that are similar, not a run-down of both economies.

marklv

sarkin1 wrote: »

We know we're in for some unpleasant medicine after the election, but exactly how bad will it be? That's the question none of the politicians really want to answer. But you can get some interesting clues by looking across the Irish Sea. There you find a small country that has been going through something colossal: not just the steepest recession of any developed country since the war, but one of the most ambitious programmes of budget cuts as well.

http://www.bbc.co.uk/blogs/thereporters/stephanieflanders/2010/04/irish_lessons_for_the_uk.html


I believe house prices are down 40% over there

The problem with Ireland is that the country has been living beyond its means for years, and public sector salaries there were far higher than in the UK.

marklv

StiflersMom wrote: »

Deeply concerning that George Osborne believed that Ireland's economic model is something worth emulating:
http://www.timesonline.co.uk/tol/comment/columnists/guest_contributors/article733821.ece

All the more reason not to vote for this idiot.

marklv

Kohoutek wrote: »

Huge welfare state - check
Housing bubble - check
Comprised banking system - check

I agree the only difference is that they can't allow their currency to devalue or print money, but I don't think the underlying problems are dissimilar.

We don't have a huge welfare state in the UK. For a start, JSA here is half what it is in Ireland, and similar for other social benefits. It's a myth that we have a huge welfare state - it's actually quite small when compared to other Western European countries.

Emy1501

marklv wrote: »

The problem with Ireland is that the country has been living beyond its means for years, and public sector salaries there were far higher than in the UK.

And we have not been in this country?

marklv

Emy1501 wrote: »

And we have not been in this country?

Nowhere near as much as Ireland or Greece. That's why our economy is in much better shape and why there is no need for the sort of panic measures that the Conservatives are advocating.

Kohoutek

StiflersMom wrote: »

No - you were trying to equate the problems in the Irish economy with those of the UK and you failed miserably.

Did you and George Osborne study economics together??

:rotfl:

Don't they both have housing bubbles and large failed banking banking institutions (that have been bailed out) and, as you said huge welfare states? Obviously we're a much larger, diversified economy than Ireland but those particular problems are present in both countries.

I'm aware that Ireland's membership of the eurozone means it has no flexibility in its monetary policy, which means it has to go down the austerity route.

I don't think you should be laughing considering you posted an article without understanding what the author meant....