Wot's in store for U$A?

[Leftwinger]

Ireland is the only country (that I'm aware of) that followed austerity measures right from the very start of the crisis. We've now had several years to see how that has worked for them, other countries only introducing them fairly recently.

Despite all this time for the austerity to fix things, the situation in Ireland has continued to deteriorate with official unemployment rising from around 5% to now more than 14% and continuing it's upward trend (the broader measures of unemployment would put it much higher than this). The situation for business is generally terrible and despite the attempts to eliminate the government budget deficit - which we should be VERY clear has arisen largely from the government bailing out the banks - through slashing government spending and tax hikes, the deficit has not been eliminated.

Why austerity is not "fixing" the deficit is not rocket science - the (1)withdrawl of government spending and (2) the crushing of what little private sector demand remains through both (1) and (2)(tax hikes), has destroyed the governments tax base. Businesses struggling to stay afloat pay little tax and bankrupt businesses and the unemployed pay no tax at all. The more forcefully the government squeezes and cuts back, the more the economy is depressed and the less capacity it has to return tax revenue to the government.

Austerity is a self-defeating road to nowhere. Only when the deficit is allowed to do it's job will strong, sustained growth return and when it does, the deficit will shrink anyway through the actions of the automatic stabalisers.

[IQSRLOW]

Bullshit.

You only have to look at the US to see that trillion $ deficits aren't the panacea you paint them to be

[Leftwinger]

So I'm lying about Ireland's response to the crisis and the situation it finds itself in now?

[IQSRLOW]

Ireland has it's own unique set of circumstances that set them up for the pain they are experiencing such as taxing business at 12.5%.

Your problem is that you have long arms trying to reach into other peoples pocket. Like all socialists, you will run out of other peoples money to spend

[Leftwinger]

I'm having a pointless conversation with someone as dumb as a rock. However, if you pay close attention (you won't), you will see the situation unfolding as I have described.

[IQSRLOW]

You keep telling yourself that tard.

Go rake a few leaves and come back when you have obtained a little more business acumen from someone other than communists

[Outlaw Yogi]

About 15 years ago or so I worked with a Scottsman, and when I mentioned Britain being in recession, he replied "Britain's been in recession for 20 years"

As for Ireland, well I read recently things are so bad the govt is handing out cheese.

Of course American's (and to a lesser extent Australian's too) buy now pay later junk consumerism had to crash eventually, but one commonly repeating factor I've noticed with countries going down the tube is a lack of a manufacturing base or sending their current manufacturing industries off-shore.

Then we've got China and India on the way to percieved prosperity and the only tangible thing that has changed is they're riding manufacturing booms.

[Leftwinger]

You keep telling yourself that tard.

Go rake a few leaves and come back when you have obtained a little more business acumen from someone other than communists

You mean from someone like you

[IQSRLOW]

From anyone who has got further in life than cleaning toilets and raking leaves would be a start

[Leftwinger]

Cleaning toilets actually isn't in my job description, there are cleaners to do that. And if they didn't do it, everthing would splutter to a disgusting halt. Everyone who makes a contribution makes a worthwhile one. I daresay, even you.

I think you also underestimate my financial position (not that it matters). I am constantly struck how my humble household has as much disposable income as many of those around me in this resource boom town who are earning $150 - $200 grand a year. Part of it is simply good luck - buying before the house price bubble really took off - but part of it is good financial management. Six weeks gauranteed leave a year, plus long service leave on a regular basis, all holidays at the same time as the rest of my family - life is good Why would I go elsewhere, despite having close relatives in supervisory positions in workplaces who are short of staff and pay ludicrously high wages?

BTW, what is it that you do IQ?