Wednesday, November 24, 2010
Ireland - Ouch!
Posted by David Smith at 08:00 PM
Category: Thoughts and responses

There's austerity and austerity, and if the Irish economy can grow through the latest austerity announcements it is a very resilient animal indeed. Normally I'd applaud a cut in the minimum wage (down by a euro to 7.65 euros an hour) as a way of pricing people into jobs. The demand impact may, however, fully counteract any such benefit.

Taxes are going up, with VAT heading for 23% from 21% over the next four years, there's a new property tax and thousands of public sector jobs are being cut. Mervyn King was once reported to have said that the party that implemented the necessary tough measures in Britain would be out of power for a generation. Such is the anger in Ireland, that could be the fate of Fianna Fail. More details here of the National "Recovery" Plan