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Do people really not understand how economies recover?

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    #32
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    MrKingsley wrote: »
    So when weve past "the worst of it" where will the money come from in order to help the economy to expand once more?

    May seem like a very basic point but im just curious as someone with rather little economic knowledge
    Studies and figures have shown that private savings have skyrocketed in this country - in fact it's the primary reason why sales are down. So most people are saving instead of spending, we're not losing money hand over fist because people have lost their jobs of because of pay cuts, we're losing it because people aren't spending it.

    When we're past the worst of it and people are more confident, people will begin to spend more and will began to relax on savings.

    Social Welfare recipients by definition tend to save very little, and public sector workers only make up around 10% or less of the workforce. In addition, pay levels are back to 2006 - when we saw the largest amount of private spending in the history of the state, so it's not a case that we don't have the money, we're just not spending it like we used to.


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    #33
    MrKingsley
    Registered Users Posts: 2,428 ✭✭✭MrKingsley


    seamus wrote: »
    Studies and figures have shown that private savings have skyrocketed in this country - in fact it's the primary reason why sales are down. So most people are saving instead of spending, we're not losing money hand over fist because people have lost their jobs of because of pay cuts, we're losing it because people aren't spending it.

    When we're past the worst of it and people are more confident, people will begin to spend more and will began to relax on savings.

    Social Welfare recipients by definition tend to save very little, and public sector workers only make up around 10% or less of the workforce. In addition, pay levels are back to 2006 - when we saw the largest amount of private spending in the history of the state, so it's not a case that we don't have the money, we're just not spending it like we used to.

    Thanks for that. So really weve got eddie hobbs to blame for all of this!

    Could we say that Brian Lenihan has actually pulled a master stroke and is trying to weed out the big savers by dropping the booze prices???


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    #34
    Ciarán_Dublin
    Registered Users Posts: 23 ✭Ciarán_Dublin


    goldjogger wrote: »
    public workers being cut 5% on the lower scale how much is that really? I have heard 20euro from a friend of mine who is on the lower scale of public workers and she will still come out with over 600euro a week.

    I earn 250euro a week in the PS and I'll be down 5% which works out at 12.50 a week. your friend has their figures wrong.


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