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Debtors in Dublin - FT Editorial

alejandro1977 · 2009-12-11 19:56:02

http://www.ft.com/cms/s/0/c8dc757c-e5c0-11de-b5d7-00144feab49a.html Again copyrighted material; please don't repost. I have posted snippets that I think are key, the entire article should be printed and given out to every union leader who thinks we can borrow our way out of recession.

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11-12-2009 8:56pm

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alejandro1977

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http://www.ft.com/cms/s/0/c8dc757c-e5c0-11de-b5d7-00144feab49a.html

Again copyrighted material; please don't repost.

I have posted snippets that I think are key, the entire article should be printed and given out to every union leader who thinks we can borrow our way out of recession.

The Irish have had little luck of late. The national budget for 2010, unveiled this week by Brian Lenihan, the finance minister, is brutal. Masochistic, even. But, sadly, it is also necessary, and not tough enough. According to the International Monetary Fund, Ireland faces stresses and difficulties greater than those of “any other advanced economy”....

Ireland is an ultra-open economy. Compared with its neighbours in the UK, domestic demand is unimportant. Competitiveness is what matters. Being bound into the eurozone and unable to devalue its currency, the only way to give its goods an advantage is to cut wages in nominal terms, as Mr Lenihan has done

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