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High incomes 'wasted' in boom years

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  • 19-02-2010 12:56pm
    #1
    bealtine
    Registered Users Posts: 4,051 ✭✭✭


    http://www.rte.ie/business/2010/0219/economy.html

    Friday, 19 February 2010 11:24

    Irish workers wasted their high incomes during the boom, and while incomes remain high on an income per capita basis Ireland itself is not a wealthy country.

    An economic report by stockbrokers Davy says that Ireland's capital stock - like roads, rail, school, hospitals and telecommunications - is inferior to other small euro area countries like Finland or Belgium.

    It says investment here was misallocated from 2000 to 2008 and that infrastructure now should be much better. The report says that in the eight-year period 63% of net investment in capital stock was in housing. Housing, it says, is an unproductive asset.
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    Davy says upgrading road infrastructure boosted productivity by reducing journey times and was the country's 'greatest triumph' in the period under view.

    However, the stockbrokers add that under-investment in the communications network is a concern, and unless there is a reinvestment productivity will suffer.

    Economist Rossa White says that Ireland's human capital is its greatest strength. He says the country has the second highest number of graduates in the 25-34 age group, and that investment in education must remain a priority.


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    #2
    JohnThomas09
    Closed Accounts Posts: 357 ✭✭JohnThomas09


    I agree with this.During the boom years people never watched their money.It was a spend culture.If only people put side 200 a month,id say it would come in handy for a lot of families now.


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    #3
    rahtkennades
    Registered Users Posts: 615 ✭✭✭rahtkennades


    Given that Davys were involved in putting together the financing for a lot of these 'wasteful' spends on housing etc, I think they're talking from both sides of their mouths on this.


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    #4
    Capt'n Midnight
    Moderators, Recreation & Hobbies Moderators, Science, Health & Environment Moderators, Technology & Internet Moderators Posts: 91,688 Mod ✭✭✭✭Capt'n Midnight


    what's this we business ?

    infrastructure is provided by the government / big business not by private individuals

    don't blame Joe Public for spending money when the other big option for people was to invest in overpriced houses to the benefit of a few developers


    most of our politicians look no further than the next election , few look beyond this generation :mad::mad::mad::mad:


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