Discussion in 'Letting Off Steam' started by Kerrigan, Nov 23, 2011.
Could somebody please explain how an economy can recover without people working
Is there a genuine question here? Do you believe an economy exists where no one is working?
Hi Leo, yes a genuine question with a touch of sarcasm! I've heard 'a jobless recovery' been mentioned quite a lot mainly be economic institutions and the media. They must and do take us all for fools.
Despite what the papers may lead you to believe most people still have jobs.
emmigration, we don't get more people back to work but our social welfare bill is reduced by people leaving the country. That then frees up more funds for the Govt to start to spend in measures (capital spending for example) that could then create jobs in the longer term or to allow them to reduce taxes to give people more money to spend.
A long term recovery requires people working, but in the short term, the solution may be for people to leave
Emigration seems to be a pressure valve so
Wasn't there some Minister who said there wasn't room for all of us on this island?
That was a pretty smart alec reply Leo.
Brian Linehan (Snr) back in the late 80s.
It wasn't intended to be, but was a reflection on the validity of the question. if no one is working, you don't have an economy, so economic is impossible.
I think the term refers to the "export led recovery", which is essentially the export market doing well, but with no plans for new jobs being created in that industry other than those that currently exist. Rather than nobody being employed at all.
It refers to a recovery where that recovery is not in labour intensive areas of the economy.
The same discussion took place in the early 90’s when exports were up, the balance of payments was good and both GNP and GDP were up but unemployment stayed high.
The solution was tax incentives to stimulate the labour intensive sectors (low skilled retail and construction jobs) through tax breaks and interest cuts. This lead to the construction bubble, the property bubble, wage inflation, loss of competitiveness, loss of a whole generation of skilled people (who went into construction trades and construction related degree courses instead of engineering, engineering trades, computer science etc)national delusional self aggrandisement, massive debt and recession.
A jobless recovery is better than some populist muppet trying to “create” jobs by robbing productive Peter to pay unproductive Paul. It’s one thing spending money on essential services but let’s not try any of that “Stimulate the whatever sector” nonsense again.
The flood gates for emigration have yet to open for the half million currently unemployed including the countless numbers in FAS schemes, CE Schemes etc. Maybe when they have all disappeared, you will be able to reassess your situation then you will realise you will be back to the 50's with only the elderly and young left behind.
There's currently around 300'000 people unemployed. That's around 14% of the workforce. The highest rate was in 1985 when to hit 17.5%.
Unemployment in September was 14.3%
So it will be the elderly , the young and the 85.7% of people who still have jobs.
So the economy is booming, there is no need for this thread and everything is rosy in the garden
Who said that?
No , but for everyone who doesn't have a job there are 6 people with job.
It sucks for the 1 , but it doesn't lead to an abandoned country.
you would be almost wondering why the goverment is going on about it much!
I hate when persons quote percentages, but do not include a percentage for those that have emigrated. Probably between 1 and 2% have emigrated so the figure 85.7% is incorrect
what about those that have immigrated in! We're shipping out educated ,at high cost, young people (in the main) and by giving a lot of the jobs going to Immigrants (either those already here or the 55,000 given PPS number this year so far)...see other post on Rathmines Leisure Centre.
So jobs are being created, or at least retained, but the numbers leaving the country v's those coming in are netting off against each other.
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