Bailing out the banks vs Current account deficit

[Firefly]

I don't know how many times...but here it is again...

We're borrowing 20GB a year to plug the deficit gap.
35% of current expenditure is going on pay...which means 7BN of annual borrowing is going on pay. We can't afford this!

I totally agree the banking situation is a disaster, but as stated this is a one-off hit....we'd have the 20BN deficit issue anyway.

 

[Purple]

There are many private sector organisations continuing to pay at same or increased levels. There are some private sector organisations recruiting staff.

If an export focused private sector company is continuing to make a profit by operating in an international market where the ups or downs of the Irish economy have no bearing one way or another on their business do you think they should cut pay levels? In my opinion that would be disgraceful as doing so would simply be taking advantage of the recession in order to increase profits and therefore pay levels for the owners and/or directors.

 

[doubledeb]

I don't know how many times...but here it is again...

We're borrowing 20GB a year to plug the deficit gap.
35% of current expenditure is going on pay...which means 7BN of annual borrowing is going on pay. We can't afford this!

I totally agree the banking situation is a disaster, but as stated this is a one-off hit....we'd have the 20BN deficit issue anyway.

Ha ha that made me laugh
Where are we borrowing 20GB from?.... the hard drive?

 

[Firefly]

Ha ha that made me laugh
Where are we borrowing 20GB from?.... the hard drive?

More like 20TB

 

[Firefly]

http://notesonthefront.typepad.com/...5-standards-the-argument-that-irish-publ.html

I take the point but I don't agree with it. The benefit IMO to cutting wages would be larger than the cost of lost tax revenue...otherwise why doesn't the government simply hire the 400k unemployed people and hey presto we'd be sorted.