Why?
Why?
Fair enough, and thanks for that. Just a genuine question , while I understand that the price of goods and services will come down in line with cheaper labour costs, most people's main outlay is their mortgage and those of us who bought in the last few years have a huge amount ot repay every month. How would this be handled? Like I said, its a genuine question, I don't have an economics background.
Very little can be done in respect of mortgages (i.e. if interest rates start to increase) but unsustainably high wages won't help if it results in greater unemployment.
In the longer term, I think we need some sort of structure to aid people in negative equity who need to move for work or trade-up for family reasons, to carry their negative equity with them.
We are more expensive than Germany and Switserland. Forget about China.Where are the Irish manufacturers. Why don't we have campaigns encouraging us to buy Irish or at the very least European.
What is sold in shops only represents a small proportion of total economic activity. China is a low cost centre of choice at the moment but we are not trying to compete with them. We are trying to be a high-tech knowledge based manufacturing base. In that space it is our neighbours that we should be benchmarking ourselves against. Considering the inherent geographical and cultural disadvantages we have, (Germany is on the mainland, Ireland is not. Germany has a name for quality and excellence, Ireland does not.) as well as the economies of scale in production, materials and skills on mainland Europe we should be 10-15% cheaper.With regard to Germany and Switzerland, we are part of the EU, China is not. I am not litterally faling over German and Swiss products in every shop in the country.
Could the govenrment do something radical in this area like get the banks to write off a percentage (maybe 20%) of everyone's mortgage covered by the guarantee? It would free up more money for people to spend and may act as a stimulus to the economy.
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