"The younger generation are screwed, and the system is stacked against them"

Agreed, you can't just flick a switch. But you can deal with the bottlenecks, the main one being skilled construction manpower. We don't have an adequate indigenous supply. But there's plenty available throughout the world. Let's offer visas to suitably skilled individuals, with citizenship available should they so wish after five years of working and contributing to the tax system here.
Simultaneously, offer massive ppp contracts on favourable tax terms to firms who supply and build rapid modular for their own workers.
As for other constraints, we have the land, materials are not a problem, and we can and should eliminate some bureaucratic obstacles. Not too hard overall.
 
Protocol said:
@Purple,

it's tempting to link the recent rise in inflation to QE.

The ECB started QE in 2014, phased it out, then restarted due to COVID.

However, I asked a senior Economics prof (the type who might be on the news), and he stated the recent inflation of 2021-2023 is not due to QE.
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Yes, but capital items like housing aren’t counted in the calculation of inflation. The cost of servicing the credit is but artificially low interest rates meant that such costs were not inflationary.
 
Protocol said:
@Purple

Here is a quote from Scott Sumner on the effects of QE. When CB buy huge amounts of financial assets, they pay for them by creating more bank reserves (liabilities of the CB).


"Paul Krugman developed the modern framework for thinking about liquidity traps. Krugman showed that a large injection of reserves into the banking system might fail to significantly boost inflation when the economy is stuck at the zero lower bound for interest rates. This possibility is not because large increases in the “money supply” (i.e., the broader aggregates) would fail to boost inflation. Rather, Krugman showed that a large increase in bank reserves would not even boost the broad money supply if the base money injection were viewed as temporary. Instead, banks would just sit on the extra excess reserves and the money multiplier would fall as the monetary base increased. As a result, the broader aggregates would be largely unaffected.

In the years after Krugman wrote the paper, major central banks did inject large quantities of base money into their economies on a number of occasions, and in many cases, these injections had relatively little impact on inflation or the broader money supply. Instead, the extra base money was mostly held as excess reserves, just as Krugman predicted."


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Artificially low interest rates, negative at times, drove capital looking for a return into real estate across the western world. The QE money kept banks capitalised and the system working while that happened.
 
Purple said:
Artificially low interest rates, negative at times, drove capital looking for a return into real estate across the western world. The QE money kept banks capitalised and the system working while that happened.
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also artificially low interest rates allowed governments like our own to keep borrowing and spending (even though they also had huge corporate tax receipts aswell), and all this was inflationary especially in the irish economy. Our economy was juiced up by both FDI receipts and QE
 
Wealth tax on property will deprive younger children of not so wealthy parents or less wealthy children and grandchildren.Where will the taxes be spent?The state has a way of wasting this
 
triggs said:
Wealth tax on property will deprive younger children of not so wealthy parents or less wealthy children and grandchildren.Where will the taxes be spent?The state has a way of wasting this
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If the parents aren't that wealthy then they won't have that much property tax to pay. If you own a high value property then you are wealthy. Don't confuse wealth with income.
The purpose of property tax is to keep property prices low. High property prices are bad for the economy. They take capital away from wealth creating sectors of the economy.

The State will always waste money. That's the nature of governments and, more specifically, the State Sector.
 
Purple said:
If the parents aren't that wealthy then they won't have that much property tax to pay. If you own a high value property then you are wealthy.
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No. You are comfortable, perhaps. Wealthy is a different matter entirely.

Purple said:
Don't confuse wealth with income.
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Yes, different concepts entirely. Somebody should tell Sinn Fein.

Purple said:
The purpose of property tax is to keep property prices low.
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Is it? News to me. When introduced here, it was all about diversifying the tax base and reducing taxes on labour. How's that working out for you?

Purple said:
High property prices are bad for the economy. They take capital away from wealth creating sectors of the economy.
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To a point. More relevant perhaps is that they stop people moving to where work, entrepreneurial or educational opportunities may exist. Easily solved by expanding supply. See my post #21 above.

Purple said:
The State will always waste money. That's the nature of governments and, more specifically, the State Sector.
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Amen!
 
Right Winger said:
No. You are comfortable, perhaps. Wealthy is a different matter entirely.
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If you own a lot of wealth you are wealthy. The hint is in the name. You may not have liquid assets but that's your choice.
Right Winger said:
Yes, different concepts entirely. Somebody should tell Sinn Fein.
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Indeed they should. Their "Wealth Tax" is nothing of the sort. It's an income and liquid asset tax. They exclude around 80% of all the wealth in the country. If you are old and rich then vote for the Shinners. If you are young and starting off in life they are the last Party you should vote for.
Right Winger said:
Is it? News to me.
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Every day is a school day.
Right Winger said:
When introduced here, it was all about diversifying the tax base and reducing taxes on labour. How's that working out for you?
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Yep, it certainly diversified the tax base a little, but it's only a token level tax. It should be much higher. Unfortunately our left wing government has vastly increased State spending over the last decade so they take more and more private income and redistribute it. We Irish are happy to be treated like children and want to State to be our Mammy.
Right Winger said:
To a point. More relevant perhaps is that they stop people moving to where work, entrepreneurial or educational opportunities may exist. Easily solved by expanding supply. See my post #21 above.
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It's extremely hard to expand supply. See any number of my previous posts on that topic for the many reasons why.
 
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