Opinion This is a very dangerous pro-cyclical budget - the opposite of what we need

Discussion in 'Budget 2019' started by Brendan Burgess, Oct 9, 2018 at 2:20 PM.

  1. Brendan Burgess

    Brendan Burgess Founder

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    No surprises.

    Despite having lotto wins in Corporation Tax and low interest rates, we are still borrowing to run the country .

    And paying €5 extra on social welfare to make it even more attractive not to work.

    When the next crisis hits, we will be in a deep deficit and will find it hard to borrow to cover it.

    Brendan
     
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  2. Delboy

    Delboy Frequent Poster

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    Last edited: Oct 9, 2018 at 4:34 PM
    17bn for health and nearly 11bn for education. The next crash will hurt and hurt bad.
    Welfare increase a pure vote hook...at a time of near full employment, that makes no other sense.

    By my calculations that's the 3rd budget in a row where those in welfare have gotten more per month than I myself have. And FG are claimed as right wing by their critics :(
     
    Last edited: Oct 9, 2018 at 4:34 PM
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  3. Firefly

    Firefly Frequent Poster

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    I firmly believe this kind of codology is to suppress the rise of Sinn Fein....
     
  4. TheBigShort

    TheBigShort Frequent Poster

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    Good one, suppress the rise of SF by implementing SF policies! :confused:
     
  5. TheBigShort

    TheBigShort Frequent Poster

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    I haven't seen the detail of the budget so far but from what I have observed, in the main, it is a good budget for the country.
    This will drive the domestic economy forward, we will now start to enter a period of inflation, matched by real wage growth.
    Private sector debt needs to be kept in check, if it is allowed to run loose again then we will be in big trouble.
     
  6. Purple

    Purple Frequent Poster

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    How will increasing welfare and punishing hard work drive the economy forward?
     
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  7. Purple

    Purple Frequent Poster

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    Yep, it's a strange one but that's what's happening.
    We are repeating the mistakes of the boom.
     
  8. RETIRED2017

    RETIRED2017 Frequent Poster

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    Did ya' not notice they were implementing these same old policies long before SF had a TD around the place,:confused:
     
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  9. TheBigShort

    TheBigShort Frequent Poster

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    Even though SF barely had any representation during the '00's.
     
  10. TheBigShort

    TheBigShort Frequent Poster

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    Where is hard work being punished?
     
  11. Purple

    Purple Frequent Poster

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    Bertie the socialist was there then. Now we have the SF Socialists.
     
  12. Purple

    Purple Frequent Poster

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    By taking over 50% of what people earn if they choose to work harder and earn more.
     
  13. Delboy

    Delboy Frequent Poster

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    By giving more to those on welfare v's those who work in the last 3 budgets for example
     
  14. RETIRED2017

    RETIRED2017 Frequent Poster

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    Last edited: Oct 9, 2018 at 4:13 PM
    SF would not get away with the thing FG/FF are getting away with , Purple has no where to go so he will be voting for FG/FF to take over 50% of what he earns:oops::oops:along with all the other who have only FG/FF:confused: vote for more to be taken,
     
    Last edited: Oct 9, 2018 at 4:13 PM
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  15. NiallSparky

    NiallSparky New Member

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    Does the contribution to the rainy day fund count towards the budget deficit? If this was excluded, would it be a balanced budget?

    Some of the giveways on current expenditure are still a bit grating, but would be interested to know about the above.
     
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  16. TheBigShort

    TheBigShort Frequent Poster

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    But tax band has increased by €750 a year and third band of USC has reduced from 4.75% to 4.5%?

    Basically everyone gets a €5? But only if you earn over €35,500. If you earn less then €34,750 ypu cant take advantage of the increase in the band.
     
  17. Purple

    Purple Frequent Poster

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    A fiver, really? It that going to incentivise someone to work harder or later, to risk more and take on more stress and hassle? All of which are required if they are going to create jobs and wealth.
     
  18. Brendan Burgess

    Brendan Burgess Founder

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    A very good question. I have done a summary here:

    Summary of the exchequer balance after the Budget

    upload_2018-10-9_16-50-18.png
     

    Attached Files:

  19. Opus2018

    Opus2018 Registered User

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    Hi Brendan,

    I don't think the Rainyday fund affects the deficit as it's recorded as being more of a pure financial transaction from a Central Government/General Government viewpoint. All the happens is cash moves from the Exchequer account to another account which is likely to be an Extra Budgetary Fund (like ISIF and formerly the National Pension Reserve Fund). In other words there is no expense and revenue items to record on the non-financial side of the accounts.

    Also don't forget, the General Government sector could run an overall budget surplus via the Social Security Fund and Local Government wont be included in the Exchequer figures.

    Best,

    Opus 2018.
     
  20. Brendan Burgess

    Brendan Burgess Founder

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    Thanks Opus

    I am trying to get my head around it.

    I suppose we know that it does not affect the deficit in real life.

    But what are they saying about it?

    The Minister says they have balanced the books. I don't think that they have.

    Brendan