we have artificially high Corporation Tax receipts from foreign multinationals. I don't think that they are sustainable.
I wouldn't regard the national debt as a "fly in the ointment". It's actually a massive sword hanging over us. When interest rates rise, we will be in deep, deep trouble.
Unfortunately, like Goldilocks this is a fairytale. It is one of the most basic tenets of macroeconomics that growth and inflation go together. If we are not seeing inflation we should be asking pointed questions about why not, not marveling at ourselves having arrived in a magic kingdom
When you say, "average incomes are at their highest ever in the country" you may indeed be correct. However me thinks this may be very misleading because the very, very, high incomes earned by the few make the average amounts look and sound good when in fact a massive amount of people are on very low incomes indeed. As Brendan says, when interest rates rise this scenario will hit the fan in a big, big, way. Personally and I know i'm in the minority, I feel this is happening already but i'd imagine Xmas and all its crazy spending will once again camouflage this, but not for long.
I agree. Although a lot of people are giving out, I think we will look back on this period quite fondly. The only fly in the ointment is obviously the national debt, which has been ballooned to 200bn mainly as a result of spending more than we have earned since 2008 and capitalising the banks (20% of the national debt).
If our national debt was lower we would be on the hock. Unfortunately, the private economy is doing well but being pulled back by the need to finance an ever-expensive government
War?! Are you saying we should be investing in the military instead of wasting money in health and education etc.?
Ireland today really is in an economic sweet spot. This is even better than the Goldilocks scenario, growth hot enough to reduce unemployment but so hot as to stoke inflation. We actually have a superGoldilocks situation, growth is fast enough that unemployment is falling like a stone, while inflation is almost non existent due to our membership of the Euro. Long may it continue.
Hi BS
Can you paint a picture for us of this "new global economic order"? How will it come about? Will it look anything like the failed Communist experiment that blighted much of the 20th century?
In the meantime, are you still an advocate of gold and crypto currencies as a home for our savings?
We've been lucky and, despite the moaning and the pressure from the populist left, we've had reasonably good governments since then.Nearly seven years later and incomes have continued to grow, national debt has fallen as a % of GDP and GNI, numbers at work are up, and over reliance on CT income is still seen as a threat (in other words 7 years on its still a boon).
The consequence of all this success is a housing crunch, everyone wants to own a slice of this success.
The initial post was not a prediction, just a comment on where we were then, and I suggest despite Covid, war and interest rates things have continued in that sweet spot since then.
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