Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://secure.socialistparty.org.uk/issue/640/10333

From The Socialist newspaper, 29 September 2010

Is Ireland's economy going bust?

THE IRISH government has imposed a series of savage austerity measures to reduce the country's large budget deficit. But far from curing its economic problems Ireland's economy shrank by a further 1.2% in the second quarter of 2010, hinting at a double-dip recession.

Unemployment in Ireland now stands at 13%, with the economy having contracted 14% during the current crisis. Dublin Socialist Party councillor Mick Barry asks if Ireland is heading for bankruptcy.

UCD economist, Morgan Kelly, was pilloried by the establishment back in May when he said it was no longer a case of whether Ireland would go bankrupt but when.

Four months on, more and more establishment voices are beginning to entertain the notion that he may have been correct.

Despite the massive cuts programme being implemented by the government, the price of borrowing by the Irish state continues to rise. The 'markets' demand a heavier price despite the government's 'market-friendly' policies.

The Irish state now pays 5.58% on ten-year government bonds, more than Greece pays for its debt in the wake of the European Union/International Monetary Fund bailout.

The Standard and Poor's debt rating downgrade simply reflects the view that there is an increased risk that Ireland will not be able to meet its liabilities.

Matt Cooper wrote in the Sunday Times: "We seem to have got something of a raw deal: public spending has been slashed, the cost of borrowing is going up, and so too is unemployment. The cost will be met by this and future generations. The width of the chasm in the public finances remains so enormous it is difficult to see how cutting current spending and increasing taxes further will do anything other than send the economy into another tail spin."

Kelly's analysis back in May predicted a sovereign debt of 140% of GNP (national wealth) by late 2012. This was based on the state guarantee to the banks costing the taxpayer 33 billion for written off property development loans (out of a total 100 billion), 7 billion for written off business loans (out of a total of 35 billion) and 7 billion for written off mortgage arrears (out of a total of 140 billion).

This would result in bank bailouts ten times greater than the bank bailouts in the USA per head of population.

It is probably too soon to say that bankruptcy for the Irish state is inevitable but equally a Greek-style debt crisis in Ireland even before Christmas cannot be ruled out.

The lessons for the working class movement from recent developments are clear. The massive cuts and tax increases are not being ploughed into an economic recovery. They are being ploughed into a black hole to feed the banks and the insatiable greed of the markets.

The movement must reject all cuts and tax increases and deals such as the Croke Park agreement which facilitate them. A struggle must be launched against the economic policy of the ruling class and a campaign to replace the market economy with a democratic, socialist system must be launched and vigorously pursued.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 29 September 2010:


Anti-cuts campaign

We need action against the cuts... and a socialist political alternative

Fight the cuts! - demonstrate on 23 October

Stop wholesale sell-off in Suffolk

Suffolk Unison member speaks

Councils must defy cuts

Children's homes: Bosses' 'Tribalism' defeated

Fighting to save our services

Service users defend Ealing health centres

Anti-cuts demonstrations planned so far


Socialist Party editorial

No 'lurch to the left' for Labour


Socialist Party news and analysis

Stop the NHS sell-off

Death at Kington Court community care centre shows "regime of neglect"

UN fails to meet development goals

Housing bosses' pay goes through the roof

Unison elections: Socialists stand for a fighting and democratic trade union


Socialist Students

Students: Why we must all protest!

Socialist Students: showing an alternative to cuts and fees

Defend students' democratic rights


Socialist Party feature

Britain on the brink


Socialist Party workplace news

What's the point of the unions?

South Wales: Fight for car workers' jobs

Ballot victory against social enterprise

Bosses try to rewrite history

Workplace news in brief


International socialist news and analysis

Right-wing government re-elected in Sweden

Is Ireland's economy going bust?


Socialist Party feature

Global AIDS crisis: Profits punish poor


 

Home   |   The Socialist 29 September 2010   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Ireland:

triangleBrexit deal no solution to Tory rifts

triangleFighting sexism, violence and capitalism - an international struggle

triangleIrish capitalist state: rotten to the core

triangleIreland: dangerous ideas for the ruling class

triangleIreland: rail workers demand share of 'recovery'

Economy:

triangleAmber warning lights flash on British economy

trianglePowerful picture of the Port Talbot steel workers' struggle

triangleYoung people being strangled by debts

triangleNationalise to save jobs at BAE Systems

State:

triangleUndercover policing legal challenge

triangleWaltham Forest Socialist Party: The state - a warning to the labour movement

triangleCatalan elections: PP humiliated

Debt:

triangleTunisia: explosion of protests against government austerity

triangleA world in crisis, ripe for revolution

International

International

17/1/18

Hong Kong

Stop repression in Hong Kong and China

17/1/18

Tunisia

Tunisia: explosion of protests against government austerity

10/1/18

Iran

Movement challenges Iranian regime

10/1/18

Appeal

Appeal from Iranian independent unions

10/1/18

Sweden

Sweden: School strike against deportations

3/1/18

Catalonia

Catalan elections: PP humiliated

13/12/17

Israel

Trump's incendiary Jerusalem statement reignites Israeli-Palestinian conflict

13/12/17

CWI

A world in crisis, ripe for revolution

6/12/17

US

Trump's tax plan: Robin Hood in reverse

6/12/17

Ireland

Irish capitalist state: rotten to the core

6/12/17

Women

Fighting sexism, violence and capitalism - an international struggle

22/11/17

US

Trump's tax attacks

22/11/17

Australia

Australia: massive yes vote for marriage equality

21/11/17

Zimbabwe

Zimbabwe: Mugabe gone - but his regime remains in power

15/11/17

Minneapolis

USA: Historic vote for Ginger Jentzen campaign in Minneapolis

triangleMore International articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle17 Jan Corbyn's Labour needs 100% anti-cuts strategy and fight for democracy

triangle17 Jan NHS crisis: under pressure from all angles - end cuts and sell-offs!

triangle17 Jan We must fight all council cuts!

triangle16 Jan Home care workers to strike

triangle15 Jan Carillion crisis: Demand action to save jobs and services

triangle12 Jan Outrage against 'monster block' plan

triangle12 Jan Mini-strike wave continues and intensifies

More ...

triangle23 Jan Bristol North Socialist Party: 'You can't have capitalism without racism' - was Malcolm X correct?

triangle23 Jan Cardiff West Socialist Party: How the Poll Tax was beaten

triangle24 Jan Caerphilly Socialist Party: The Carillion scandal

triangle24 Jan Cardiff Central Socialist Party: Carillion collapse - Watershed moment for public services

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

January 2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2