In a previous post we saw that public sector labour costs are below-average by EU-15 standards. The argument that Irish public sector workers are ‘over-paid’ in relation to their European counterparts holds no water whatsoever. However, that doesn’t answer the charge that, regardless of comparative costs, we just have to cut public sector wages because [...]

With industrial action in the public sector ramping up a couple of notches, it is worth revisiting a couple of issues in relation to pay. A critical issue is the fiscal benefit or otherwise that accrues to the Exchequer from cutting public sector wages - I will examine this in the next post. Here, let’s [...]

Yesterday I talked to Michael Burke, an economist with 25 years experience working in the Financial Services sector in the UK, including a 5 years period as a senior economist in Citibank. Recently he entered the economic debate here by saying that the Government’s current strategy of cutting government spending could lead to an even [...]

The sage does no-thing, but leaves no-thing undone.’
So wrote Lao Tsu in what is now a major religious text. There may be something in this when it comes to fiscal policy.
There are, broadly speaking, three things a Government can do when the recessionary fires break out in the house.

It can do nothing and wait [...]

Originally published today on Progressive Economy.
Ever have one of those moments when you just know everyone else has got it wrong and you’ve got it right? When you say, I don’t care what the fashion is, showing off your brand of boxer shorts in public is plain daft? Well, have some sympathy then for [...]

Micheal Taft of Notes on the Front (and ILR) was taking part in a Prime Time panel discussion last night about our ever increasing deficit and whether we have reached the bottom. Also on the  panel were Dan O’Brien, Senior Economist, Economist Intelligence unit, and Jim Power, Chief economist, Friends First.
Visit the Prime Time home [...]

A good friend made a bet with me in January. He wagered the economy would contract by 10 percent or more by the end of the year. I gladly took the bet. But he rang me yesterday wanting to know if I wanted to pay up now. For the news that the economy contracted by [...]