The day the Troika came to town was a dark day for the Irish. Troika is a Russian word meaning a sled drawn by three horses or a dance. For the Irish people it was both a dance, but to a grating, dissonant tune, and like being pulled in three directions by the horses.
The failure that led to the Troika’s arrival was compounded because it occurred not too long after the best period of economic and social progress – ever – in the long, sad history of this little island.
Ireland, one of the poorest of the poor European countries, had pulled itself up and turned itself into one of the wealthiest European states in a remarkably short period. The Celtic Tiger years of 1987 to 2001 were a 14-year period of stunning economic and social success. A confluence of sound economic policies and prior investment saw a doubling of the net income of average workers, a doubling of living standards and a doubling of employment in just 20 years.
While there was growth in jobs and incomes in the 7-year period after 2001 until the Crash of 2008, policy was now boosting a massive bubble. It was based on uber-liberal economic polices of de-regulation, privatisation, massive tax shifting from direct to indirect taxes, many of which were based on property, large tax “incentives” and pro-cyclical fiscal policies.
In the latter years of the boom it may have appeared as if ultra free market liberalism was working, but it was a gross illusion. We lost almost a decade of economic progress, many Irish businesses closed, all Irish banks collapsed, unemployment and emigration soared and we lost our dignity.
In addition to generating economic collapse through its liberal economic policies, the Government made one further astoundingly reckless economic decision on 30 September 2008. It guaranteed all the creditors of all the private Irish banks with unlimited taxpayers’ money. The creditors were foreign banks, hedge funds, etc. and the cost was totally unknown then. It turned out to be €64bn – the equivalent to two years’ tax revenue.…Social Europe Journal
"My Experience With The Troika In Ireland"
Paul Sweeney
Paul Sweeney was Chief Economist with the Irish Congress of Trade Unions.
7 comments:
same old: EU institutions need to change, EU needs to be reformed etc.
It is precisely this endless and empty rhetoric that has brought us where we are today.
This guy will always consider me ignorant and bad person when I say that this nightmare needs to end. We don't need this monetary union and the sooner we end It the better off we all are.
The Irish problem was summed up in a few short paragraphs at the beginning of this piece
Anybody and anything doing whatever brutality they wish to do to the Irish. All accepted cheerfully as long as they are not British.
The "growth" period 1987 to 2007 was one of the biggest sociological disasters ever to hit the island.
During that time one religious dogma was replaced by another.
Gross liberal materialism .....
Once the new religion was firmly embedded we experienced payback time.
Both the inflation period and deflation time period was the same event.
Although we really need to go back a bit further.
A very similar although slightly smaller credit boom happened during the 1970s. (EEC entry 1973)
This was centered on agriculture rather then housing (although many houses were built)
Banks lent on the strength of EEC agri funds creating a new petro head country and western culture in the bogs.
This went bust when Ireland became more fully integrated with the debt deflationary euro economy in 1979.
A very large recession / mini depression hit the country during the 80s
The surplus wealth of austerity during this time was then subsequently concentrated.
@Neil
McWilliams is generally recognised as a corporatist / atlantist west Brit.
The not so wild geese of the MTV lost generation of the 80s who travelled to London to help get wealth further concentrated.
He has little moral credit.
We however gladly accept Englishmen who wish to reverse the Tudor and post Tudor agri export practice's .....
The future is local trade and not mindlessly burning kerosene for little or no return.
https://m.youtube.com/watch?v=2E2g0TJVdJ4https%3A%2F%2Fm.youtube.com%2Fwatch%3Fv%3D2E2g0TJVdJ4
You support what that farmer is doing? Does the EU encourage development of marginal farmland?
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