On the benefits of letting the economy run hot, I completely agree!
Think of what happens when inflation is low and interest rates remain low for a very long time. Wages don’t rise, what little excess income one can earn gets very little risk free growth, and the value of long dated assets are discounted at lower rates, inflating their value. That’s the houses and pensions that older generations have, and which younger generations are struggling to accumulate enough wealth to buy.
If we want a society that operates as a meritocracy with opportunities for social mobility, I agree that higher inflation and higher interest rates compared to the decade pre COVID should be welcomed. In my opinion, that arbitrary 2% target for central banks is long overdue a rethink. But admittedly there are obvious difficulties with double digit inflation.
One way to think about interest rates is that they are just getting back to 'normal'. Where they 'should' be. Roughy. Where is that? Where rates are at levels consistent with absence of crisis.
EIOPA who set the Solvency II regulations for the insurance industry have determined the long term rate should revert to 3.4%. But that used to be 4.2%. So even the long term view of what is a “normal” long term average rate is volatile!
If everything is a priority then nothing is a priority, and we end up with budgets giving one for everyone in the audience.
At a time when we are looking to build lots more houses in an at-capacity construction labour market, and in the backdrop of the Gombeens who organised the Children’s hospital lined up to manage the next infrastructure fiasco, why on earth would I have any confidence in throwing cash at big infrastructure projects?
If we were to engage in infrastructure spend I would be in favour of ramping up public sector reforms and IT efficiency spend in the civil service. Let’s get more done with the money we pump in.
Totally agree with reforms. And I am as nervous as you about the ability for spending to be wasted either via inefficiency and/or inflation. But infrastructure has to be built.
Interesting seeing politicians giving lectures about excess spending!It’s totally gone beyond just tubridy now.politicians are loving their day out with the cameras on them milking it to the last with their outage etc.RTE made mistakes no doubt but if someone offers you an extra 75 k why would you say no.I guess Tubridy was thinking who be stupid enough to do that . RTE would of course.
If I was offered 75k extra from the private sector I’d accept it no bother, regardless of who disclosed it where if at all. But if it’s public sector money and it’s not being disclosed you’d have to expect the general public to be very annoyed as they’ve every right to know about it.
The mad thing is, tubridy was already paid a whopping amount. It’s not as if this extra 75k would have moved the dial.
The way to insulate your “talent” against a cross-the-board pay cut is to give them a pay rise months in advance with a nod and a wink saying a cross the board pay cut is coming and we need you on board. And that way they can pretend the pay is being shared. That type of approach was rife in the wake of the financial crash.
Maybe we should just have everyone's tax returns available on-line. The best governance rule used to be 'would I be happy to see x in the Sunday papers' Now it is 'would I be happy to see x on tic-tok'.
Yes I see your point but tubs has nothing to do with the publishing part that’s RTE concern. Politicans are over playing it with more rules regulations etc as if that’s the answer to everything and they want the credit for the so called solving the problem. It’s gone way too far and only going to get worse.
Indeed this story is going to snowball. What started off with one issue has now opened the door to far wider discussions about what RTE get up to. And the populists will be licking their lips for sure.
On the benefits of letting the economy run hot, I completely agree!
Think of what happens when inflation is low and interest rates remain low for a very long time. Wages don’t rise, what little excess income one can earn gets very little risk free growth, and the value of long dated assets are discounted at lower rates, inflating their value. That’s the houses and pensions that older generations have, and which younger generations are struggling to accumulate enough wealth to buy.
If we want a society that operates as a meritocracy with opportunities for social mobility, I agree that higher inflation and higher interest rates compared to the decade pre COVID should be welcomed. In my opinion, that arbitrary 2% target for central banks is long overdue a rethink. But admittedly there are obvious difficulties with double digit inflation.
One way to think about interest rates is that they are just getting back to 'normal'. Where they 'should' be. Roughy. Where is that? Where rates are at levels consistent with absence of crisis.
EIOPA who set the Solvency II regulations for the insurance industry have determined the long term rate should revert to 3.4%. But that used to be 4.2%. So even the long term view of what is a “normal” long term average rate is volatile!
If everything is a priority then nothing is a priority, and we end up with budgets giving one for everyone in the audience.
At a time when we are looking to build lots more houses in an at-capacity construction labour market, and in the backdrop of the Gombeens who organised the Children’s hospital lined up to manage the next infrastructure fiasco, why on earth would I have any confidence in throwing cash at big infrastructure projects?
If we were to engage in infrastructure spend I would be in favour of ramping up public sector reforms and IT efficiency spend in the civil service. Let’s get more done with the money we pump in.
Totally agree with reforms. And I am as nervous as you about the ability for spending to be wasted either via inefficiency and/or inflation. But infrastructure has to be built.
Interesting seeing politicians giving lectures about excess spending!It’s totally gone beyond just tubridy now.politicians are loving their day out with the cameras on them milking it to the last with their outage etc.RTE made mistakes no doubt but if someone offers you an extra 75 k why would you say no.I guess Tubridy was thinking who be stupid enough to do that . RTE would of course.
If I was offered 75k extra from the private sector I’d accept it no bother, regardless of who disclosed it where if at all. But if it’s public sector money and it’s not being disclosed you’d have to expect the general public to be very annoyed as they’ve every right to know about it.
The mad thing is, tubridy was already paid a whopping amount. It’s not as if this extra 75k would have moved the dial.
The way to insulate your “talent” against a cross-the-board pay cut is to give them a pay rise months in advance with a nod and a wink saying a cross the board pay cut is coming and we need you on board. And that way they can pretend the pay is being shared. That type of approach was rife in the wake of the financial crash.
Maybe we should just have everyone's tax returns available on-line. The best governance rule used to be 'would I be happy to see x in the Sunday papers' Now it is 'would I be happy to see x on tic-tok'.
Yes I see your point but tubs has nothing to do with the publishing part that’s RTE concern. Politicans are over playing it with more rules regulations etc as if that’s the answer to everything and they want the credit for the so called solving the problem. It’s gone way too far and only going to get worse.
Indeed this story is going to snowball. What started off with one issue has now opened the door to far wider discussions about what RTE get up to. And the populists will be licking their lips for sure.
Thanks so much Mark - please tell your friends! :)