Spending more money will not solve inflation issue. To tackle inflation would crest a recession and gov won’t allow that so therefore its inflation the trade off.
Jim & Chris, I have no doubt that this government would like to hold back a bit on the spending, but the political climate and media questioning is rewarding Sinn Fein, PBP and other leftists for promising the sun, moon and stars whilst also promising to tax the life out of wealth-creators and business people. Our industrial policy here in Ireland has been an amazing success but government get absolutely no credit for the massive tax intake which bankrolls all the public spending. It is worth noting that Germany's largest utility company, RWE, a major international investor, has warned in the UK that it will reconsider its planned £15 billion investment in renewable energy if a windfall tax is imposed on its electricity generators' profits. RWE's chief executive warned that it is monitoring political decisions and regulations and that "everybody would reconsider" if things change. This is a rational response from an international business with many options for how and where it deploys its capital. Ireland's income tax base and corporate tax base are dominated by the FDI multinational sector as you have pointed out many times on the podcast. Anyone who has ever operated at a senior level in a large international business will recognise that public policy, including taxation matters, along with regulatory policy matters, are monitored when making investment decisions.
Sinn Fein and People Before Profit support windfall taxation on energy companies. For leftists such as these, the benefits of globalisation and foreign investment are assumed to be both automatic and permanent.
These two parties also want to introduce a tax on private capital itself, not just on capital gains, by means of a so-called Wealth Tax. Sinn Féin say they can put more taxes on higher earners and on private wealth and that the result will be more revenue for Ireland's exchequer. The left's assumption is that MNCs will stay and continue investing, that high earning employees are not mobile and that they are willing to remain in Ireland if Sinn Féin or People Before Profit reduce and remove their personal tax credits. It is also assumed that those earning over €140,000 will be willing to pay a brand new additional "solidarity tax" planned by Sinn Féin.
People Before Profit's Paul Murphy says that salaries should be capped at €150,000 as part of a full roll-out of socialism in this country.
In my view Ireland's hugely important foreign direct investment sector is unlikely to benignly accept Sinn Fein and People Before Profit tax policies if ever they are implemented in this country. More focus must be applied to the manifestos and rhetoric of SF, PBP and the other leftist politicians, lobbyists and academics, before it is too late.
Sadly the government has no policy ideas to foster additional growth. They throw money at things without restrictions. Look at our National Broadband fiasco, our lack of wind, solar and wave electricity generation and the utter madness of paying huge sums to hotels for refugees… all outgoing and no feeding will dry that money tree up very quickly🥲
Indeed. The engines on the helicopter money have now cooled - a post pandemic solution (to a problem that didn’t exist) pedalled by certain economic commentators. Similar to how Gordon Brown famously said he abolished boom and bust only for the Great Recession to happen, many champions of MMT had thought the concept of inflation was also abolished, demanding that governments now print money unreservedly and hand it to the people they believe deserve it the most - usually people like themselves!
And now that inflation is back with a bang, all the self proclaimed Keynsians opposing austerity in the wake of the Great Recession seem to have abandoned their beloved economic philosophy in favour of the opposite - a populist raising of tax thresholds and increases in government expenditure to “fight inflation” (not fuel it of course!).
What I would have liked to have seen is very little from government and a building up of some surplus funds. Maybe strike a deal with energy companies to smooth the energy price increases out over time, providing temporary state subsidy on the basis of clawing it back through higher energy prices in the future - smoothing the hikes out. But little beyond that.
I see our finance ministers admit we can’t chase inflation while at the same time say we will increase spending by 6.5 billion. Why no one in the media even challenges this policy is amazing. Is there any public figure / media commentator that will go on tv and say only way to solve inflation is cut spending and stop printing money. Also a 9 billion (at least euro )metro on the way. Yet politicans want to stop inflation. Where the cost benefit analysis of that mentioned.
Spending more money will not solve inflation issue. To tackle inflation would crest a recession and gov won’t allow that so therefore its inflation the trade off.
Jim & Chris, I have no doubt that this government would like to hold back a bit on the spending, but the political climate and media questioning is rewarding Sinn Fein, PBP and other leftists for promising the sun, moon and stars whilst also promising to tax the life out of wealth-creators and business people. Our industrial policy here in Ireland has been an amazing success but government get absolutely no credit for the massive tax intake which bankrolls all the public spending. It is worth noting that Germany's largest utility company, RWE, a major international investor, has warned in the UK that it will reconsider its planned £15 billion investment in renewable energy if a windfall tax is imposed on its electricity generators' profits. RWE's chief executive warned that it is monitoring political decisions and regulations and that "everybody would reconsider" if things change. This is a rational response from an international business with many options for how and where it deploys its capital. Ireland's income tax base and corporate tax base are dominated by the FDI multinational sector as you have pointed out many times on the podcast. Anyone who has ever operated at a senior level in a large international business will recognise that public policy, including taxation matters, along with regulatory policy matters, are monitored when making investment decisions.
Sinn Fein and People Before Profit support windfall taxation on energy companies. For leftists such as these, the benefits of globalisation and foreign investment are assumed to be both automatic and permanent.
These two parties also want to introduce a tax on private capital itself, not just on capital gains, by means of a so-called Wealth Tax. Sinn Féin say they can put more taxes on higher earners and on private wealth and that the result will be more revenue for Ireland's exchequer. The left's assumption is that MNCs will stay and continue investing, that high earning employees are not mobile and that they are willing to remain in Ireland if Sinn Féin or People Before Profit reduce and remove their personal tax credits. It is also assumed that those earning over €140,000 will be willing to pay a brand new additional "solidarity tax" planned by Sinn Féin.
People Before Profit's Paul Murphy says that salaries should be capped at €150,000 as part of a full roll-out of socialism in this country.
In my view Ireland's hugely important foreign direct investment sector is unlikely to benignly accept Sinn Fein and People Before Profit tax policies if ever they are implemented in this country. More focus must be applied to the manifestos and rhetoric of SF, PBP and the other leftist politicians, lobbyists and academics, before it is too late.
Sadly the government has no policy ideas to foster additional growth. They throw money at things without restrictions. Look at our National Broadband fiasco, our lack of wind, solar and wave electricity generation and the utter madness of paying huge sums to hotels for refugees… all outgoing and no feeding will dry that money tree up very quickly🥲
Indeed. The engines on the helicopter money have now cooled - a post pandemic solution (to a problem that didn’t exist) pedalled by certain economic commentators. Similar to how Gordon Brown famously said he abolished boom and bust only for the Great Recession to happen, many champions of MMT had thought the concept of inflation was also abolished, demanding that governments now print money unreservedly and hand it to the people they believe deserve it the most - usually people like themselves!
And now that inflation is back with a bang, all the self proclaimed Keynsians opposing austerity in the wake of the Great Recession seem to have abandoned their beloved economic philosophy in favour of the opposite - a populist raising of tax thresholds and increases in government expenditure to “fight inflation” (not fuel it of course!).
What I would have liked to have seen is very little from government and a building up of some surplus funds. Maybe strike a deal with energy companies to smooth the energy price increases out over time, providing temporary state subsidy on the basis of clawing it back through higher energy prices in the future - smoothing the hikes out. But little beyond that.
I see our finance ministers admit we can’t chase inflation while at the same time say we will increase spending by 6.5 billion. Why no one in the media even challenges this policy is amazing. Is there any public figure / media commentator that will go on tv and say only way to solve inflation is cut spending and stop printing money. Also a 9 billion (at least euro )metro on the way. Yet politicans want to stop inflation. Where the cost benefit analysis of that mentioned.