UK and German politics: 3 ring circus compared to grown-up governance. Inflation: Summers ponders a US recession yet US equities are at all all-time high.
UK and German politics: 3 ring circus compared to grown-up governance. Inflation: Summers ponders a US recession yet US equities are at all all-time high.
Jim, I think it is way to early to call the next general election. You say it is "inevitable" that Sinn Féin will lead the next government, but I take a different view. In the months ahead and through the next couple of years, many business people (the investment community has already started) will assess Sinn Féin policy and what it will mean for them. The so-called housing crisis is a global issue - any country with strong economic growth has a problem with housing at the moment. In Ireland, public denigration, high taxation and heavy regulation have resulted in well over 20,000 private landlords (Investors) exiting the private rental sector over the past few years and thousands more have submitted their termination notices. The left-wing policy agenda which our present government has started to adopt under intense opposition and media pressure, has been been a key driver of these policies. The exodus of Irish rental property investors has significantly exacerbated the supply shortage. However the negative rhetoric and vilification, led by political parties of the left, has been most loudly targeted at large multinational investment firms in the private rental market and now one firm has publicly declared its position on this - Allianz.
Against this backdrop, the success of the pro-business Irish government policy over the past three decades in attracting inward multinational investment is undeniable. This investment stretches across a range of sectors and the redistributive benefits of the economic impact of these companies has been exceptional. Irish government policy has been almost unique in the developed world in avoiding increasing income inequality. The decline in income inequality here is startling in that it bucks the trend of most developed countries. We are very fortunate to live in Ireland; most of the world's comparative assessments assert this in survey after survey (e.g. United Nations indices). That said, we are now well on the road to killing the golden goose in the rush of a substantial segment of the public to left-wing populism. The narrative against business, capital and investment has fundamentally changed with the growth of left-wing populism. Disparaging business in any sector finds no good end and the insurance multinational firm Allianz has now decided to cease engagement on property investments in Ireland due to potential reputational risk for its insurance business. When the political, regulatory and economic climate of a country turns against foreign investors they look elsewhere - the world is a big place. The analysis they undertake and the decisions they reach are swift. The foreign banks are gone or are in the process of departing. Now, publicly, we have a large multinational investment and insurance firm reviewing its investment decisions as they relate to Ireland. What sector might be next and what investment decisions have been reached behind closed doors and not declared publicly?
We also know that the employees of multinationals are well paid and their senior management teams are among the best-paid in our society. With presently high taxes in Ireland on incomes, employment and capital gains, why would these people choose to invest further here and pay even more via Sinn Féin's proposed additional taxes such as a new 5% high income levy, removing tax credits on higher incomes, a new annual wealth tax on assets held by the better-off, introducing a new 15.75% rate of employer’s PRSI on higher salaries, increasing capital acquisitions tax, reducing the pension Standard Fund Threshold and the earnings limit?
We need all our sensible commentators across all Irish media media to initiate a national debate on the mobility of domestic and multinational capital and investment. I am sure you know what will happen if Sinn Féin gets to implement the policies listed above. It is easy to see that inward investment and indeed domestic investment will reduce. Many of the wealthiest will depart and the resulting recession will have many consequences. Ironically one of the consequences will be much lower housing demand and hey presto, the so-called housing crisis is no longer such a massive issue here.
Jim, I think it is way to early to call the next general election. You say it is "inevitable" that Sinn Féin will lead the next government, but I take a different view. In the months ahead and through the next couple of years, many business people (the investment community has already started) will assess Sinn Féin policy and what it will mean for them. The so-called housing crisis is a global issue - any country with strong economic growth has a problem with housing at the moment. In Ireland, public denigration, high taxation and heavy regulation have resulted in well over 20,000 private landlords (Investors) exiting the private rental sector over the past few years and thousands more have submitted their termination notices. The left-wing policy agenda which our present government has started to adopt under intense opposition and media pressure, has been been a key driver of these policies. The exodus of Irish rental property investors has significantly exacerbated the supply shortage. However the negative rhetoric and vilification, led by political parties of the left, has been most loudly targeted at large multinational investment firms in the private rental market and now one firm has publicly declared its position on this - Allianz.
Against this backdrop, the success of the pro-business Irish government policy over the past three decades in attracting inward multinational investment is undeniable. This investment stretches across a range of sectors and the redistributive benefits of the economic impact of these companies has been exceptional. Irish government policy has been almost unique in the developed world in avoiding increasing income inequality. The decline in income inequality here is startling in that it bucks the trend of most developed countries. We are very fortunate to live in Ireland; most of the world's comparative assessments assert this in survey after survey (e.g. United Nations indices). That said, we are now well on the road to killing the golden goose in the rush of a substantial segment of the public to left-wing populism. The narrative against business, capital and investment has fundamentally changed with the growth of left-wing populism. Disparaging business in any sector finds no good end and the insurance multinational firm Allianz has now decided to cease engagement on property investments in Ireland due to potential reputational risk for its insurance business. When the political, regulatory and economic climate of a country turns against foreign investors they look elsewhere - the world is a big place. The analysis they undertake and the decisions they reach are swift. The foreign banks are gone or are in the process of departing. Now, publicly, we have a large multinational investment and insurance firm reviewing its investment decisions as they relate to Ireland. What sector might be next and what investment decisions have been reached behind closed doors and not declared publicly?
We also know that the employees of multinationals are well paid and their senior management teams are among the best-paid in our society. With presently high taxes in Ireland on incomes, employment and capital gains, why would these people choose to invest further here and pay even more via Sinn Féin's proposed additional taxes such as a new 5% high income levy, removing tax credits on higher incomes, a new annual wealth tax on assets held by the better-off, introducing a new 15.75% rate of employer’s PRSI on higher salaries, increasing capital acquisitions tax, reducing the pension Standard Fund Threshold and the earnings limit?
We need all our sensible commentators across all Irish media media to initiate a national debate on the mobility of domestic and multinational capital and investment. I am sure you know what will happen if Sinn Féin gets to implement the policies listed above. It is easy to see that inward investment and indeed domestic investment will reduce. Many of the wealthiest will depart and the resulting recession will have many consequences. Ironically one of the consequences will be much lower housing demand and hey presto, the so-called housing crisis is no longer such a massive issue here.
Why is heating oil up so much…. 71.4%. How did that happen??