Irish Economy: cost of our banking crisis is only a little more than normal

[Cassandra Syndrome]

I'm pretty sure that the activity created through foreign employment would be included within GNP.

Yes Indeed Dreaded Estate, GNP is the broadest measure of output measurement. GDP includes all activities within the economy, Consumption, Investment, Government Expenditure and Exports minus Imports.

After that we add net factor income from the rest of the world to get GNP. So afterall our activities in Ireland the profits made by foreign companies and income from abroad made by Irish residents gets added to GDP. But the profits and income that foreign companies and individuals made in Ireland that are taken away from this country are deducted. Hence net factor income.

It is about 20% of GDP that gets absolutely removed out of the economy. Not 1 Euro gets used up in the country to be used in our multiplier. So GDP as a measurement of wealth in Ireland is incorrect, that extra 35 Billion has nothing to do with the country.

Gross National Income is similar to Gross National Product, except for the method of calculation. GNI uses peoples incomes and domestic profit.

[Cassandra Syndrome]

There are other costs here that are much harder to measure- the cost of lives lost due to healthcare cutbacks; the cost to the economy due to decreased investment in education; the costs of people turning to the black economy to get through tough times; the cost of losing the talent and energy of so many of our citizens who will go abroad; and the massive loss of reputation that Ireland Inc has no doubt suffered abroad.

+1

All opportunity, welfare and utility costs. Others such as loss of life to suicide, stress. Breakup of households. Depression, melacholia, emigration, unemployment, crime, poverty, starvation etc.

Economics is a social science and these are behavioural factors that create enormous challenges in tackling this economic depression. Where is the growth going to come from when people are giving up? Who wants the hassle anymore? The headwinds for creating real wealth are severe. And now that the social norms has been established around the saving of the reptilian skin of the elite to the tune of 100 Billion while the peasants are harassed for whatever left they owe, people are not encouraged to comply and accept things. Mass dissent is brewing. And rightly so.