Union wage demands to amplify "wave of creative destruction"

[patslatt]

Joseph Schumpeter,the Austrian economist,colourfully noted "capitalism's waves of creative destruction",the Darwinian process in which weak and uncompetitive firms and even whole industries are wiped out. This destruction usually reaches its heights in recessions. It is creative in that elimination of weak firms through competitive market pressures makes room for more efficient firms to take over the markets vacated by the weak firms,enabling greater economies of scale and cost efficiencies. It is a very unpleasant experience,as Ireland learned in the 1980s. At times,the economic destruction can be so great as to threaten economic collapse but this has the advantage of concentrating the minds of governments,businesses and workers on their economic survival.

Today,Ireland's experience of the credit crunch and weak export markets have started a new bout of creative destruction. Likely candidates for destruction include financially burdened property developers,house builders and building supply companies,expensive restaurants,pubs,at least one of the expensive franchised grocery chains,possibly a bank or two and labour intensive unionised businesses.

As for the latter,with the breakdown in social partnership,Irish unions have said they will demand wages greater than inflation even though in our principal export markets,such as the US and Britain,wage increases are less than inflation. Such wage demands would only amplify creative destruction in the export dependant economy of the private sector,promptly putting unionised workers out of work. The private sector unions would quickly find themselves mugged by economic reality.

In the public sector, unions will have to realise that the ATM wage increase machine has broken down,since government deficit spending is limited to 3% by Brussels. The government may even be forced to introduce redundancies for the public sector. Alternatively,it could postpone programmes for needed infrastructure and other essential spending for the long term future in order to fund generous pay increases. However,if it did that,it would be hooted out of office by the media and business for gross neglect of the national interest,while the unions' wage grab would be seen as looting the treasury.

[Cael]

On the other hand, the Irish people could just take back their own land and capital and send the Gombeens packing. The Landlord/Banker Complex have stashed 1200 billion abroad in foreign land and buildings - an act of national treason, aided and abetted by Fianna Fail. How long are the Irish peole going to put up with these blood sucking vampires?

[cyberianpan]

Actually this could be kinda cool ... the most heavily diseased/unionized bodies will end up with horrible strife and crazy outcomes. They'll die , the unions with them. :P

Actually no... what will happen is the public sector will be subsidized by increased taxes.

cYp

[patslatt]

On the other hand, the Irish people could just take back their own land and capital and send the Gombeens packing. The Landlord/Banker Complex have stashed 1200 billion abroad in foreign land and buildings - an act of national treason, aided and abetted by Fianna Fail. How long are the Irish peole going to put up with these blood sucking vampires?

Didn't that Marxist/Leninist confiscation experiment end in the Soviet Union in the 1980s? Communism is now relegated to the museums,except for North Korea's personality cult and the final holdout that isn't a totalarian lunatic asylum,Cuba.

[Catalpa]

Today,Ireland's experience of the credit crunch and weak export markets have started a new bout of creative destruction. Likely candidates for destruction include financially burdened property developers,house builders and building supply companies,expensive restaurants,pubs,at least one of the expensive franchised grocery chains,possibly a bank or two and labour intensive unionised businesses

Sure we'll all shed a tear for them!

Usually the snakes who run these types of outfits slither off sideways leaving their workers to feel the pinch...

[tic tac man]

Actually this could be kinda cool ... the most heavily diseased/unionized bodies will end up with horrible strife and crazy outcomes. They'll die , the unions with them. :P

Actually no... what will happen is the public sector will be subsidized by increased taxes.

cYp

Subsidized? Don't you mean funded?

How else should public services be funded?

[cyberianpan]

Actually this could be kinda cool ... the most heavily diseased/unionized bodies will end up with horrible strife and crazy outcomes. They'll die , the unions with them. :P

Actually no... what will happen is the public sector will be subsidized by increased taxes.

cYp

Subsidized? Don't you mean funded?

How else should public services be funded?

Much of the Public Sector is "make work", many of them would be unemployable in the productive sectors. Problem is that they get to negotiate directly with the government on pay... also they form a large voting block (conflict of interest there for the government). So when push comes to shove the government will get the taxpayers to subsidize an increase for the public sector [size=7]*[/size] , whilst private sector income falls.

cYp

[size=7]* and yes I know the tax rise will be universal but nett money will move to public sector as result[/size]

[Dublinguy]

On the other hand, the Irish people could just take back their own land and capital and send the Gombeens packing. The Landlord/Banker Complex have stashed 1200 billion abroad in foreign land and buildings - an act of national treason, aided and abetted by Fianna Fail. How long are the Irish peole going to put up with these blood sucking vampires?

Where do you get the 1200billion figure from that you keep spouting??? So of course it is illegal for anyone to invest money outside this country therefore every shares bought in a foreign company must be sold etc....you really don't have a f*cking clue at times...

[CookieMonster]

On the other hand, the Irish people could just take back their own land and capital and send the Gombeens packing. The Landlord/Banker Complex have stashed 1200 billion abroad in foreign land and buildings - an act of national treason, aided and abetted by Fianna Fail. How long are the Irish peole going to put up with these blood sucking vampires?

Where do you get the 1200billion figure from that you keep spouting??? So of course it is illegal for anyone to invest money outside this country therefore every shares bought in a foreign company must be sold etc....you really don't have a f*cking clue at times...

Sush, that's €300,000 for every man, woman and child in Ireland, think of how many SUVs we could but! Bring that cash back!

[patslatt]

Today,Ireland's experience of the credit crunch and weak export markets have started a new bout of creative destruction. Likely candidates for destruction include financially burdened property developers,house builders and building supply companies,expensive restaurants,pubs,at least one of the expensive franchised grocery chains,possibly a bank or two and labour intensive unionised businesses

Sure we'll all shed a tear for them!

Usually the snakes who run these types of outfits slither off sideways leaving their workers to feel the pinch...

Many of them are hard working business people who made a single fatal mistake-failure to anticipate the deterioration in economic conditions. Of course,many others made reckless use of credit to build easy fortunes in the good times and now they are sinking under the weight of debt.