Sinn Féin's Economic Alternative--analysis by Eoin Ó Broin

[factual]

Eoin Ó Broin has written an excellent piece in An Phoblacht which sets out an alternative economic way forward based on an expanded role for the state.

Sinn Féin have always been sceptical of the unregulated market capitalism model and Sinn Féin now have an opportunity to spell out the alternative way forward for Ireland. Eoin deserves credit for taking the time to sketch what this alternative could look like. I like his ideas.

I have highlighted some important excerpts from his excellent article which can be read in full at the below link.

In short: Eoin makes the same progressive left wing call that I have on these pages: less reliance on foreign capital, more indigenous small business, more state enterprise, a call for better public services, investment in education, investment in research and health, and these things led by the public sector financed by progresive tax and higher overall tax.

As Eoin shows, Sinn Féin are not frightened of being different from the other parties by saying these things, which are very different from the failed establishment consensus.

This left wing economics is the way forward for Sinn Féin. It is the right policy for Ireland and it is right politically: no other party is putting these ideas forward.

At the core of the Celtic Tiger model of economic development, like neo-liberalism globally, was a very simple double-barrel proposition. Economic growth could only be achieved through increased competitiveness. Increased competitiveness could only be achieved through lowering costs, such as wages, taxes and public spending.

The costs of this strategy were two fold — inequality and vulnerability. Reducing costs meant that the benefits of economic growth would be unevenly shared.

...

So what is to be done? What is the alternative to the failed economic policies of Fianna Fáil and the Celtic Tiger?

It is time to change the underlying principles of economic policy and strategy, and advocate an alternative all Ireland economic strategy.

We need to promote high investment; sustainable economic growth; the integration of social and economic policy; and the promotion of social inclusion and economic equality.

Sustainable economic growth means creating jobs that will last, that are environmentally sensitive and socially useful. The vehicle for such growth has to be both state enterprise and the indigenous small and medium enterprise sector. It should focus on high investment in research and development, renewable energy technologies and information and computer technologies.
Sustainable economic growth must also redefine the meaning of competitiveness away from low cost-high profit, to a more rounded definition, based on high quality jobs, products and social and environmental outcomes.

Integrating social and economic policy means providing world class universal public services such as health, education, childcare, public transport and infrastructure. The goals at all times should be social and economic, creating the conditions for sustainable growth while combating poverty, social exclusion and inequality.
A high investment approach will require increased public and private expenditure. Public expenditure will be required for both economic and social objectives. However incentivising private capital to move to sustainable, socially useful forms of investment and job creation must also form part of the overall strategy.

High investment means higher taxes – there is no other way to say it. Countries that pursue such models of economic and social development – such as Finland and Norway – have found a way to successfully combine high growth, high competitiveness, high quality public services and, by EU standards, high rates of taxation, particularly on those individuals and companies who are in a position to pay.

An Phoblacht: Another View BY EOIN Ó BROIN

[Clanrickard]

Ok sounds good but he doesn't flesh these ideas out. What would Eoin do differently in education and health that isn't being done now bar, I suspect, kowtowing to the public service unions? He talks about r&d but while this sounds good the fact remains big multinationals are better at this than anyone else. Also he talks about the small and medium enterprises but how does he propose they are helped? He seems to suggest more taxes. As a business owner I can tell it is the last thing that sector needs.

[Pax]

He talks about r&d but while this sounds good the fact remains big multinationals are better at this than anyone else.

Not with respect to basic research. Remember research is a public good, universities should not become places to subsidise what footloose multinational corporations would do anyway.

Also, higher progressive taxes and a successful economy are not mutually exclusive aims as can be seen by the success of Nordic nations over the longterm.