Govt purposely ignoring Unemployment Crisis in attempt to bring about competitiveness

[loaded32]

I read a lot of comentary yesterday that actually started to put some logic to the almost unbelievelable situation of the Govt just ignoring and walking away from the huge unemployment crisis.
Cowen was actually qouted from loast week, by one commentator, saying " we need to understand the need for the ADJUSTMENTS to be made before we can be competitve again"... So in not so many words he was saying that we are going to have to contimue to haemorage jobs so that we can become competitive again as an economy, thus why we havent done anything really and why we are going on a 3 month holiday anyway....

..Personally, I cannot believe or understand this logic/policy and in time will surely just be added to the huge scapheap of failed FF policies...does anyone else beg to differ?

[TradCat]

The only thing worse than the government doing nothing about unemployment is the government doing the wrong thing about unemployment. What do you suggest they do?

[swansandtyphus]

At the moment companies and businesses have no option but sack people or send them on paid leave or put them on a shorter working week.
They will simply go out of business otherwise which would put even more people in the live register.
As it stands already the government has to borrow heavily to pay for the social welfare bill because there are simply not enough tax revenues coming through from businesses and individual taxpayers to pay for the day to day running of government.

Until there is a turn around in the markets the current slide is just going to continue.

When businesses start making profits again and need new employees to deal with the demand from their customers, then we will see a rise in employment again.

But with so many all ready out of work and the cost of living falling, the wages paid to workers before the economic crisis will remain a thing of the past for quite a long time after a recovery.

[HanleyS]

What do you suggest the government does to put these people to work?

They are hoping that at least 150,000 will emigrate or repatriate.

[sandar]

competitivenss is the solution to unemployment, the more competirftive we are the more jobs will be created

[swansandtyphus]

The government cannot solve the unemployment problem.
Those current unemployed will only cease to be so when there is an economic incentive to employ them.
At the moment there is not the money to pay their wages and most importantly there is not the business activity to justify keeping them employed.
They will just have to hang around in Ireland waiting for things to improve or go elsewhere where there is an even bigger pool of unemployed competing in a shrinking job market.

The job of government should be to create the conditions that will stimulate business - keep taxes as low as the possibly can, tackle government expenditure which is way ahead of the government income, try to make government services more efficient and cut out waste, invest in education primarily in the areas of science and technology, research and development.

[sandar]

well tackling waste in the economy and reinvesting the money in productive and job creating ares of the economy would be a start

[loaded32]

competitivenss is the solution to unemployment, the more competirftive we are the more jobs will be created

I completely agree with you that we do need to regain competitiveness in order to regain growth in the Economy.
But does'nt that in itself suggest that the real "Tough Decision" that the Govt has yet to make, needs to take priority ASAP -i.e. The Cull of the Public Service Waste and kwango's !!!
This is where we have really lost our competitiveness and it must start there in order to spill over into the rest of the economy!!
But as we have seen all too often recently, the country is being practically run by Senior Civil Servants and until that is sorted, the Big White Elephant still in the room will not be tackled and we wont regain cometitiveness.

My fear is for the social issues as a knock on of the huge job losses and also where and how will we create half a million jobs again when the economy and global economy hits an up-turn??

[Dios]

My fear is for the social issues as a knock on of the huge job losses and also where and how will we create half a million jobs again when the economy and global economy hits an up-turn??

There are a few suggestions in the sig there...

[cactusflower]

They should NOT put tens of billions into failed banks.