Competitiveness (National)

[pjoz]

Ireland shows no interest in being autarkic , thus we want "stuff" from the outside

The ways to get this stuff are money

The ways to get money are
1) Export goods/services at a profit
2) A special case of 1 above: attract foreign companies to set up here

In both cases this requires us to compete globally , indeed Ireland is referred to as a hyper-open economy

The simple metric of such competition is unit cost of product. So say a cap in Poland making 20 widgets a day for a salary of €50 is less competitive than a chap in Ireland making 40 widgets a day for a salary of €90.
I asked for help for the economically illiterate of us out here.Ever hear of the principle of Occums Razor?
There are also stickier human capital factors - such as the existing skill pool of the labour force. Some people (mistakenly) believe education is the primary human capital factor... it ain't , experience is. So for example we've tens of thousands of people employed in back-middle office funds administration jobs in Dublin. They earn a salary above the median (thus cause net cash flow into the country) - and Dublin's pool of experience means it is far more attractive than say Paris or Warsaw.[COLOR="Silver"] (and of course natural capital (geography , natural resources) plays a part)[/COLOR]

Over the past number of years endogenous costs have gotten too high and these are having knock on effects. The two internal drivers of the costs going too high were
1) PS Pay bubble
2) Construction bubble

As result all other costs were inflated to artificial height. The bubbles are burst(ing) so we need an orderly wage contraction, pretty much across the board.

(I'm not a FFer btw)

cYp

I asked for a definition for the economically illerate of us out here.Ever hear of the principle of Occums Razor?

[devnull]

...
As result all other costs were inflated to artificial height. The bubbles are burst(ing) so we need an orderly wage contraction, pretty much across the board.
...

The problem is the massive mortgage debts we've incurred.
Even in the good times, many were overstretched and a significant wage contraction will drive them into insolvency.
We no longer have the option of allowing our banks to declare bankruptcy, so somebody or something in Ireland will have to pay off the mortgage capital they borrowed from abroad - but who and with what money?

[cyberianpan]

The problem is the massive mortgage debts we've incurred.
Even in the good times, many were overstretched and a significant wage contraction will drive them into insolvency.
We no longer have the option of allowing our banks to declare bankruptcy, so somebody or something in Ireland will have to pay off the mortgage capital they borrowed from abroad - but who and with what money?

Indeed



http://www.politics.ie/economy/96960...-defaults.html

cYp

[hammer]

We also need tourism. Getting foreigners to spend their hard earned $ € £ in Ireland. Do away with the travel tax immediately and reduce taxes / charges levied by DAA etc.

Get the tourists in now.

[pjoz]

Indeed



http://www.politics.ie/economy/96960...-defaults.html

cYp

Any chance you might get back to addressing "Competitiveness"?

[hammer]

Maybe change the word "NATIONAL" to "notional"

[pjoz]

"2) A special case of 1 above: attract foreign companies to set up here"
Since you brought up FDI,you might explain its forms and how Ireland compares with other countries in attraching FDI

[cyberianpan]

Any chance you might get back to addressing "Competitiveness"?

I did - and my post was perfectly clear

davehiggz's short version posted above is also adequate and well put

cYp

[pjoz]

I did - and my post was perfectly clear

davehiggz's short version posted above is also adequate and well put

cYp

Your a complete spoofer.davehiggz's hasnt a notion but I thought you might provide some substance.Where exactly have you gathered your economic expertise may I ask? You might also explain FDI for us?

[cyberianpan]

Your a complete spoofer.davehiggz's hasnt a notion but I thought you might provide some substance.Where exactly have you gathered your economic expertise may I ask? You might also explain FDI for us?

If you're going to ask a question... and then fail to address the answers, instead choosing to be impolite... you're really not worth speaking to

You need to learn some manners

cYp