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About LinkBacksOne of Fianna Fail's greatest buzz words. For the economically illiterate of us out here coud Fianna Fail please define what it is they mean by the term?
One of Fianna Fail's greatest buzz words. For the economically illiterate of us out here coud Fianna Fail please define what it is they mean by the term?
The Labour Party is a "betrayal to it's principles and objectives"(Pat Rabbitte)
Making Irish businesses competitive so they can compete against businesses in other countries and ultimately bring and keep wealth and jobs here in Ireland.
The question was more aimed at FFers. But have another go at defining it.As usual you just come out with waffle.Define the concept of National Competitiveness for me please davehiggz?
The Labour Party is a "betrayal to it's principles and objectives"(Pat Rabbitte)
NAMA will make sure property will not fall to its proper level that aint competitiveOriginally Posted by davehiggz
Competitive is keeping costs low and revenue high so businesses don't go bust and jobs aren't lost. It's quite simple really
With respect Dave, everything is simple at your age. In a few years time when you've converted Miss Right into Mrs. Higgs and you're trying to make a living, pay a mortgage and put the 2.6 through school, you may detect a few complexities.
Competiveness in FF speak is cutting wages both public & private by about 30% to make us more attractive to FDI.
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.
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
"Yawn , am I alive yet ?"
To FF, competitiveness means lowering the AIW to a level acceptable to attaract FDI while keeping the salaries of governemnt and senior civil servants amongst the highest in the world and using a huge portion of taxes from the workers to keep vested interests well remunerated with State contracts, outsourcing gigs and jobs for the boys.
Their plan got a little skewed in recent years as they were bribed to implement policies that drove house prices up and now they are feeling the pain from their stupidity
We have turned the corner.I commend this Budget to the House. Brian Lenihan, 9 December 2009
I know this is addressed at FFers. However competitiveness is technically the real exchange rate.Since we are locked into a single currency area it cannot be changed except by deflation.
RIRA not in my name-Traitors to Ireland MMcGuinness; People are entitled to cultural & social equality MLMcDonald; We have a length to go understanding unionism GAdams
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