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Thread: Tonight with Vincent Browne - 24/11/2009

  1. #71
    Politics.ie Regular Pabilito's Avatar
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    Quote Originally Posted by Kevin Doyle View Post
    Good link here explaining the deflationary cycle. Irelands reaction is an almost text book example of ehat not to do in an a deflationary period.

    Irish Left Review ILR Podcast: Economist Michael Burke on How the Government is Causing the Crisis to Deepen

    Its interesting that the economist Michael Burke calls the fundamental repsonse to the crash an investment strike from Private sector


    "This collapse in investment is a private sector response to the crisis. From the perspective of potential profitability it is entirely rational, if economically ruinous. It amounts to an investment strike."
    We had an investment rush from the Public Sector today... they spent the day shopping in Newry supporting the UK government Revenue with Irish money generated by the Irish Private Sector... we're all in this together.

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    Quote Originally Posted by Baron von Biffo View Post
    Sorry, it's late, I forgot the normal reaction to a pay cut is to go on a spending spree.
    Well, that is what you are advocating your employer does is it not ? Your employer has sufferred a pay cut, you are advocating they borrow to keep up spending on wages!
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  3. #73
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    Quote Originally Posted by Baron von Biffo View Post
    Come to Portlaoise some day and have a look around. You'll have no trouble parking there are plenty of empty spaces in the car-parks. The biggest employer here is the state and like any other small town, when the biggest employer makes cuts it has an impact down stream.

    Did the pension levy cost jobs in Portlaoise? Of course it did. Did it cost jobs in Mountmellick, Abbeyleix and Durrow? Of course it did. Did it cost jobs in towns all across the country? Of course it did. Maybe your area is unique and there are no businesses in your area taking any part of their income from PS pay, but in the rest of the country when you cut spending power you cut jobs.
    Good luck with trying to get that one through to "our private sector good - public sector bad" attack dogs Baron.

    Most of them seem to live in a some kind of a consequence free vaccum - if you take one action - then voila - all will be great again.

    most do not seem to realise that for every action there is a reaction and so on down the chain - the plain fact of the matter is that there is a private sector investment strike on at the moment and its public sector spending that is keeping many of those private sector workers in their jobs at the moment - Portlaoise is symbolic of most rural towns and cities in Ireland - Kilkenny would be another and Im sure everyone can add more to the list.

    The private sector currently have battened down the hatchs - there haven't been that many wage cuts - its far easier from a management point of view to made a certain percentage redundant and keep the rest of the pay they are already on and content rather than pissing off the whole crew - but the private sector are spending f.all - thus private sector investment in consumer goods is contracting - thus leading to more job cuts and around and around the broken bottle is passed......................

    Not saying that the Public sector should be exempt - but it would be a lot easier if our "betters" and "titans" were seen to be making some sacrifices too instead of fleeing the juristiction with every penny they can get out.

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    Quote Originally Posted by wexfordman View Post
    Well, that is what you are advocating your employer does is it not ? Your employer has sufferred a pay cut, you are advocating they borrow to keep up spending on wages!
    Seems you don't hang on my every word Wexfordman, I've told you several times I'm not a public servant.

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    Quote Originally Posted by Pabilito View Post
    We had an investment rush from the Public Sector today... they spent the day shopping in Newry supporting the UK government Revenue with Irish money generated by the Irish Private Sector... we're all in this together.
    They did? And you know this how? Because the front page of the Indo has a nice picture of a traffic jam? Does it indicate which cars are driven by private or public sector workers or, like you, are they just talking a guess and to hell with the facts?
    Voters don't decide issues, they decide who will decide issues.

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    Quote Originally Posted by Baron von Biffo View Post
    Seems you don't hang on my every word Wexfordman, I've told you several times I'm not a public servant.
    Okay, so lets rephrase it then "Thats what public sector workers are advocating" Cos its really important to be pedantic now is'nt it, rather than adressing the point of the post!!
    Progressive and fair taxation = 2012 Merc e250 elegance purchase price/value €47,910 Road Tax:- €156 2005 vw passat 1.9L diesel price/value €8000, Road Tax :- €582

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    Quote Originally Posted by Pabilito View Post
    We had an investment rush from the Public Sector today... they spent the day shopping in Newry supporting the UK government Revenue with Irish money generated by the Irish Private Sector... we're all in this together.

    There's no evidence to suggest there was a mass fleet of public sector workers who instead of striking on their pickets went shopping in Newry. Parents whose kids had the day off school is a more plausible explanation.

  8. #78
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    Quote Originally Posted by Twin Towers View Post
    No reason whatsover that an outside contractor can't be employed for painting and avoiding all the additional costs of keeping fulltime staff.
    That would cost more as they would have to hired effectively permanently, and their contractor paid a continuous fee on top of all other expenses. Contractors only make sense if the work is temporary, not permanent, and occasional not regular. The size of hospitals and the amount of work taking place means that something somewhere is always being painted, maintained, repaired, etc.

    One of the worst mistakes made in the health service was the move to contract cleaners. Everyone involved, including outsiders who reviewed it, reckoned it was a disastrous mistake. While the cost was cheaper the quality was poor because the nature of the cleaning involved in hospitals is fundamentally different to that in other places. The style of cleaning involved in hospitals is in no way adequate to the needs of a hospital. You have cleaners in a hospital on a Tuesday who were cleaning an office block on Monday and could be cleaning a government office on Wednesday. None have any training for the specific needs of a hospital. Inadequately clean an office building and it remains dirty. Inadequately clean a hospital and infections will spread and patients may die. The number of hospital infections rocketed when in-house professional cleaners who knew what they were doing were replaced by contacted cleaners who didn't. Sir Gerry Robinson when asked what if he could make one change to hospitals in Ireland what would it be, said he would immediately scrap the use of contract cleaners and return to the in-house system. The in-house system was more expensive in terms of cleaning cost, but the cost of hospital bugs that flourished after contract cleaning far outweighed the savings.

    Contract work is not always the best in every environment. Hospitals are particularly sensitive and work done there on the physical environment has to take the unique features of a hospital into account.
    "Irish citizens . . . on ratification of the Treaty could be forced to become Euro soldiers." Sinn Féin claim on Maastricht in 'Democracy or Dependency' p.6. in 1992.

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    Quote Originally Posted by wexfordman View Post
    Okay, so lets rephrase it then "Thats what public sector workers are advocating" Cos its really important to be pedantic now is'nt it, rather than adressing the point of the post!!
    Plunging into a deflationary spiral will cost way more.

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    Quote Originally Posted by Baron von Biffo View Post
    Plunging into a deflationary spiral will cost way more.
    Great, some discussion.

    Can you prove that cutting ps pay is more deflationary than say borrowing less, or perhaps diverting the funds towards infrastructure projects, bb development, etc etc.

    Can you prove that the money not cut from ps pay is better spent in the ps wage bill than say supporting jobs/employment in other sectors ?

    Can you prove that the deflationary impact of cutting ps pay further will be worse than the cost of borrowing over the longer term.


    Can you prove that the tax increases required to maintain ps pay will have a lesser deflationary effect ?

    Can you prove that cutting say 10% of ps wil actually have a significant impact on deflation, seeing as its only 5% in real spending power, and for example could result in say less saving, or less spending on foreign producst (cut the old sky tv sub etc etc)

    5 questions there biffo, dont just answer the easy ones..
    Progressive and fair taxation = 2012 Merc e250 elegance purchase price/value €47,910 Road Tax:- €156 2005 vw passat 1.9L diesel price/value €8000, Road Tax :- €582

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