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Thread: Official Figures show cost of living rising. How can welfare cuts happen now?

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    Default Official Figures show cost of living rising. How can welfare cuts happen now?

    Today offical figures have shown that the cost of living is rising.

    Inflation is kicking in.

    And yet we dont even have EU interest rate rise kicking in yet.

    How can the government now cut welfare and introduce yet more taxes and cuts to bail out there banker and developer friends?

    No longer can Cowen and the rest of FF claim the cost of living is falling so cuts are inevitable!


    Consumer prices rose by 0.4% in the month of August, marking the first increase since last September.
    The latest figures from the Central Statistics Office show prices on average were 5.9% lower at an annual rate in August, unchanged from the July rate.
    Prices for clothes and footwear rose by 3.4% in August as the traditional summer sales came to an end.

    RTÉ News: Consumer prices up 0.4% in August

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    Politics.ie Newbie Gerard1978's Avatar
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    Well they don't, actually.

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    Did you really just post a quote showing that costs were on average 5.9% LOWER than 12 months ago along side a question as to how welfare rates can justifiably be decreased??

    We've had a sustained period of deflation and now that seems to be ending with a return to inflation. Previous increases in welfare rates mean that the level now (adjusted for inflation) is in "real" terms greater than a year ago - i.e. the welfare payment has greater purchasing power now than it had a year ago. Therefore there is a justifiable (mathematically and economically speaking) argument for reducing the payment.

    It's a different question as to whether it is politically justifiable.

    btw - "taxes and cuts" don't bail out developers or bankers or anyone else. We currently spend massively more than we take in taxes - it's called a current account deficit. We can live with that for a while using borrowing - a bit like someone spending more than they earn - they can use the over-draft and term loan and credit card for a while but at some stage they will have to stop over-spending or earn more and will have to pay back all that debt.

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    Consumer prices rose by 0.4% in the month of August.

    Prices are on the rise. And yet we are still to have the EU raise interest rates.

    Inflation will kick in very soon.

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    Quote Originally Posted by Bi ciuin View Post
    Offical figures show cost of living rising. How can welfare cuts happen now?

    Because the country's bust.

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    I think we should have a price / wage / tax / welfare freeze for 2 years to give everyone some financial stability and security. I think people are really scared now about the tax rises that are being talked about, and not sure how they will be able to pay them.
    Workers will have to seek higher wages to pay for higher taxes and charges, and companies will have no option but to start raising prices to be able to afford wage rises. Inflation will definetly take off again.

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    I don't know where the CSO get their figures ,prices are down all over the shop.The only sector that's increasing costs are anything the government have their snout in.
    A champion of the people emerges with the age-old and appealing promise of "something for nothing" - to be financed through every-increasing taxes. Supply and demand are thrown out of gear - the overhead goes up; the effective use of human energy goes down; the standard of living is lowered because money cannot buy wealth that is not produced.

    WEAVER, HENRY GRADY,

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    Politics.ie Member TradCat's Avatar
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    Workers will have to seek higher wages
    Excellent. Who do I see about that?

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    Quote Originally Posted by Bi ciuin View Post
    Consumer prices rose by 0.4% in the month of August.

    Prices are on the rise. And yet we are still to have the EU raise interest rates.

    Inflation will kick in very soon.
    Heaven preserve me from people who read headlines and don't bother to take in the full article. Prices between August and September, however the annual rate is 5.9% DEFLATION.

    Therefore we could and should cut welfare by 6% and it will leave those on welfare exactly where they were last year. Given that those that are subsidising welfare have all seen a decrease in their living standards, a cut of 10% would be more appropriate.
    Thank you for the six thousand likes.

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    a 6% cut is no cut in real terms. The country no longer has the money to pay them even this reduced amount.

    WE DON'T HAVE THE MONEY!

    I think a cut of between 10% to 15% is on the card and then maybe another 10% for each of the next two years.

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