This is how Fine Gael and Labour left the Irish economy. They held office from November 1982 to March 1987 (ie the longest government of the '80s), yet they blame Haughey for the woes of the economy (Lynch was in charge 77 to 79, haughey Dec 79 to 81, Fitzgerald held power briefly, Haughey's GUBU made way for Fitzgerald's hapless government.)
Here is the sitution in 1987.
http://www.ictu.ie/download/pdf/prog...l_recovery.pdfThe following factors give an indication of the extent of the difficulties
a) a Gross Domestic Product per capita which is only 64 per cent of the EC average
b) a National Debt of over £25 billion which is equivalent to more than one and one-half times of our Gross Naional Product and the servicing
of which consumes annually one-third of Exchequer tax revenue,
(c) an Exchequer borrowing requirsmenr of 10.7 per cent ofGross National
Product in 1987 to finance both current and capital expenditure. This
is among the highest budgetary deficits in the European Community,
d) high nominal and real interest rates which are a barrier to investment,
(e) an unemploymcnt rare of 18.5 per cent of rhe work-force amounting to
242,000 persons. of whom 73,000 are under 25 years of age. This is one
of the highest rates of unemployment in the European Comrnunitv,
f)employment in agriculture which continues to decline steadily at a rate
almost twice the European Community average,
g) net emigration estimated currently at close to 30,000 and which is equivalent
to the natural increase in the population. and
(h) no overall growth in the volume of investment in equipment over the
past 5 years compared with an increase of20 per cent in the European
The wiki short version
A few points arise:Fine Gael wanted to revive the economy by controlling public spending and imposing cutbacks in order to reduce the public budget deficit. The measures proposed by FitzGerald's Minister for Finance, Alan Dukes, were completely unacceptable to the Labour Party which was under enormous pressure from its support base to maintain public services. The two parties in Government found themselves in a stalemate position. They stopped the financial crisis from worsening but could not take the decisive action that would generate economic growth.
1. The deficit for 1983 to 1987 was 8% and over.
After the programme for National Recovery, Haughey's government slashed it to 3%.
2. FG wanted to revive - sounds very weak. Why didn't they?
3. Is slamming on the breaks (particularly to inflation), good enough to justify the mythology that FG is superior to other parties on the economy?
Does anyone want to try defend the Economic Management of FG in the 1980's? (see if they can do without using the name Haughey)
(Here is the current statistics.