The economic outlook
Sir, – The ESRI is warning of the deepest recession we have seen in our lifetime. Government revenues are at an all-time low and spending remains high, which makes it incumbent on our politicians to cease the talking and rapidly form a government in the interest of us all.
Business and social interests should also realise that in a small economy such as ours, with possible massive unemployment looming, that there will be insufficient money available to assist all in their recovery. Many are saying there should be no return to austerity but that might be a false hope based on a warped view of reality. – Yours, etc,
Sir, – In order to have a functioning society there must be a functioning economy. The first phase in opening up our economy from its Covid enforced closedown has begun.
To help maintain the employer and employee relationship, a Covid-19 pandemic unemployment payment is paid to all let go from their jobs. In many cases the sum paid exceeds that which the employee earned when employed.
Employers told Government that in such cases the level of payment was a disincentive to return to work.
Despite this the Government announced that the Covid payment would continue beyond June. This is supported by Opposition parties.
Clearly these politicians have discovered a money tree in Government gardens that the public have not been made aware of, otherwise how can they justify incentivising employees not to return to work?
On the other hand, the Irish Fiscal and Advisory Council advises that “Ireland’s incoming government faces having to push through almost €11 billion of spending cuts and tax increases in the coming years to rein in a yawning budget deficit resulting from coronavirus” (News, May 28th).
Only in Ireland. – Yours, etc,