Bertie was warned about property prices seven years ago
His response seemed to have been something like this
Well! it has taken another seven years for it to fizzle out! Didn’t the politicians really live it up. The government got re-ellected twice. Collected c. €100,000 in taxes from each house sold. Now they are the best paid politicians in the EU. Junior Ministers get more pay than the German Chancellor. And boy! they are going to have the mother of all crashes. What a spectacle that is going to be. One job left to do: hang the doomsayers!
P.S say a few prayers that the worst of the crash won’t happen until after St Patrick’s Day 2008, when we will have the skies darkening again with Paddy the Celtic Tiger Politician flying all round the Globe.
She suggests that wages will rise in some sectors while unemployment rises across the economy, which doesn’t tally. But if you look at whats happened in Japan over the past decade, you have to question the pricing power of Western labour in a globalised economy.
These are the type of statement I would take issue with and any decent economist would as well:
My objections are:
This is presented like a zero sum game. When in fact, we would not expect “lost jobs” anywhere. We would expect more jobs in total, higher income in both developed and developing countries.
Also, it is presented as if there is some immediacy to this. When what one would expect is a structural change that occurs over time. I.e. There may not be many (any) programmng jobs in developed countries in 30-40 years time. This is very different to a situation where you have to live in fear for you employment prospects on a year to year basis.
Also, the apparent claim that public policy has an interventionist role, when the opposite is required.
Finally, this apparent destructive process is presented as some evil that must be countered by public policy. When it needs to be realised that the destructive process in industrial change is the flip side of the creative process that is technological progress and changes in relative comparative advantage (I can talk about that very mportant economic principle if people are intereted) which continue to make us all wealthier and wealthier.