The Cuts Myth

Gross government expenditure in 2009 was €61.1 billion and in 2010 it is budgeted to be €61.9 billion. It takes a good propagandist to convince you that an increased spend of €800 million is a cut! Cuts have been diverted to Social Welfare and FAS. From 2011 to 2014 gross current expenditure will rise from €63.5 billion to €65.7 billion. Ireland has a lower government deficit than Greece but total debt per head is much greater than Greece because of high household borrowing. Irish government budget savings – 6.42% of total government expenditure in 2009 has largely been cancelled by rising spending and the shrinking tax take. This year the projected budget deficit is 11.6% of GDP. We are a long way from the <3% required by Treaty.

We are up the creek without a paddle. Those largely responsible for this must go. Ivan Yates should be brought back even if his arm is twisted out of its socket. I will discuss soon why Ruairi Quinn, Pat Rabbitte, Richard Bruton and George Lee should be at the tiller.

The NCB Purchasing Manager’s Index in January shows high input prices and stock levels -meaning less activity and more unemployment.

CRISIS

So can the propagandists of all parties try to stick to the truth and not mislead the public. Otherwise, the country will be ungovernable. We need social and political solidarity. The Wall Street Journal and Financial Times will fix their sights on Ireland when the Greek music fades. We had better be ready.