Posted by
Patrick on Tuesday, March 03, 2009 7:29:14 PM
Here's a stern warning from our Emerald Isle friends. I visited Ireland a little over 14 years ago and it was struggling at that time with over 15% unemployment, which was an actual improvement of much dire figures in the 70's and 80's. Ireland through fiscal responsibility went from being the poorest country in Europe for decades to becoming the richest country. The way they became poor is what we in the U.S. are doing now. The way they got out of depression is what many conservative economists are saying we should be doing.
***
"...We went on a borrowing, spending and taxing spree, and that nearly
drove us under," said Deputy Prime Minister Mary Harney.
"It was
because we nearly went under that we got the courage to change."
And
change Ireland did. In a quite unusual development, the government, the
main trade unions, farmers and industrialists came together and agreed
on a program of fiscal austerity, slashing corporate taxes to 12.5
percent, far below the rest of Europe, moderating wages and prices, and
aggressively courting foreign investment. In 1996, Ireland made college
education basically free, creating an even more educated work force.
*The End of the Rainbow: Thamas L. Friedman June 29, 2005 New York Times
We can follow this example now, or wait until things get real bad, and then do it.