In Ireland, a Picture of the High Cost of Austerity

[pickledseal]

http://www.nytimes.com/2010/06/29/business/global/29austerity.html

Ireland has slashed its budget, abandoned infrastructure and raised taxes to pay off with the deficit - with the result not only of deeper recession but an actual increase in borrowing. We're hearing a lot about the fate of Greece, not so much Ireland.

"....investors fear that the austerity program, by retarding growth and so far failing to reduce borrowing, will make it harder for Dublin to pay its bills rather than easier."

 

[Tangled up in Blue]

http://www.nytimes.com/2010/06/29/business/global/29austerity.html

Ireland has slashed its budget, abandoned infrastructure and raised taxes to pay off with the deficit - with the result not only of deeper recession but an actual increase in borrowing. We're hearing a lot about the fate of Greece, not so much Ireland.

"....investors fear that the austerity program, by retarding growth and so far failing to reduce borrowing, will make it harder for Dublin to pay its bills rather than easier."

Thanks for the link to an interesting article in the NYT which extends the UK buget debate to Euroland.Quite why Greece and then Ireland and Spain are always mentioned as economies at risk is a mystery to me.I would have thought Japan would have been the best example of what deflationary policies can do to a country trying to get out of a recession.After all Japan's cutbacks have ensured low economic growth or recession since the 90's.

 

[osymandus]

Finaces led by ideology, not by what is required and need.

 

[SARF]

Japans defecit is funded by domestic savers.. ina crisis they just buy more govmnt debt.. Oirlands is funded by foreign investors, and if it wasnt for the fact that they have the backing of the euro, or in reality the bosche, they would have defaulted by now..