Central Bank has been part of the problem not the solution
Last week’s call by the Central Bank for a cut in wages across the economy was a response to the catastrophic economic crisis which was brought about by the banking sector. It was allowed to happen not least because the same Central Bank was asleep on the job.
These people who bear the primary responsibility for what is almost certainly the biggest banking collapse in history relative to the size of the economy have persisted in pursuing a strategy that has made the mess they created worse with each passing day.
Unit labour costs in Ireland have improved by about 19% relative to our main trading partners since the collapse of 2008. Exports continue to perform steadily despite economic stagnation across Europe. This stagnation is the result of similar policies to those which the Central Bank continues to advocate.
The problem with our economy is not that wages or spending is too high. It is that consumer demand continues to fall through the floorboards precisely as a result of the pursuit of this nonsensical approach which reflects an on-going attempt to resolve the problems created by those at the top of society through crucifying people on middle and low incomes.
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