Category Archives: Articles for SIPTU’s Liberty

Ireland is not full

Ireland is not full. We don’t have an immigration problem. We have a capacity problem. And that’s because of a decade of enforced austerity and low public investment after our financial crisis. We have chronic housing shortages, critical infrastructure gaps and public services near breaking point.

Rightly, Ireland has acted in solidarity with Ukrainians fleeing war. In addition, the number of people seeking asylum in Ireland hit a record in 2022. Arrivals from both sources have slowed in 2023, but together amount to a 2% jump in our population in just 18 months. Yes, this exacerbates our capacity problem. But, Ireland is not full. We have one of the lowest population densities in Europe.

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Argentina Poised to Lurch to the Right

Argentina’s World Cup triumph in December 2022 prompted a predictable outpouring of national joy. But, the feeling was to be short-lived as the country reels from a devastating drought that is exacerbating one of the country’s periodic economic crises.

The inflation rate is over 100%. The economy is flatlining. More than a third of the country is in poverty. Talks are ongoing to restructure the country’s $44bn IMF bailout. Meanwhile, approval of the Peronist government is barely in double digits.

Against this backdrop, Argentina prepares to go to the polls. On August 13th, all potential candidates will participate in a single, national primary election that will winnow down the field to a single standard-bearer for each party or electoral coalition. The first round of the Presidential election proper will take place on October 22nd. Current President, Alberto Fernández, announced earlier this year that he would not seek re-election.

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Independent Trade Unions Enjoying New Lease of Life in Mexico

Donald Trump was no friend of the labour movement, nor of Mexico. But, ironically, his saber-rattling around trade policy led to the renegotiation of NAFTA and – following pressure from the US’ AFL-CIO during those negotiations – a landmark labour reform in Mexico which saw significant strengthening of independent trade unions there. This means more leverage for Mexican workers campaigning for better pay and conditions as well as reduced risk of US-based employers shifting – or threatening to shift – production to Mexico to take advantage of lower wages and labour standards.

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Chronicle of a Crisis Foretold

Bolivia may still be one of the poorest countries in the Western hemisphere but, particularly since Evo Morales became the country’s first indigenous President in 2006, his Movement for Socialism (MAS) has overseen immense improvements in living standards. Though still significant, poverty and inequality have massively reduced. Bolivia has had the lowest inflation rate in the region, so it hasn’t borne the full brunt of the cost-of-living crisis of the past two years. In fact, managing the economy has been seen as one of the government’s strengths.

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Brazil is Back

The election of Luiz Inácio ‘Lula’ da Silva made for a Red October, and a political comeback for the ages. But, it was a close-run thing, while the second go on the merry-go-round will be far more challenging than the first.

At the fourth time of asking, former trade-union leader Lula was first elected President of Brazil in 2002, and reelected in 2006. Despite initial fears that he may display some of the authoritarian tendencies of Venezuela’s Hugo Chavez, Lula in fact governed successfully from the progressive left, sharing the fruits of economic growth more broadly and lifting 20m Brazilians out of poverty while reducing inflation and government debt. One of his flagship policies, since copied elsewhere, was the conditional cash transfer known as Bolsa Família. This welfare programme channeled cash to poor families on the condition that their children were vaccinated and attended school.

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Rising Interest Rates Risk Italy Being the Epicentre of 2023 Eurozone Crisis

There was consternation in Italy recently with The Economist’s characterisation of the British Tory Ominshambles as ‘Br-italy’, because it played into outdated stereotypes. And, with good reason.

Italy has had 68 governments since World War 2, run up massive public debts and regularly resorted to currency devaluation rather than harder-to-do policy reform to maintain competitiveness. Relatively short-lived governments are still the norm, with Giorgia Meloni having recently become the 7th PM in ten years at the head of a Brothers of Italy party that can trace an authentic neo-fascist lineage.

Fiscal profligacy and currency devaluation, however, were very much 20th century phenomena. Italy has been able to respond appropriately with fiscal stimulus to both the global financial crisis and the Covid-19 pandemic, in line with peer countries. But, Eurozone membership has greatly constrained Italian policymakers since the mid-1990s.

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Further Government Action Needed to Tackle Economic Impact of Covid-19

Everything has changed, changed utterly.

Our new normal would have been unthinkable just a few short weeks ago. Social distancing measures are absolutely necessary to slow the spread of Covid-19. They help us buy time and avoid our creaking health service becoming more swamped than would otherwise be the case. Still, medical practitioners face difficult decisions, between life and death, who to treat first, to whom should scarce ventilators be assigned. These are unenviable choices to have to make.

It should go without saying that our frontline medical staff deserve our unquestioning support and cooperation in the weeks and months ahead. Right now, money should be no object to ensuring they have all the resources they need to avoid unnecessary deaths. To be fair, the caretaker government is taking resolute action. Of course, our health system should not be left short of resources at the best of times, but that is an important debate for another day. Even the best, most egalitarian health services in the world are now bracing for the worst.

A global recession is likely inevitable. As a trade-dependent economy, Ireland will be hit hard. But, the first to be affected are those service sectors that depend on social interaction: bars, restaurants, cinemas, airlines and the like. More than 100,000 jobs have already been lost, with up to half a million potentially at risk in the coming months. This crisis is different to 2008, but in some ways the economic effects could feel somewhat similar. And recessions and poverty are killers too. Continue reading

New politics is old hat

Making virtue of necessity is a tried and trusted political tactic. With neither Fine Gael nor Fianna Fáil able to command a sustainable majority after the 2016 election, and unwilling to give up the narcissism of small differences by forming a grand coalition, we were left with a ‘confidence and supply’ arrangement that pleased nobody. Independents were brought into the government fold while the soldiers of destiny reserved the right to play hurlers on the ditch without pulling the plug.

The necessity of this ‘temporary little arrangement’ was wrapped up in the virtuous rhetoric of so-called ‘new politics’. Political reforms were to open up the legislative process, making it more deliberative and less confrontational. Due consideration would be given to opposition proposals and private members’ bills. The Committee system was to be streamlined and treated more seriously.

‘New politics’ was treated in some quarters as a breath of fresh air in 2016. Some thought it might last until 2017 or 2018 at a push. One thing that wasn’t expected was that the UK would vote to leave the European Union later in 2016. The political psychodrama across the Irish Sea has since kept audiences agog, and kept the Dáil in suspended animation. The Taoiseach dare not face the electorate with Brexit unresolved. The ‘temporary little arrangement’ has lasted longer than many would have expected, providing stability in uncertain times.

But, is this a good thing? Continue reading

Counting the Cost of Brexit

At the time of writing, just as the UK Supreme Court unanimously ruled that Prime Minister Johnson’s prorogation of parliament was unlawful, the range of potential Brexit outcomes remains shockingly wide. More than three years have passed since the UK people voted narrowly to exit the European Union, yet it is still possible that there will be a no-deal Brexit at Halloween, that there will be no Brexit at all, or that sooner or later they will leave with a deal.

Yogi Berra is known not only for his baseball exploits for the New York Yankees around the middle of the 20th century, but also for his way with words. He famously asserted that “it’s tough to make predictions, especially about the future.” At the best of times, economists often convey a false sense of certainty about their own forecasts. What economists do is make certain assumptions, such as how they expect a “shock” will impact on variables like trade, investment and consumer behavior. At times like these, facing an unprecedented event such as Brexit, even making accurate short-term forecasts becomes next to impossible. Continue reading

Measuring what Matters

You can’t eat Gross Domestic Product (GDP), yet it is the indicator that economists pay closest attention to.

GDP gained currency during WWII as a way of keeping track of war production, and has since remained the dominant measure of economic output. More than that, it has become a byword for living standards.

Looking across countries, economic output per person, or per capita, adjusted for price differences is still a reasonable proxy for average material living standards. At least up to a point. It is not necessarily a good indicator of individual happiness, or of societal wellbeing, however.

The main problem isn’t with measuring GDP per se, but that maximizing it has become the over-riding target for economic policymakers. They have lost sight of the fact that increasing economic output should be a means to an end, not an end in itself. The over-riding priority should be to maximize the welfare and happiness of the greatest number or people while ensuring everyone has a basic, decent standard of living. Unfortunately, there is no consensus around how these should be measured.

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