# Money flowing out of the economy in Ireland



## therave (23 Dec 2006)

hi..
just a general question.
there was a piece on the news 2 night ago about people from abroad sending money back home.
i am no economist and would like to know what effect this will (if any) have on the Irish economy 
thanks in advance


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## quinno (24 Dec 2006)

Almost all the US multi-nationals are repartiating profits, so I wouldn't lose too much sleep about it - the goivernment make enough here in VAT and stamp duty......


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## GeneralZod (24 Dec 2006)

I expect the economists will say the economy gets more benefit from the  work done by them than it loses in the proportion of their wages they send home.


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## therave (24 Dec 2006)

interesting answers and i agree on the multinationals answer but surely this money flowing out is money not being spent here and helping boost other countries finances/econmony...please forgive the spellings.. a few pints of beamish earlier..
happy xmas to all


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## sunrock (24 Dec 2006)

Wouldn`t worry about it. Everytime you go out of country on hols or buy an import like many food products e.g. in lidl , you are essentially  sending your money out.....
Anyway we can always borrow more from the germans(via our banks).
The germans as a nation are apparently spendthrift and addicted to saving as they take a long term view....and will eventually own most of ireland...not cheap you`ll agree....
The message is simple  SPEND SPEND SPEND     BEG ,BORROW OR ....
bECAUSE we`ll all be dead within 100 years and sure our huge debt and deficits won`t matter then.
HOPE THAT HELPS.


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## Itchy (26 Dec 2006)

quinno said:


> Almost all the US multi-nationals are repartiating profits


 
Are they? There was a tax amnesty this year as far as i know. How long will it last for?


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## woods (26 Dec 2006)

For every polish person sending 5K a year home, there is an Irish person sending 80K to Bulgaria (or elsewhere) to buy an apartment so maybe you are looking at the wrong problem.


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## therave (26 Dec 2006)

sunrock..i agree on the 100 years but i would like this country to still be owned by Irish people then..

woods.. that'sa  great point too and i suppose Irish people will eventually own a fair share of eastern european property


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## Marie (26 Dec 2006)

The _Bundesbank _owns both mortgaged Irish domestic and investment property AND foreign investments until every last euro of loan-plus-interest (however you cut it!) is paid back!  In comparison 50,000 guest-workers sending home 5K euro to country of origin each year is a tiny drop in the ocean.


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## z107 (26 Dec 2006)

I'm surprised no one has mentioned that a great many 'Irish' companies seem to be foreign. Stroll through a shopping centre and many retail units seem to be from the UK. Okay, so they often have formed an irish company - but where do the profits end up?

It's not just retail outlets either. We also have foreign telecoms companies, banks etc... etc...

This is part of having 'free competition'.


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## Eirmail (27 Dec 2006)

umop3p!sdn said:


> I'm surprised no one has mentioned that a great many 'Irish' companies seem to be foreign. Stroll through a shopping centre and many retail units seem to be from the UK. Okay, so they often have formed an irish company - but where do the profits end up?
> 
> It's not just retail outlets either. We also have foreign telecoms companies, banks etc... etc...
> 
> This is part of having 'free competition'.


 
The profits go to the shareholders who could be anybody.  A lot of people have their pension invested in shares and would unknowingly be benefitting from these profits. Do you have a pension yourself?


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## sunrock (27 Dec 2006)

I remember in the 80s ,we had very high unemployment,school leavers and graduates had no jobs and we were in a long recession. The reason was that apparently we had a big national debt to pay down.
Now we have plenty of money(mostly borrowed) and jobs etc.
However we may have to return to the 80s type economy when we get to pay our present debt back and the credit tap is turned off.
Is this really our fate?


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## Marie (27 Dec 2006)

If in the nature of things value is added by _producing _or _making _or _growing _or _inventing_ (food, useful objects, ideas or techniques to make life easier/safer/longer) and if a situation arises (call it 'Ireland' ) where value appears to be 'added' by simply moving stuff around, slightly differently packaged or described, with  bits added or subtracted, then _where is the value coming from?_.........and the corollary ".......how long can the situation continue".


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## PMU (29 Dec 2006)

therave said:


> hi..
> just a general question.
> there was a piece on the news 2 night ago about people from abroad sending money back home.
> i am no economist and would like to know what effect this will (if any) have on the Irish economy
> thanks in advance



 Unilateral transfers (i.e. immigrants sending money home or foreign aid) are an insignificant component of the nation’s ‘current account’, i.e. the total value of the goods, services and investment income from foreign investments. If you look at your personal current account you will probably find that charitable donations make up a small proportion of it – it’s the same with the nation’s current account.  So they have no significant economic effect.


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