We are a rich country, as is every country in Europe. That came from an export driven economy which was built from the mid 80'd to the mid 90's. Much of that was based on our location; we just had to learn to trade with our rich neighbours for most of the growth to happen, and from a harvesting other countries taxes.I'm sorry, I don't understand your perspective.
We live, or so we are told. in one of the richest countries in the world. Are you suggesting otherwise? Are we a poor country, or a wealthy country? If we are poor, can you back it up pls with some data, links, references?
If we are a rich country, (there is plenty of data to suggest we are), where did the wealth come from? The magic leprechaun economy?
I agree.
So....you seem awfully concerned about the EU meeting its inflation rate as you keep mentioning this. Do you mind me asking where your interest in inflationary policy has come from?
Yes they could. But only if the oil price results in higher consumer prices.
If the question is "Is increasing wages a better and more equitable tool to stimulate an increase in inflation?" then my answer is yes.I'm not at all concerned about the ECB meeting its inflation target. The ECB, it would appear, very concerned about meeting its inflation target. So much so, they have engaged in a €3trn-€4trn money printing operation.
My interest in inflationary policy comes from the fact that I have a stake in the economy.
What's settled exactly? I am agreeing that wages are inflationary...hardly ground breaking?Hooraay! That's that settled then
Then why keep bring it up? Why not just admit that you just want to see higher wages and the fact that it might help inflation is beside the point?I'm not at all concerned about the ECB meeting its inflation target.
We are a rich country, as is every country in Europe. That came from an export driven economy which was built from the mid 80'd to the mid 90's. Much of that was based on our location; we just had to learn to trade with our rich neighbours for most of the growth to happen, and from a harvesting other countries taxes.
Are you suggesting that our police force and judicial system is vastly better than a country like Botswana?
If the question is "Is increasing wages a better and more equitable tool to stimulate an increase in inflation?" then my answer is yes.
We need to take money out of the economy in Ireland to fund pensions in the future which will be anti inflationary which is in our long term interest to ensure there will be money there when required in the future,Hooraay! That's that settled then
I'm not at all concerned about the ECB meeting its inflation target. The ECB, it would appear, very concerned about meeting its inflation target. So much so, they have engaged in a €3trn-€4trn money printing operation.
My interest in inflationary policy comes from the fact that I have a stake in the economy.
What's settled exactly?
I am agreeing that wages are inflationary...hardly ground breaking?
In the context of general economic theory, wage increases are inflationary.
Then why keep bring it up? Why not just admit that you just want to see higher wages and the fact that it might help inflation is beside the point?
yes, those things are necessary in order to create the environment in which wealth generating economic activity can take place but they are not wealth generating.In order to grow an economy it needs a lot of things. One of them would be political stability, another would be access to education, health services etc. A functioning judiciary supported by adequate law & enforcement is also a plus for attracting investment. Environmental protection measures is another. Policies that support free trade is another. The list is endless, from democratic values and legislature to social supports for children with learning difficulties.
I agree with you on both counts but neither indicate that wage growth is a good thing for the Irish economy or Ireland generally and certainly not outside the wealth generating sector of the economy; internationally traded goods and services, (particularly those provided by Irish companies).Thank you. That is my point.
The other point is, the ECB thinks QE is the tool stimulate inflation. I disagree.
I agree with you on both counts but neither indicate that wage growth is a good thing for the Irish economy or Ireland generally and certainly not outside the wealth generating sector of the economy; internationally traded goods and services, (particularly those provided by Irish companies).
And that's the whole point. If the ECB wants inflation, and wages are inflationary....go figure!
I keep bringing it up because I believe the QE program is ultimately deflationary - that is, my currency, my savings, are being deflated by the very thing that is supposed to stimulate inflation.
Higher wages are not the only thing that cause inflation. Higher evergy prices also lead to higher prices.
If we simply increase wages for everyone, what do you think will happen prices? They will increase and then you'll be back here advocating even higher wages to counteract the effects of inflation!
With respect I don't think that is why you are bringing this up. I think it's because it suits your narrative for higher wages.
As per above, if inflation was running at say 5% I have no doubt you would be calling for even higher wages to counteract the effects of inflation.
Assuming the boffins in the EU calculate that raising wages by 3% would enable inflation to rise to its state target of 2%, how do you think this could be achieved fairly across every sector, every industry, every town/village,city, across the entire EU on an equal basis?
If you take out all of the companies who are hear because of our low tax and all of the people who earn a living Indirectly from the same sources ,
if anything happens to the above over the next 20 years we will be in a sorry state,
It will obviously take time...existing goods will have already used up energy at the lower prices. This is why IMO it would be better to wait until the effects are known before looking at rising wages.I agree. But as you have pointed out, oil has doubled in price recently. Inflation has barely moved over the same period.
Prices will start to increase.
No idea either. I would have thought a socialist would have ideas though....equality n'all...I don't know how this could be achieved fairly across every sector, every industry, every town/village, city, across the EU on an equal basis. Do you?
I agree. But what it has to do with this topic I'm not sure.
In any case, this topic which started in Sept 2016 is somewhat outdated.
Wage increases are being felt across the Irish economy, and also in other parts of the eurozone. Notably Germany.
Inflation is on its way, as desired by ECB (not me!)
What will happen to the QE €trns however? God only knows!
It will obviously take time...existing goods will have already used up energy at the lower prices. This is why IMO it would be better to wait until the effects are known before looking at rising wages.
And if prices start to increase, which direction do you see wages? See where this is going? A spiral..
No idea either. I would have thought a socialist would have ideas though....equality n'all...
What if oil prices fall in that time?
I'm sure the EU has an army of economists and as I am not an economist myself I wouldn't even try. I'm not against wage increases per se, but I don't see increasing wages as a magic bullet either.You are still avoiding the basic point. It is the ECB, not me, that wants 2% inflation.
Can you offer them any advice on how it could be achieved in eurozone economies?
For some lucky people yes, but for most no.Do you not consider that wages can grow in excess of its inflationary impact?
Maybe not, but for socialists it is surely a central tenet?Sorry to disappoint you. I didnt think the concept of equality was exclusive to socialists.
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