Economic Prescriptions will send Ireland into a Coma

5 Nov 2009

Congress Economic Advisor Paul Sweeney said today (Nov 5) that continued Government inaction on the Jobs' Crisis and its plans to impose cuts is guaranteed to delay any potential economic recovery.

Speaking at a conference on 'Global Recession: Europe's Way Out', Mr Sweeney said that prescriptions from bodies such as the OECD would also damage Ireland's chances of recovery, as they would send the country into a deep, deflationary spiral.

The conference is organised by Eurofund and runs from 5-6 November, in Dublin Castle.
"The one certain way to end a recession is to protect existing jobs and create new work opportunities and there is ample evidence from around the EU that this works, where governments have successfully intervened in the labour market. So far, our Government attention has focused only on the banks," Mr Sweeney said.

"And the one guaranteed way to exacerbate a recession is impose deep cuts in incomes and services. It is economic madness. The advice from the OECD and our academic economists will not revive the economy, but send it into a prolonged coma.

"Equally, the OECD gets all of its information from Government and official sources - the same elements that drove the economy over a cliff. That surely undermines the credibility of their findings. It should have been issued with a health warning," Mr Sweeney said.

 

ends