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Sunday, May 08, 2011

Food for thought

In an article in the Toronto Star newspaper, economist David Olive looks at the economic train wreck of Ireland. Fueled by low corporate taxes and a fake real estate boom, this Celtic Tiger and darling of neocon supporters, collapsed in five years as companies, despite the low taxes, fled to low wage Poland, and the real estate bubble burst. Olive quotes Irish historian, R.F.Foster,
"It appeared like a miraculous beast materializing in a forest clearing, and economists are still not sure why."
So much for the brilliance of vulgar economists. At the time of the Irish boom, our finance minister, Jim Flaherty, was quoted,
"It (Canada) will look more like Ireland. More dynamic, more attractive to investors, brighter, and more positive, outward-looking."
The budget that failed and led to the present federal election contained large corporate tax cuts. Ireland is now on the hook for $369 billion with a GDP of just $164 billion. Guess whose paying the price for such stupidity! John Ayers

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