Invest and do no harm
Posted on June 27, 2012 by Tom Healy
Following the release of our second Quarterly Economic Observer today there has been coverage of the report in the print and other media. A key issue to be considered is the impact of not changing the current course of economic policy. No change in direction will see unemployment in excess of 10% in 2017 according to the latest IMF projections, a smaller State and a lower level of public service spending (30% in 2017 not including debt service costs) - the lowest of any EU27 state according to IMF projections and in all likelihood greater inequality. The cost of this is difficult to quantify and there are many uncertainties with any projection into the future. However, the benefits of investing in people, infrastructure, communities and protecting the income of the low-paid and the economically vulnerable must be assessed and given priority. It makes good macro-economic and budgetary sense. Comments, discussion, queries on this Report are most welcome on this blog.