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January 30, 2012


Hugh Sheehy

Oh dear...more lunacy.

On the 1st point, investments in education and physical infrastructure are long term investments and will have no impact on our extreme short term problem. More spending now just means more debt now. Similarly, many of our struggling or dying domestic companies are residential construction or home/retail related, and those business are NOT going to recover any time soon.

Strike one.

On the 2nd point, while it's slipped in their very quietly, Taft argues that the way to have a "growth friendly fiscal consolidation" is to increase taxes.....which is counter to pretty much every experience in the world. He also ignores the vast consensus that Ireland's tax base is too narrow already, and that Ireland already has some of the highest marginal income tax rates around.

Strike two.

On the 3rd point, Taft invents a whole bunch of makey-uppey sources of investment, up to and including incentivized private pension funds (aren't those the ones being levied) and "public enterprise development"....ignoring that the pension funds need to make a commercial return and our "public enterprises" are already screwing the country's businesses with high costs - plus they're all going to be on the slate since they make up some of the "assets" that Taft wants the govt to spend on his magical investment programme.

Strike three. He's out.

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