Bad view from across the pond
Sir -- Reading Aengus Fanning (Sunday Independent, Dec 19, 2010) makes for depressing reading. And who can blame him? Things do look pretty bad for the Irish economy. The bursting of the bubble and the subsequent collapse of the economy looks really terrible from over here.
It's difficult to see how the imposed austerity programme can help to revive the economy. Although I am certainly not an economist I think the austerity programmes started by Britain, Germany and France are not the way to go. I'm inclined to favour the US approach, which, I'm sure you know, involves keeping taxes low and stimulating the economy by the Federal Reserve. Economists over here expect these measures will boost the US economy and lead to significant spending by US corporations that have been hoarding cash over the past two years. And this should give a boost to the world economy. If this happens, Ireland should benefit by increased American investment providing, of course, the corporation tax rate remains at its present level. It seems to me that this is the best hope for the revival of the Irish economy. Let's hope it works. I pray that it will.