Sunday 19 November 2017

Entrepreneurs need our savings

Sir -- I find it interesting that Aengus Fanning reckons the way to resurrect the "very essence of the creative energy that drives enterprise" is for us all to go shopping. Isn't that what we did from 2003 to 2007? Houses, cars, plasma televisions were all bought on the cheap money hog, and the solution to our economic hangover is fewer savings, more debt and more junk?

Ireland is regaining its competitiveness through lower wages and greater efficiency, the very competitiveness that was eroded in the inflation-fuelled Noughties. We need savings to lend to entrepreneurs who can create jobs, and drive our economy forward. Why do we need inflation? Why are we so scared of deflation? We see deflation in the technology sector every day (think DVD players now versus 10 years ago) yet the likes of Apple and Sony are some of the most valued companies on the planet. Why? Because they produce products people want.

The free market is working and Ireland's economy is growing. We are producing goods other nations want. Let us not extinguish this fragile recovery with fewer savings, more debt, more inflation and more stuff we don't need.

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