Cowen predicts 10% drop in living standards

Zynks

From: http://www.rte.ie/news/2009/0329/economy.html

Excerpts:

The Taoiseach has predicted a 10% drop in living standards over the next two years...
Minister O'Keefe added that the Government is very anxious to achieve a 'proper balance' in the budget and to treat people equally across the board.

I find it worrying when guys that don't know the price of a pint of milk talk about a drop in living standards. What do they mean with a 10% drop?

• 10% less income after tax?
• 10% less disposable income?
• 10% salary drop?

Any views?

Tech3

I think public services will also be included in this 10% drop in living standards. Services are inept already cant imagine them any worse.

Most families living standards have drop more than 10% as they have lost their jobs.

I would imagine its the amount of money left over when mortgage, bills and food is paid.

noodler

Lets hope its aftertax.

Really would love to see more actualy Economists being consulted at a cabinet level.

jimmycrackcorm

Between fairly widespread tax rises and paycuts, a 10% drop in nett income means a 10% drop in living standards.

Zynks

Zynks wrote: »

From: http://www.rte.ie/news/2009/0329/economy.html

Excerpts:


I find it worrying when guys that don't know the price of a pint of milk talk about a drop in living standards. What do they mean with a 10% drop?

• 10% less income after tax?
• 10% less disposable income?
• 10% salary drop?

Any views?

I'm pretty sure he means a 10% fall in real income per capita. So if you could previously afford 10 Ferraris, now you can only afford 9.

LightningBolt

What colour Ferrari will I have to do without?

I presume he means net after taxes.

Akrasia

why does a statement by our fearless leader need so many presumptions to understand?

Why can't he just say what he means?

Bertie ahern's legacy lives on.

Cowen said drop in living standards, that does not mean drop in income (because that can be offset by falling prices or prudent choices) a fall in living standards means reduction in public services and basic quality of life.

Cowen can claim that Fingleton is suffering a fall in his 'standard of living' if he has to settle for business class travel instead of the first class he is accustomed to, and this would be technically correct, but for him to claim that we all suffer equally because all of us are worse off is a scandalous position when the people at the bottom are losing out on essential services while those at the top are suffering miner inconveniences.

Of course, the richest people in Ireland are suffering no real in living standards other than the fact that may no longer be in the position to indulge in their hobby of gambling vast quantities of other people's money on one way bets that benefit them no matter what the ourcome of the trade.