Stimulus isn`t working. Time to try disaster capitalism.

realitykeeper

Those who have read Naomi Klein`s book Disaster Capitalism will know of that author`s cynical opinions of the strategy known as disaster capitalism. This capitalist strategy is a wonderful win win tool for all involved. Simply put it is this: When a disaster happens in a country, there is value to be had so capitalists move to invest and build up the economy again straight away.

The capitalists get a good deal because they invested at bargain prices and the economy gets revived with new industry, employment, economic growth etc - so everyone is a winner.

The problem in Ireland is that the disaster was prevented from happening in the first place by the government`s bailout of the banks and the troika`s bailout of the government. They should let the disaster happen, only then will there be real value in the economy. The economy has to be allowed to hit rock bottom before real investment starts and growth can begin.

The recent house price rises may well tempt those with money to invest now. I believe the economy is setting itself up for a double dip which will be worse than the first dip although the trigger will most likely be external to the Irish economy.

johnnyskeleton

The time to say that we should let te banks fail was 2008, not 2013.

realitykeeper

johnnyskeleton wrote: »

The time to say that we should let te banks fail was 2008, not 2013.

It was said then and every day since.