Charlie haugheys Ghost? - the current level of spending is beyond its natural means

aidanodr

SO - should we be worried OR nothing to see here folks???

"Government spending has kept pace with the rise in tax revenues and stood at an eye-watering €107.3 billion last year – leaving the exchequer with a modest surplus of €1.2 billion.

"But it’s well known in government and the Department of Finance that this level of corporate tax income will not last indefinitely and the revenue stream will fall back to a more normal rate.

And when that day comes, the state will be forced to tighten its own belt - as the current level of spending is beyond its natural means."

https://www.businesspost.ie/analysis-opinion/analysis-even-with-record-tax-revenues-the-irish-state-may-be-spending-beyond-its-means/?utm_source=twitter&utm_medium=social&utm_campaign=qf

Hawkeye123

Yes but what has it to do with the late great CJH?

aidanodr

https://www.boards.ie/discussion/comment/121697435#Comment_121697435

@Hawkeye123 With Video and sound let the late great CJH explain it to you :D

https://www.youtube.com/watch?v=GOgZqB4ztJI

con747

https://www.boards.ie/discussion/comment/121697435#Comment_121697435

Maybe it has a suggestion of his lovely television address telling us all we are spending well above our means whilst lording it up on tax payers money and god know's what other incomes not officially allowed. Tighten up your belts while I have lorries full of caviar and champagne delivered to my private island.

tabby aspreme

Did anyone mention "soft landing" yet

aidanodr

https://www.boards.ie/discussion/comment/121697491#Comment_121697491

Indeed it was @con747 .. In post #3 above is that video

con747

https://www.boards.ie/discussion/comment/121697659#Comment_121697659

I got side tracked whilst posting so only noticed your post after I got to finally post mine! I think we all know some people were loose with the truth in politics to suit themselves though.

Hawkeye123

https://www.boards.ie/discussion/comment/121697464#Comment_121697464

I doubt anyone would argue the fact that we are a jealous people and this idea of someone rising above their station is abhorrent to a lot of people. Only the English landlords should live in grand manor houses and our place is among the pigs. The late great CJH led by example and he was right of course in what he was saying. We were living beyond our means although not nearly as much as we are today.

The austerity of the Haughy government in the late 80s was a gift. It gave us the celtic tiger economy. A little gratitude would suit you better.

Hawkeye123

https://www.boards.ie/discussion/comment/121697586#Comment_121697586

Well as you know, the powers are forecasting lower inflation and lower interest rates. They are basically sacrificing long term bonds for the sake of short term bonds and the stock market. June was mentioned as the month the might lower interest rates. They desperately want inflation to fall so they can justify a cut but a lot of stuff is working against inflation. The credit expansion, the Red Sea crisis, the regulations on farming and so on. But, even if inflation were to fall, would an interest rate cut cause a sell off of the euro? Probably, and that would cause a near term spike in inflation.

I think central bankers know cutting interest rates would be a mistake. But they want to offer hope to people who borrowed too much. Eventually, they will have to choose. They will probably choose to cut as they may feel they have no alternative. Then inflation will become a serious issue.

timmyntc

The state has no interest in reducing its spending. Not a single government department tries to spend less - it is inevitable that spending will continue to rise to fill the available budget.

Only when we see a sharp fall in revenue will the state spending budget be reined in somewhat - problem then is, what gets prioritised? Populism always wins out and we will end up with cuts to infrastructure, water, education etc rather than see wages or welfare cut. God forbid the dept of integration loses some of its ballooning budget of billions

ELM327

https://www.boards.ie/discussion/comment/121699483#Comment_121699483

we've already seen that the preferences of successive governments here has been to increase debt rather than do what they should and reduce spending