Consiglio consultivo fiscale irlandese: l’aumento della spesa è destinato a “alimentare l’inflazione”, aggiungendo circa 1.000 euro al costo delle spese annuali di una famiglia tipica, avverte l’osservatorio dello Stato
https://www.irishtimes.com/your-money/2024/10/01/budget-2025-bonanza-budget-that-pumps-billions-into-economy-repeats-irelands-past-mistakes-states-watchdog-warns/
di Storyboys
4 Comments
Gift with the left hand and rob with the right hand.
I’m not convinced. Our inflation has been largely caused by global supply chain issues, energy crisis due to Ukraine, pent up demand post-covid and increased financing costs (aka higher interest rates), not insane levels of consumer spending and rising income.
There’s a certain breed of neoclassical economist that panics over any level or government injection of money into the economy by thinking it’s going to turn us into Argentina. Inflation is coming down but supermarket prices etc haven’t been as quick to follow (they never are). The increases to household income caused by this budget are modest when compared to the inflation we’ve seen in recent years. I just don’t think it’s going to cause us all to go spending mad and drive up prices. I’m not an economist though so feel free to tell me why I’m completely wrong.
Can’t wait for Pearse to get up in Dail in a few months and say
“Yous went against the Fiscal council’s advice. Now we have more inflation”
It may have been a Bertie Budget but apart from the Soc Dems and Labour they were all saying it wasn’t enough tax cuts and not enough spending.
We learn nothing