By David Mc Williams
Last week provided a very interesting picture about what is actually happening, not just to the Irish economy, but to the broader European economy, and how the various policy responses over the past few years are affecting us all. The picture is not a particularly pretty one because it shows that money is available to big, government-backed companies and enterprises, but not to small, job-creating entities.
The upshot of this Great Recession will be the hollowing-out of the productive marrow of the economy while, at the same time, large, lugubrious entities will probably survive because they have access to precious credit.
The story of Ireland is the tale of two sectors. If you are big and have a stream of income – like a big power company with regular payments which can be used as collateral for a new loan, or a bank with paying customers, or even a state with taxpayers – you will get cash.
If you are small with a good business model but facing stiff competition and precious few assets to mortgage, you can forget about it.
So the good news is that there is plenty of money around; the bad news is it is going to the wrong people – or, at least, not going to the right people.
- Beyond Austerity vs Growth:The Future of the European Political Economy (politicalcogito.wordpress.com)
- The New Ireland Fund (prweb.com)
- Little Dutch Boy (theburningplatform.com)
- IMF: We got effect of austerity wrong (irishleftreview.org)
- Money from immigrants to be a key part of Irish recovery? — Back to the sad 1950s for Irish economy if this keeps up (irishcentral.com)
- Irish government takes wraps off new cloud research centre (itpro.co.uk)
- Ireland’s Demographic Dividend Turns Negative? (thepressnet.com)