Policies may provide recovery but not future growth

Danny McCoy states in todays Irish Times that there is a danger of rushed legislation serving the current needs of the banking crises but not serving future problems and growth. The government have introduced direct and sensible polices in broadening the tax base and reducing the cost of doing business. These polices have been mixed with policies undermining the main governmental aim of the smart economy with substantial cuts to education. These cuts in education have only reinforced the opinion the government are only serving current needs and not worrying about future growth.

There has been a reduction domestic demand with cuts in public welfare, minimum wage and public sector wages. According to Paul Sweeney also in the Irish Times today these cuts are more damaging because of the lack of job programmes to counter act the loss of money in the Irish economy. Sweeney suggests there may be a faint possibility of an export led recovery due to the positive early indicators but this export led recovery will leave many parts of Ireland underdeveloped and untapped.

At the end of 2010 the government or the soon to be new government need to reflect on their aims and the creation of sustainable and realistic policies to achieve these aims in order for recovery and continued prosperity afterwards.