CUT wages by 30% and cut costs by 30%

hammer

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Lets get on with it.

It needs to be done.

It will make us very very competitive.

We will export more and employment will grow.

Government can start with cutting rates, esb charges, waste collection, vhi charges etc...........

Can we do it ? YES WE BLOODY WELL CAN :)
 


FrankSpeaks

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This will also cut tax revenues, how will we pay back the IMF?
 

hammer

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Taxes will increase. Increased activity, increased profits etc.........EXPORTS can save us.

More people in employment.

Cost of 429,000 on the live register is colossal.

Every job lost costs the State €22,000 - it would help reverse this immediately.

Also social welfare would need to be cut 30% - we can do it.
 

Baztard

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Sound in principle if utilities, insurance, food, fuel etc were to drop considerably. However at that % of cut I wouldn't be able to pay my mortgage and I'm sure there are hundreds of thousands like me. What then when an enormous wave of defaults happen, more money to be ploughed into the banks?
 

collina

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Lets get on with it.

It needs to be done.

It will make us very very competitive.

We will export more and employment will grow.

Government can start with cutting rates, esb charges, waste collection, vhi charges etc...........

Can we do it ? YES WE BLOODY WELL CAN :)
Err, in that case VAT would have to be doubled, and Tax Credits quartered to service our national debt.
Competitive? At those levels we'll be competeting with Zimbabwe.
 

lying eyes

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It makes sense to cut incomes by 30%. We are borrowing to pay these high rates which are way in excess of our neighbours. The less well off are paying to keep a lot of the middle class on inflated incomes. With regarde to house loans they should be spread over a longer period to pay-ergo monthly cost reduces.
 

bobbysands81

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Sound in principle if utilities, insurance, food, fuel etc were to drop considerably. However at that % of cut I wouldn't be able to pay my mortgage and I'm sure there are hundreds of thousands like me. What then when an enormous wave of defaults happen, more money to be ploughed into the banks?
I have a thread on here from over a year ago about this very thing.

Announce at a minute from midnight that you're introducing legislation at midnight that ensures that the cost of EVERYTHING falls 30%. Your wages, your mortgage, your utilities, the price of absolutely EVERYTHING falls 30&. It would be the exact same as devaluing our currency and would ensure we are once again competitive. Companies would flock to Ireland to do business.
 

foreignfield80

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Until utilities come down there is little room for manoeuvre here, Constantin Gurdgiev pointed out last month that everything the government has a hand in is going up cost wise so this stymies any balancing act towards competitiveness. We need to take government out of the equation as much as possible, then and only then can costs go down.

True Economics: Economics 14/10/10: Rip-off Ireland is roaring its ugly head
 

hammer

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I have a thread on here from over a year ago about this very thing.

Announce at a minute from midnight that you're introducing legislation at midnight that ensures that the cost of EVERYTHING falls 30%. Your wages, your mortgage, your utilities, the price of absolutely EVERYTHING falls 30&. It would be the exact same as devaluing our currency and would ensure we are once again competitive. Companies would flock to Ireland to do business.
I`m with you.

All mortgages rates should be fixed at 2% for the next 5 years.

We need employment, exports and as much tourism as we can get.
 

atlantic

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Flat Tax the lot @ 20%
 

hammer

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Until utilities come down there is little room for manoeuvre here, Constantin Gurdgiev pointed out last month that everything the government has a hand in is going up cost wise so this stymies any balancing act towards competitiveness. We need to take government out of the equation as much as possible, then and only then can costs go down.

True Economics: Economics 14/10/10: Rip-off Ireland is roaring its ugly head
All done to maintain wages in these State bodies :(

Government are meant to be restructuring public services to reduce cost€..........SUPPOSEDLY
 

collina

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Can't believe the level of innocence on this thread. No suggestion as to how the state services the national debt with a 30% reduction in tax take across the board.
 

Social Conscience

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Can't believe the level of innocence on this thread. No suggestion as to how the state services the national debt with a 30% reduction in tax take across the board.
Innocence is one word, ignorance is another I would use. There is also no mention of mortgage repayments which are directly wage indexed at the time of been approved. This could and would not work in the real world.
 

Expatriot

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I would accept a large pay cut as part of a wider simultaneous program of equal reductions in things like rent and other prices. But having already seen my pay cut twice and prices still rising I will not move first again. We are either repricing all of society or we are not. I cannot be expected to pay more in the supermarket and work for UK wages. Profits are rising, wages are falling. That will not work.

We have a certain model of economic society here that is high cost and low tax. If people like IBEC are serious about changing that I am all ears. But it is more than a change in the costs of one area of society. You cannot expect someone on what is now SW income to fund their health or childcare needs from wages for example. Banks will have to double the term of loans and right off interest also. Rent review contrasts will have to go in the bin, as will NAMA etc. Spending money keeping prices like property up in a non runner. The employers are in denial. You cannot charge twice the price and pay half the wages and half the tax. Make up your mind.

The minimum wage for example is effectively a form of business tax. If we are removing that social support what are we replacing it with? Do you want a German economic model or not?

If you want a USA model forget bord bia, failte, FAS etc. State supports for industry are a non runner is such a model.
 
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FrankSpeaks

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I have a thread on here from over a year ago about this very thing.

Announce at a minute from midnight that you're introducing legislation at midnight that ensures that the cost of EVERYTHING falls 30%. Your wages, your mortgage, your utilities, the price of absolutely EVERYTHING falls 30&. It would be the exact same as devaluing our currency and would ensure we are once again competitive. Companies would flock to Ireland to do business.
You are brain dead if you think this could possibly occur, price of imported items cannot fall 30%, mortgages cannot fall 30% in fact all bank loans will remain at same level of borrowing.

Marks 1/10 and I am being kind, the 1 mark I have given you is for trying.
 

hammer

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It has to happen and it will happen.

Yes there will be a lot of collateral damage. Yes people will need to "restructure" their mortgages but it will happen.

Imported goods will not fall 30% ? They will if nobody wants them :)
 

Aristodemus

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Idiotic suggestion and shows a complete lack of knowledge about economics and pricing.
 


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