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Official Figures show cost of living rising. How can welfare cuts happen now?


Joined
Sep 10, 2008
Messages
3,584
Today offical figures have shown that the cost of living is rising.

Inflation is kicking in.

And yet we dont even have EU interest rate rise kicking in yet.

How can the government now cut welfare and introduce yet more taxes and cuts to bail out there banker and developer friends?

No longer can Cowen and the rest of FF claim the cost of living is falling so cuts are inevitable!


Consumer prices rose by 0.4% in the month of August, marking the first increase since last September.
The latest figures from the Central Statistics Office show prices on average were 5.9% lower at an annual rate in August, unchanged from the July rate.
Prices for clothes and footwear rose by 3.4% in August as the traditional summer sales came to an end.

RTÉ News: Consumer prices up 0.4% in August
 


adrem

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May 27, 2004
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924
Did you really just post a quote showing that costs were on average 5.9% LOWER than 12 months ago along side a question as to how welfare rates can justifiably be decreased??

We've had a sustained period of deflation and now that seems to be ending with a return to inflation. Previous increases in welfare rates mean that the level now (adjusted for inflation) is in "real" terms greater than a year ago - i.e. the welfare payment has greater purchasing power now than it had a year ago. Therefore there is a justifiable (mathematically and economically speaking) argument for reducing the payment.

It's a different question as to whether it is politically justifiable.

btw - "taxes and cuts" don't bail out developers or bankers or anyone else. We currently spend massively more than we take in taxes - it's called a current account deficit. We can live with that for a while using borrowing - a bit like someone spending more than they earn - they can use the over-draft and term loan and credit card for a while but at some stage they will have to stop over-spending or earn more and will have to pay back all that debt.
 
Joined
Sep 10, 2008
Messages
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Consumer prices rose by 0.4% in the month of August.

Prices are on the rise. And yet we are still to have the EU raise interest rates.

Inflation will kick in very soon.
 

NoPropertyTax

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Feb 1, 2009
Messages
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I think we should have a price / wage / tax / welfare freeze for 2 years to give everyone some financial stability and security. I think people are really scared now about the tax rises that are being talked about, and not sure how they will be able to pay them.
Workers will have to seek higher wages to pay for higher taxes and charges, and companies will have no option but to start raising prices to be able to afford wage rises. Inflation will definetly take off again.
 

atlantic

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Jan 25, 2008
Messages
649
I don't know where the CSO get their figures ,prices are down all over the shop.The only sector that's increasing costs are anything the government have their snout in.
 

Keith-M

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www.allkindsofeverything.ie
Consumer prices rose by 0.4% in the month of August.

Prices are on the rise. And yet we are still to have the EU raise interest rates.

Inflation will kick in very soon.
Heaven preserve me from people who read headlines and don't bother to take in the full article. Prices between August and September, however the annual rate is 5.9% DEFLATION.

Therefore we could and should cut welfare by 6% and it will leave those on welfare exactly where they were last year. Given that those that are subsidising welfare have all seen a decrease in their living standards, a cut of 10% would be more appropriate.
 

toughbutfair

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May 28, 2009
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a 6% cut is no cut in real terms. The country no longer has the money to pay them even this reduced amount.

WE DON'T HAVE THE MONEY!

I think a cut of between 10% to 15% is on the card and then maybe another 10% for each of the next two years.
 

turdsl

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Mar 2, 2008
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26,085
Where is all the money,surely Bertie didnt bring it all with him.whats left in the Dail are doing fine,, If inflation kicks in,wages will have to rise,
 

Tigris Celtica

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Where is all the money,surely Bertie didnt bring it all with him.whats left in the Dail are doing fine,, If inflation kicks in,wages will have to rise,
This country is borrowing 400 million Euros per week at the moment for God's sake ! The country is not only bankrupt but has totally lost competitiveness and credibility. Savage cuts in both public and private sector wages and government spending (including social welfare) are inevitable. Anyone calling for wage rises is living in cloud cuckoo land and as regards social welfare the days of (for example) millions of pounds leaving this country every week to non resident (and in some cases non existent) children of non nationals are numbered....:rolleyes:
 
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toughbutfair

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Where is all the money,surely Bertie didnt bring it all with him.whats left in the Dail are doing fine,, If inflation kicks in,wages will have to rise,
In the UK they had inflation in the late 70s and Maggie solved it by taking money out of the economy which caused great hardship (unemployment increased) and a recession, but once they got it under control they then grew the economy.

Ireland needs to take a step back, make things worse for everybody, get our numbers in control, and then build slowly.

People need to show a bit more metal and stop asking like spoiled kids, you don't need all the stuff you spend your money on, tighten your belts.
 

Kensington

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Jun 14, 2009
Messages
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WE DON'T HAVE THE MONEY!
If we want it, of course we can get it. There is no shortage of paper or ink, as far as i am aware.
 

Cato

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Aug 21, 2005
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If we want it, of course we can get it. There is no shortage of paper or ink, as far as i am aware.
What would be the reaction of the ECB and EU if we just turned on the printing presses? Interesting, I would imagine. Might be worth it just to see the look on the face of the Germans.
 

Cato

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Aug 21, 2005
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20,559
Today offical figures have shown that the cost of living is rising.

Inflation is kicking in.

And yet we dont even have EU interest rate rise kicking in yet.

How can the government now cut welfare and introduce yet more taxes and cuts to bail out there banker and developer friends?

No longer can Cowen and the rest of FF claim the cost of living is falling so cuts are inevitable!
Are you soft in the head? The year-on-year figures are down 5.9%. Food prices are nearly back to 2006 levels.
 

Kensington

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What would be the reaction of the ECB and EU if we just turned on the printing presses?
Well, 400 Euro is being printed and loaned to us every week as it is. We have to pay it back with interest. Why leave them print it when we are perfectly capable of doing it ourselves?
 

Cato

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Well, 400 Euro is being printed and loaned to us every week as it is. We have to pay it back with interest. Why leave them print it when we are perfectly capable of doing it ourselves?
Indeed. I note your signature.
 

Kensington

Active member
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Jun 14, 2009
Messages
149
Indeed. I note your signature.
It seems so bloody obvious. We could sort this out in a week if we wanted, but no one seems interested. Instead, whinging about NAMA continues ... It seems that people like having something to complain about. The worst thing ever would be if it was actually sorted out.
 

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