Michael O’Sullivan has an interesting piece in today’s Irish Times, have a read here.
Best bit (for me anyway):
The political response to the jobs crisis is pitched at the micro level – the drawing in and amalgamation of disparate projects. This might help boost shorter-term employment figures, but doesn’t necessarily bolster the potential long-term economic growth rate. Arguably the correct response is a more coherent strategy, one that links economic factors like our banking system and household debt with social issues, as well as incorporating our strategy on Europe.
In Ireland job creation is popularly associated with tax cuts, multinationals and the IDA. But the employment crisis is much less regularly traced to our balance sheet recession, or rather blockages in the banking system and household finances.
A lack of employment growth is the sclerotic and very unfortunate effect of these underlying difficulties, and of important decisions not taken throughout the past year. Should we fail to address them now, there is a high risk of the “Japanisation” of our economy.