Madam, – The editorial of the Wall Street Journal (reproduced in Opinion, June 1st) is an opinion piece for the interests of those who hold financial assets. Their political preference is informing economic policy decisions not because of sound technocratic analysis but because they represent the interests of the powerful. The economic orthodoxy it espouses is based on ideology not economic argument.
Ireland’s fiscal deficit is not the direct result of public spending. It is the direct result of a collapse in an unsustainable form of tax revenue and an unaffordable bank bailout. Two policy options which the Wall Street Journal supported.
Undoubtedly, elected governments are dependent upon the holders of financial assets. But, is this dependency really something to be celebrated? Is 13.7 per cent unemployment the necessary “pain” to ensure those who hold financial assets don’t lose money? Will deep fiscal cuts really support economic recovery? If Ireland does recover from its current malaise it will be the direct result of productive activity by those in the real economy – working people, not glorified gamblers in financial markets. – Yours, etc,