"The pace at which things unravelled was alarming and the speed of deterioration set new records. The volume of retail sales, for example, fell in every month bar two in the period to October by which time it stood 7.3 per cent below its year-earlier level - the largest annual fall since 1984. The Live Register rose in every single month, and by a cumulative 107,000 in the 12 months to November, the biggest annual increase on record"
Such levels of unemployment will create significant economic and social pressure on governments throughout Europe. There will be many within these societies roaring for the simple options. These include
- Changes of government even though there will no transformation from the status quo but simply an adjustment of the aesthetics.
- To ditch the Euro and resurrect the Punt so as to regain the ability devalue their currency and thus mitigate issues in relation to their exports. However, this myopic behavior does not recognize the trouble any country would be creating in relation to their debt financing.
- Voting "No to Lisbon" even though it would sideline our role in the international community and greatly reduce the role which we could play on the global stage. Multilateralism is our only option.
- Falling victims to racism or xenophobia as people become bitter about our deterioating social and economic situation.
Therefore in 2009 we should all have one resolution: that we do not fall victim to stupid short termism and placing all our energy into easy populism as advocated regurally by the Sunday Independent.
Instead, we must be courageous and recognize that long term thinking is required to solve our problems. Such thinking would perhaps lead us to recognize that we can retrieve our economic competitiveness not by ditching the euro but by reducing our cost of living and thus creating downward pressure on wages. Moreover, we would realize that it would be foolish for us to display our discontent by voting no to Lisbon.
No comments:
Post a Comment