In Ireland it is common for people to go abroad towards the end of college to somewhere warm and work for the summer. J1 visas are easy to get and it’s a great experience. You get a job for the summer, go drinking and do a bit of travelling. I was no different and this summer I sent 3 months in America with a group of my Irish friends. There were seven of us in a 2 bed apartment house, which was a smaller group than most Irish; it was more common to have 10-15 people in a house. It was a fantastic experience and I don’t regret it a bit, but this post is not about my J1, but rather one part of it, my job. Continue reading “Overworked and Constantly Shouted At – My J1 Working Experience”
Economics is a broad and vast field comprising intricate areas that would take years to master. This makes it very hard to summarise or reduce it to a simple point. However, if there was one simple lesson that I wished everyone knew about economics, one easy sentence or sound bite that could explain the essential core to people who know nothing else about economics, it would be: “My spending is your income”. This simple point, properly understood, explains everything you need to know about the important policy issues of the economy. It doesn’t explain everything, but it explains the important parts.
My Spending Is Your Income
One of the surprisingly popular theories as to why the recession occurred is known as the Austrian Business Cycle Theory (ABCT), which argues that not only is the government not the solution to the recession, but in fact, it is also the cause. It claims that the recession was caused by the government artificially lowering the interest rates and distorting the economy leading to a recession. As you can imagine this theory is very popular among libertarians eager for an excuse to absolve the market of blame for the crash. It is promoted by Ron Paul and Peter Schiff who claim to have predicted the Financial Crash (and the next one too). It is also completely wrong and dangerously so. Continue reading “Why The Austrian Business Cycle Theory Is Wrong”
Most economic concepts are pretty dry, but the Impossible Trinity sounds like one of those dilemmas where you are in a burning house and can only save two out of three people. The term refers not to religion (that Trinity is impossible in its own way) but international trade and how governments can only two out of three options, each of which is desirable in its own way. The three options are fixed exchange rates, independent monetary policy and free movement of capital. If they don’t sound that exciting, they are crucial to understanding the crisis with the Euro and what we can do about it. Continue reading “The Impossible Trinity”
There are few things in life as soul-crushing and depressing as being unemployed. In our modern society, people are defined by their work; your job is who you are. Those without a job are therefore excluded from society and feel as though their very identity is in question. Words cannot fully express the overwhelming sense of shame and humiliation that the unemployed feel. Even in times of severe recession they still blame themselves. There is a severe stigma attached to unemployment that makes them outsiders in society. Unemployment is a social curse that robs people of their dignity and self-respect. Continue reading “The Shame Of Unemployment”
One of the most controversial aspects of Ireland’s tax policy is its extremely light taxation of corporations. Corporate tax is only 12.5% and many corporations pay even less than that. Some would even go as far as to call Ireland a tax haven. Others defend it by claiming low taxes attract foreign investment which creates employment and provides tax revenue. Is it dishonest to aid corporations in their avoidance of paying their fair share or are low taxes necessary to keep the economy internationally competitive? Continue reading “Treasure Ireland”
Abolish government regulation of food, what could possibly go wrong? Over the last few weeks the Irish and UK food industry has been rocked by the discovery that many beef products actually contained horse meat. This has raised all such of questions and it is highly likely that other frauds were committed. In this context, it is worth examining why we have government intervention in the economy. It is regularly asserted that the government is only a burden on the private sector and that we would all benefit if the market was left alone. Do consumers need the government to protect them from unscrupulous businesses or can the market regulate itself? Continue reading “Horse Burgers And Food Regulation”