Right-Wing Think Tank Praised Ireland's 'Economic Freedom' ... and Then Its Economy Crashed

[marmar]

via AlterNet:



Blog for Our Future / By Terrance Heath

Right-Wing Think Tank Praised Ireland's 'Economic Freedom' ... and Then Its Economy Crashed
Any time the Heritage Foundation holds up any country as an economic example, it should set off alarm bells.

November 26, 2010 |


It hasn't even been a year since the Heritage Foundation placed Ireland among the top ten countries on its Economic Freedom Index. I wasn't intending to write about Ireland at the time, but any time the Heritage Foundation holds up any country as an economic example attention must be paid. It's an invaluable opportunity to learn what not to do, in terms of economic policy.

Even way back then, in April of this year, Ireland's economic crisis was serious enough to make it a real head-scratcher that anyone would place it on top ten list, and hold it as an example of economic success, as the Heritage Foundation's Index is intended to do. Ireland is indeed an example. It's nearly a textbook example of the epic failure of conservative economics to grow an economy and austerity to spark a recovery.

At the time, Heritage glossed over Ireland's economic trouble with a short paragraph.

Despite the crisis, Ireland’s overall levels of economic freedom remain high, sustained by such institutional strengths as strong protection of property rights, a low level of corruption, efficient business regulations, and competitive tax rates. These strengths provide solid foundations on which to build recovery and curb long-term unemployment.

That short paragraph is actually loaded with irony. The very "institutional strengths" that Heritage highlights effectively neutered the "Celtic Tiger" that the Irish economy was suppose to be. Just a year before it was written, Ireland became the first Eurozone country to fall into a recession. A month after Heritage published its index, Ireland's recession evolved into a depression . As in the U.S., Ireland's economic boom was driven by a housing bubble that took the economy down with it when it burst, with shrinking economic output and spiraling unemployment following in its wake. The bursting of that bubble was made even more devastating by the effect of conservative policies on the Irish economy. ...........(more)

The complete piece is at: http://www.alternet.org/economy/148993/right-wing_think_tank_praised_ireland%27s_%27economic_freedom%27_..._and_then_its_economy_crashed/

[burnsei sensei]

1. Capitalism shoots itself right in the goddamn head

and then expects still to be a trusted system.
Sorry.
It's either annihilation or severe re-structuring.
Enjoy your decision-making.

[FreakinDJ]

2. Just another Free Trade Victim

[OHdem10]

3. Just more proof of the failure of Conservative Economic Fundamentalism

[ShockediSay]

4. Why should the general populace bail out private bank owners& creditors

So much for private bank equity and liabilities. When the private banks were profitable, did the government/population share in the profits? Why should the public pay for private bank liabilities?

EU should take the bailout money, recapitalize a new bannk {individual depositors being insured} and let the greedy tax sliding failing bankers, owners and creditors take their justly deserved haircut.