Comments on: Hire a babysitter and hit town to save the economy http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy?utm_source=rss&utm_medium=rss&utm_campaign=hire-a-babysitter-and-hit-town-to-save-the-economy The website of economist, author and broadcaster, David McWilliams Thu, 09 Feb 2012 02:55:14 +0000 hourly 1 http://wordpress.org/?v=3.2 By: MB http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33852 MB Mon, 12 Nov 2007 01:19:14 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33852 They can print more babysitting coupons until doomsday but if the trust the co-op members hold in the coupons has been irrevocably damaged then printing more coupons won't be enough to save the co-op. Paul Krugman himself admits that in his recent NY Times columns on the US downturn - the Fed cutting interest rates is not the answer to their current malaise if confidence in the market and the dollar as a reserve currency is evaporating. The hangover from a credit-fuelled binge will not be cured by more credit. Japan learned that lesson the hard way in the 1990s with its near-negative interest rates that did nothing to stimulate the economy, largely because people had borrowed too much and overstretched themselves to the tune of decades worth of earning power. Ireland is in a similar situation now in terms of a debt hangover but luckily for Ireland, we're in the eurozone so the value of our babysitting coupons is being maintained elsewhere and the number of members of the co-op is large and diverse enough to hold the coupons' value for a while yet. The high eurozone interest rates are a blessing in disguise for Ireland: exactly what is needed to bring a dose of reality back to Irish life. They can print more babysitting coupons until doomsday but if the trust the co-op members hold in the coupons has been irrevocably damaged then printing more coupons won’t be enough to save the co-op. Paul Krugman himself admits that in his recent NY Times columns on the US downturn – the Fed cutting interest rates is not the answer to their current malaise if confidence in the market and the dollar as a reserve currency is evaporating. The hangover from a credit-fuelled binge will not be cured by more credit. Japan learned that lesson the hard way in the 1990s with its near-negative interest rates that did nothing to stimulate the economy, largely because people had borrowed too much and overstretched themselves to the tune of decades worth of earning power.

Ireland is in a similar situation now in terms of a debt hangover but luckily for Ireland, we’re in the eurozone so the value of our babysitting coupons is being maintained elsewhere and the number of members of the co-op is large and diverse enough to hold the coupons’ value for a while yet. The high eurozone interest rates are a blessing in disguise for Ireland: exactly what is needed to bring a dose of reality back to Irish life.

]]> By: Pay attention to the small print http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33849 Pay attention to the small print Sun, 11 Nov 2007 18:02:53 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33849 For anyone who believes that Britain is tolerant you should think again. All you need do is look at Quotes 416, 428 & 429. This was debated only just last thursday and the results of peoples opinions is overwhelmingly negative, and they have been dealing with Immigration for over 50 years and they are having enough. http://www.bbc.co.uk/blogs/newsnight/2007/11/the_big_immigration_debate.html I found that the phrase “Ethnic Cleansing” quite frequent from their economic growth over the last 50 years! For anyone who believes that Britain is tolerant you should think again.

All you need do is look at Quotes 416, 428 & 429. This was debated only just last thursday and the results of peoples opinions is overwhelmingly negative, and they have been dealing with Immigration for over 50 years and they are having enough.

http://www.bbc.co.uk/blogs/newsnight/2007/11/the_big_immigration_debate.html

I found that the phrase “Ethnic Cleansing” quite frequent from their economic growth over the last 50 years!

]]> By: Deco http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33841 Deco Sat, 10 Nov 2007 21:27:14 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33841 Aidan. The Irish Mind campaign is a complete facade. We need an analysis of the Irish mind, in the hope that we might reduce all the reckless behaviour that we see today in Ireland. The truth is like something out of Phoenix magazine. The Amnesia bit(where financial matters are stored), the day dreaming on the M50 bit, the bit that was lost to binge drinking, the bit that is still reeling from the weekend in Amsterdam, the house prices bit(now dormant), the work bit(dormant most of the time), the honesty bit(also domant most of the time), etc.. When I travel I see America's influence in McDonalds outlets, and I see Ireland's infleunce in Irish pubs. Both the source of obesity problems I suppose. Aidan. The Irish Mind campaign is a complete facade. We need an analysis of the Irish mind, in the hope that we might reduce all the reckless behaviour that we see today in Ireland. The truth is like something out of Phoenix magazine. The Amnesia bit(where financial matters are stored), the day dreaming on the M50 bit, the bit that was lost to binge drinking, the bit that is still reeling from the weekend in Amsterdam, the house prices bit(now dormant), the work bit(dormant most of the time), the honesty bit(also domant most of the time), etc..
When I travel I see America’s influence in McDonalds outlets, and I see Ireland’s infleunce in Irish pubs. Both the source of obesity problems I suppose.

]]> By: Deco http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33840 Deco Sat, 10 Nov 2007 21:17:07 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33840 Leaving the Euro is all well and good, but what if the Irish politicians start running the Irish Central Bank, the same way they have been running all other Irish state bodies.... We are now entering fight for the scraps mode concerning the national state expenditure. The politicians, the public sector unions, various vested interests ranging from the Construction Industry Federation, the Pharmaceutical Union of Ireland, the Chambers of Commerce, RGDATA, the Football Association of Ireland, the state owned broadcaster and on to the Gaelic Players Association, have all stuck their knives into the cake. When all the various bodies of political influence (not just political parties by the way), the Irish private sector taxpayer will be forced to work harder for a more mediocre level of service. The solution is a PAYE taxpayers union, which will go on strike unless the powers that be start treating the public funds system with some respect. Ireland's role in the coupon system, is that of the reckless teenager in the group, who has a low level of commitment, few savings, a decadent lifestyle, and who sometimes goes looking for coupons to sustain a weekend's brain cell destruction. The US is in serious financial trouble, and has been mismanaged economically and societally for over a generation. With the average American having their intellectual development capped by repeat television, a rapidly declining level of intellectual discussion on most issues of national or societal importance, and a combination of retail, religious, and pop culture therapy, most Americans have become intellectually incapable of seeing the problem, let alone addressing it. It is safe to say, that Ireland is in a parallel situation, with listening to 2FM, nursing a hangover, reading the star, and wondering how come house prices are falling in Budapest as well as Blanchardstown. And from what I can see, the Irish are intellectually comatose. And societies with a more prudent, more attentive approach are slowly winning investments, jobs, deals, etc.. without creating the same societal fallout that the Celtic Binge Festival 1995-2007 has caused, as evidenced by soaring rates of gambling addiction, indebtedness, suicide, marriage breakdown, crime, drugs abuse, and drunks rampaging in Accident and Emergency units. The government should take a pay cut, not a pay rise.. Leaving the Euro is all well and good, but what if the Irish politicians start running the Irish Central Bank, the same way they have been running all other Irish state bodies…. We are now entering fight for the scraps mode concerning the national state expenditure. The politicians, the public sector unions, various vested interests ranging from the Construction Industry Federation, the Pharmaceutical Union of Ireland, the Chambers of Commerce, RGDATA, the Football Association of Ireland, the state owned broadcaster and on to the Gaelic Players Association, have all stuck their knives into the cake. When all the various bodies of political influence (not just political parties by the way), the Irish private sector taxpayer will be forced to work harder for a more mediocre level of service.
The solution is a PAYE taxpayers union, which will go on strike unless the powers that be start treating the public funds system with some respect.
Ireland’s role in the coupon system, is that of the reckless teenager in the group, who has a low level of commitment, few savings, a decadent lifestyle, and who sometimes goes looking for coupons to sustain a weekend’s brain cell destruction.
The US is in serious financial trouble, and has been mismanaged economically and societally for over a generation. With the average American having their intellectual development capped by repeat television, a rapidly declining level of intellectual discussion on most issues of national or societal importance, and a combination of retail, religious, and pop culture therapy, most Americans have become intellectually incapable of seeing the problem, let alone addressing it. It is safe to say, that Ireland is in a parallel situation, with listening to 2FM, nursing a hangover, reading the star, and wondering how come house prices are falling in Budapest as well as Blanchardstown. And from what I can see, the Irish are intellectually comatose. And societies with a more prudent, more attentive approach are slowly winning investments, jobs, deals, etc.. without creating the same societal fallout that the Celtic Binge Festival 1995-2007 has caused, as evidenced by soaring rates of gambling addiction, indebtedness, suicide, marriage breakdown, crime, drugs abuse, and drunks rampaging in Accident and Emergency units.
The government should take a pay cut, not a pay rise..

]]> By: Paul http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33830 Paul Sat, 10 Nov 2007 09:12:46 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33830 Forget child-minders study the Austrian school of economics's business cycle if you want to understand why recessions happen. In fact most Austrian analysts have correctly analysed what is happening and what happens next. cut and paste this link into your browser and watch if you want to get the idea. video.goggle.com/videoplay?docid=-2382683217626362775 Forget child-minders study the Austrian school of economics’s business cycle if you want to understand why recessions happen. In fact most Austrian analysts have correctly analysed what is happening and what happens next.

cut and paste this link into your browser and watch if you want to get the idea.

video.goggle.com/videoplay?docid=-2382683217626362775

]]> By: Joe Soap http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33823 Joe Soap Fri, 09 Nov 2007 20:50:13 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33823 Okay, while we're all on the metaphor train, I'll add another thought (sorry David, but you started it.) It's all academic while Ireland is the German whipping boy (or should that be footstool) in Europe. And whie many of us bemoan the departure of the Irish Pound or Punt, I wonder if we're now in a situation where it will either be too little too late, or a case of Ireland being the captain of the ill-fated economic Titanic, the iceberg has struck and the ship is sinking, and nobody thought about the fact that they traded in all the lifeboats for Euros. Frankly, I think that even if we could print money, it would be the height of foolishness and become an unmitigable disaster. Massive inflation would follow suit and despite having encouraged the Murphys, Kellys or even the McWilliams of Ireland to go on a massive spending spree, the fact remains that the property market has suffocted anyone's hopes of loosening their belts and the reality is that they are more likely to tighten their bets further still. And all around is the echoing cry of, "Mayday! Mayday!" Okay, while we’re all on the metaphor train, I’ll add another thought (sorry David, but you started it.)

It’s all academic while Ireland is the German whipping boy (or should that be footstool) in Europe. And whie many of us bemoan the departure of the Irish Pound or Punt, I wonder if we’re now in a situation where it will either be too little too late, or a case of Ireland being the captain of the ill-fated economic Titanic, the iceberg has struck and the ship is sinking, and nobody thought about the fact that they traded in all the lifeboats for Euros.

Frankly, I think that even if we could print money, it would be the height of foolishness and become an unmitigable disaster. Massive inflation would follow suit and despite having encouraged the Murphys, Kellys or even the McWilliams of Ireland to go on a massive spending spree, the fact remains that the property market has suffocted anyone’s hopes of loosening their belts and the reality is that they are more likely to tighten their bets further still.

And all around is the echoing cry of, “Mayday! Mayday!”

]]> By: Stephen http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33821 Stephen Fri, 09 Nov 2007 19:55:46 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33821 I guess you can extend the analogy to account for inflation: Everyone's got loads of coupons, so everyone wants to go out more. There are too few people prepared to stay in. The Kellys are having their 25th wedding aniversery on the same day that their child was awarded their degree, that happpened to coincide with the publication of Mr Kellys first book on economics, and opening of Mrs Kelllys first exhibition at the city's gallery of contemporary art. The Murphys just fancy a pizza to get away from the kids for a couple of hours. The Murphys confer, and agree to accept two coupons to stay in for the evening. With so many coupons in circulation, everyone feels really confident about their ability to get a baby sitter, and still have a couple of coupons in reserve. After a while, it starts to dawn on people that although "I promise to pay the bearer one evening's baby sitting' is on the coupon, it actually takes 2 to get someone to stay in. Solution? Double the number of coupons. After a while, start printing coupons with "200,000 Dollars" on them, then devalue the coupon by replacing them with a new 'Weimar Coupon' to save people from having to wander around with wheel barrows...... I guess you can extend the analogy to account for inflation:
Everyone’s got loads of coupons, so everyone wants to go out more. There are too few people prepared to stay in. The Kellys are having their 25th wedding aniversery on the same day that their child was awarded their degree, that happpened to coincide with the publication of Mr Kellys first book on economics, and opening of Mrs Kelllys first exhibition at the city’s gallery of contemporary art. The Murphys just fancy a pizza to get away from the kids for a couple of hours. The Murphys confer, and agree to accept two coupons to stay in for the evening. With so many coupons in circulation, everyone feels really confident about their ability to get a baby sitter, and still have a couple of coupons in reserve. After a while, it starts to dawn on people that although “I promise to pay the bearer one evening’s baby sitting’ is on the coupon, it actually takes 2 to get someone to stay in. Solution? Double the number of coupons. After a while, start printing coupons with “200,000 Dollars” on them, then devalue the coupon by replacing them with a new ‘Weimar Coupon’ to save people from having to wander around with wheel barrows……

]]> By: john http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33818 john Fri, 09 Nov 2007 19:13:23 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33818 I also agree with Aidans comment about ‘Irish Mind’ campaign. Its stupid nobody will buy into it, I can just picture the 'team' that came up with it probably 30 somethings with only a superficial grasp of the irish identity, probably studied 'morkiting' or 'media studies' in college, probably with little industrial experience or real international experience with irish products. I also agree with Aidans comment about ‘Irish Mind’ campaign. Its stupid nobody will buy into it, I can just picture the ‘team’ that came up with it probably 30 somethings with only a superficial grasp of the irish identity, probably studied ‘morkiting’ or ‘media studies’ in college, probably with little industrial experience or real international experience with irish products.

]]> By: Brian Cowen http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33815 Brian Cowen Fri, 09 Nov 2007 15:58:43 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33815 Good idea david, we are running a big party soon details are here http://www.digoutday.com/ Good idea david, we are running a big party soon

details are here
http://www.digoutday.com/

]]> By: Conor McCabe http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy/comment-page-1#comment-33813 Conor McCabe Fri, 09 Nov 2007 13:25:13 +0000 http://www.davidmcwilliams.ie/2007/11/07/hire-a-babysitter-and-hit-town-to-save-the-economy#comment-33813 When your argument fails, shoot the analogy. Let me quote from David's post: "the answer to a downturn is to print money. Recessions happen because people stop spending cash and they save it instead. Printing money kick-starts spending and, by printing cash, countries can get out of recessions very quickly. In the real world, the coupon issuers are central bankers. This is what is happening in the US at the moment. The Federal Reserve is printing money, cutting interest rates and causing the dollar to plummet. Unfortunately for us, as confidence evaporates here we will not have the ability to print money because our interest rates are set in Germany. Our exchange rate will be rising and our banks, reeling from the bad property debts on their books, will not be keen to lend." There is no analogy in David's call for the EU to physically print more money. His babysitting analogy is there to explain that point. I am not criticising his analogy - I'm criticising what he is actually calling for: a dance with hyperinflation. That is what is completely daft, not his babysitting analogy, but his call for hyperinflation through the issuing of paper money in a vain hope that we'll be able to spend our way out of this one. When your argument fails, shoot the analogy.

Let me quote from David’s post:

“the answer to a downturn is to print money. Recessions happen because people stop spending cash and they save it instead. Printing money kick-starts spending and, by printing cash, countries can get out of recessions very quickly. In the real world, the coupon issuers are central bankers.

This is what is happening in the US at the moment. The Federal Reserve is printing money, cutting interest rates and causing the dollar to plummet. Unfortunately for us, as confidence evaporates here we will not have the ability to print money because our interest rates are set in Germany. Our exchange rate will be rising and our banks, reeling from the bad property debts on their books, will not be keen to lend.”

There is no analogy in David’s call for the EU to physically print more money. His babysitting analogy is there to explain that point. I am not criticising his analogy – I’m criticising what he is actually calling for: a dance with hyperinflation. That is what is completely daft, not his babysitting analogy, but his call for hyperinflation through the issuing of paper money in a vain hope that we’ll be able to spend our way out of this one.

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