Deflationary Policies Driving us Deeper into Recession
3 Feb 2010
The Government's ill-advised deflationary policies are driving the economy deeper into recession and will translate into even higher unemployment and worse public finances, Congress General Secretary David Begg said today (Feb 3).
Reacting to the release of figures that show unemployment has risen to 12.7 percent, Mr Begg said Ireland's jobless rate was worse than either Iceland or Greece.
"This rise should serve as a dramatic wake up call to Government - it equates with an extra 111,000 jobs lost, since January 2009. Over and over again Congress has said that you cannot deflate your way to recovery and now we have the clear evidence. If Government persists with this perverse strategy, then a jobless rate of 12.7 percent will be the best figure we will see this year as thousands more lose their jobs. The OECD is predicting a figure of 14 percent for 2010 and we fear they may be proved correct.
"Yet even troubled Iceland has kept unemployment to 7 percent and Greece to 10.4 percent. Our rate is among the fastest rising in the EU.
"Alone among developed nations, we have no plan to save or create jobs and no economic stimulus package to boost economic activity. The latest job losses in the retail sector are confirmation that you cannot cut your way out of a recession," Mr Begg concluded.
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