tag:blogger.com,1999:blog-8817171247555815363.post1636809324028413453..comments2024-03-26T05:57:44.937+00:00Comments on True Economics: 29/7/2012: Irish CompetitivenessTrueEconomicshttp://www.blogger.com/profile/07350536454228478974noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-8817171247555815363.post-59221483151649291422012-08-21T16:22:04.744+01:002012-08-21T16:22:04.744+01:00Throughout Ireland there is an epidemic of cartels...Throughout Ireland there is an epidemic of cartels which are artificially increasing our cost base. Also many companies are abusing their position of dominance to evict smaller competitors from the market. They are doing this under the guise of a recession whereby small operators going bust is the norm. This all leads to higher prices and a significant loss in competitiveness.<br /><br />The Competition Authority has an abysmal record in regulating competition and like the Financial Regulator who failed to regulate the banks, the Competition Authority, by not doing its job, is having a detrimental impact on the Irish domestic economy. <br /><br />In 2004, Dr. John Fingleton as head of the Competition Authority stated that anticompetitive practices were costing the Irish economy circa €4 billion per annum which equates to approximately €2,400 per household. Now if each household in Ireland had an extra €2,400 to spend, it would certainly give the domestic economy the kick start it needs. Moreover, the reduction in the cost base would make Irish exports more competitive and increase Ireland’s attractiveness as a tourist destination. <br /><br />If one takes Dr. Fingleton’s figure as correct (personally I believe it to be greater), then the lack of competition regulation in the naughties alone has cost the Irish economy at least €40 billion, more than the Anglo bailout! I really think this deserves more research. <br />Pádraic Burke (ISBA)http://www.isba.eu.comnoreply@blogger.comtag:blogger.com,1999:blog-8817171247555815363.post-63714537600973279502012-07-30T10:56:23.263+01:002012-07-30T10:56:23.263+01:00@Constantain
In relation to the wage spiral we wi...@Constantain<br /><br />In relation to the wage spiral we witnessed from c2000 to 2007 what portion of this was property bubble related ? It seems to me that as banks moved away from pricing housing off long run yields to an ability to repay mortgage metric which improved almost daily as interest rates fell,meant that as house prices rose wage rate demand rose in tandem. This factor must have had a monumental influence on wage rate demand coupled with the other beauty namely Benchmarking I & II.<br /><br />Your thoughts.Anonymousnoreply@blogger.com