Burning Our Future To Fuel The Past

Well the optimism of Tuesday has been smartly kneed in the crotch. I will still apply for the course, but any hope of actually being able to do it without starving to death is rapidly receding. There is basically no money now to help people do postgraduate studies. No wait, I tell a lie. The exception is postgraduate-level teacher training. There is no funding to employ teachers of course, but you can still train to be one.

Since the last budget there will be no further grants or other maintenance aid for students continuing to the fourth level. So much for the knowledge-based economy. Austerity trumps that, like it’s trumped every other strategy and aspiration.

And this is just a taster. The government plans something like a further eight percent in cuts next year to meet borrowing reduction plans. Where will this come from? It’s hard to say. We’re already cutting deeply into the things, like education, that led to our economic growth in the past. Sure, I can get by without investment in myself to improve my earning opportunities. But the country as a whole?

We’re burning the future to fuel the past. Whatever cuts we make further affect our opportunities to recover and so reduce our ability to pay off our debts. They’re essentially counter-productive, and it goes without saying that they will also cause real harm to real people as health, welfare, pensions and services come under increasing pressure. The more we cut, the worse lives become, and the longer it’s going to stay that way.

But note that I’m talking about the government’s current plan. This is without taking the Fiscal Compact into account. If we pass that, we will be committing ourselves to repay debts at a significantly faster pace than the government apparently thinks possible right now. They accuse the No campaign of offering no alternative strategy, without even beginning to attempt to explain how we can meet the criteria the Fiscal Compact sets for us.

The truth is, we simple cannot meet those criteria. How much more will we have to cut back compared to current reductions? Nearly twice as much. Who believes for a moment that’s possible humanely, never mind politically?

But wait, what’s politically possible doesn’t matter any more! Because the treaty provides that if we are too merciful on our own population and fail to cut deeply enough, the Eurozone will be able to impose budgets on us – essentially turning our democracy into a puppet administration. And as this outcome seems pretty much inevitable, voting for the treaty really is voting to wind up Ireland as a meaningful state. You think a foreign administration we can never vote out can’t do a worse job than our own shower? I invite you to consider how that worked out in the Great Famine.

I do believe that we’ll need some sort of budget management agreement if – an increasingly big if – we continue to have a common currency. But the one we’re being asked to swallow puts the interests of the larger Eurozone economies so completely before our own that it amounts to tyranny. For their sake we are being asked to take actions that run absolutely counter to our most urgent needs.

This is an anti-overspending compact just when we desperately need to spend. It exists because other countries overspent in the past, not us. Compared to the European average we underspent. Compared to Germany and France, we were choirboys. Our problem was that we took too little tax from far too few people, creating a tax base that was utterly, idiotically dependent on the boom. We need more tax income, desperately. Slowing down the economy instead – and so further reducing the tax base – is fighting fire with ostriches. It’s insanity.

But the larger countries do not give a damn because they have their own problems. All the really care about is that the Euro doesn’t fall in value, because basically that’s what their wealth is in. There are no two ways about this. We are being asked to sacrifice ourselves – really, do something quite suicidal –  in order to be a bulwark for the Euro. Our reward for this? The right to apply for loans we may or may not need, at rates that may or may not be better than we can get elsewhere, from a fund that we have no guarantee is ever going to exist.

Are we fucking mad?

Related articles

• Austerity, That’s What We Need More Of (i.doubt.it)
• The Coming Revolt Against Austerity (wallstreetpit.com)
• Austerity.ie website launched… (cedarlounge.wordpress.com)