AN165 - Two Contrasting Views
21 April 2009

Such is the complexity of the current financial and economic wobbles that even the experts largely disagree on the extent of the downturn, and hardly ever agree on what would constitute the best solution.

Nowhere is this more pointed than in the Irish case, where in recent months we have been assigned that unflattering acronym, P.I.G.S. (Portugal, Italy, Greece and Spain) as one of Europe’s most troubled economies.  Nor have we avoided unflattering comparisons to Iceland.

In the last few days we saw two contrasting and highly interesting views on the Irish economy, one from the New York Times and one from the Financial Times.

First up is the New York Times with an Op-Ed piece titled Erin Go Broke (presumably meant to be a play on that old American/Irish phrase Erin go Bragh).  You would have thought that their Economics Nobel prizewinner Paul Krugman could have done a little better than that, but perhaps he doesn’t do headlines.  Click here to read his take on the Irish situation.

On this side of the Atlantic the Financial Times went with an opinion piece titled Celtic Tiger sharpens its claws for recovery.  This piece was penned by the Chairman of Goldman Sachs International and of BP, and former EU Commissioner, Peter Sutherland.  Click here to read his somewhat different take on the same subject.

There’s no doubting which contribution we hope to be correct.  A few sample blog responses to the Krugman piece included:

Rob in South Caroline says, “Mr Krugman, I think you have an anxiety disorder and you use this column as an outlet for your excessive worrying.”

Manhattan Memories says, “This article is offensive to the Irish and typically pretentious for Krugman.  I can’t believe the ostentatious nature of this persons writing.”

Eric in Wisconsin wants to know, “Why did Obama apologise to the G20 for the US causing this financial meltdown when Europe is even dumber than we are.”

MFF in Frankfurt is very unhappy, “I have to admit to struggling to muster even a tiny bit of pity for the Irish, who pretty much deserve the situation they’re in.  Not only are they in way over their heads, not only did they cheerily and merrily plunge into this whole neo-con ‘freedom’ thing with both feet forward and eyes shut, but worse, for the past 10 years they’ve been swaggering around a la Bush with this self-congratulatory air as if they’ve discovered the secret to success and happiness.”  Ouch.  He goes on and on, finally concluding, “Let’s hope we Americans learn from that.”
Let’s hope indeed.

Belle in Seattle is down to earth, “A perfect headline Paul, my daughter’s name is Erin and she is always complaining about being broke.”

Interesting suff, and we leave the final word to PJ from Texas who says, “The difference between Ireland and America is that America’s debt is dominated in dollars which we can create out of thin air.  Sucks to be our creditor, but as they say, a fool and his money are soon parted.” 
Good man PJ.

April 21st 2009

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