It’s time to get real about wealth and taxes
I spoke to a well-paid professional during the week who was proud of how he voted. He doesn’t seem to get it that his candidate pretty much despises and resents everything that he stands for. People do not always act in their own self-interest, but it will be interesting to observe over time if he comes to regret his decision, particularly if this week’s results are replicated in a general election.
I canvassed for a friend who ran successfully as an Independent in Dublin over the past three months, and the views I heard on the doorstep were sufficient to convince me that this would be no ordinary election, and so it has turned out.
People are concerned and angry about the obvious deterioration in the quality of health and education; about the massive amounts of money being taken out of people’s pockets through penal property taxes and private health insurance; about the withdrawal of medical cards from people who clearly need them; about law and order in the face of serious cutbacks; and about the very onerous tax burden that has been cast upon them since 2008. The imminent water charge is just adding to the anger.
There is no point blaming Fianna Fáil at this stage, because the reality is that having promised much before the general election, the Government came in with a very strong mandate, but effectively continued to implement the programme began by the previous government. The clientelism that characterised the old order is still very much alive and well, or at least that is the perception of many.
The decision to grant free medical cards to all children under six was crazy, and trying to sell it as the first step towards universal healthcare does not stand up. Indeed, the model for universal healthcare is strange and could not possibly work in the real world I fear.
If the results of last week’s elections were to be replicated in a general election, there are concerns about the impact it could have on the Irish economy.
Ireland is a country that is heavily dependent on its external reputation, particularly in the context of foreign direct investment and badly-needed external capital for our banking system.
No sensible investor would choose to invest in a country where there is total hostility to wealth creation, hard work and profits. We should remember that.
Furthermore, how would any individual with a whiff of entrepreneurial endeavour stay in the country, if he or she realised that the political system will want to take most of what they earn from them or raid their deposits or pensions in order to drive the expensive welfare system forward?
Like it or not, the reality is that most people respond to incentives and if those incentives are removed, many talented people will go into hibernation or leave the country altogether.
That is not to suggest that those in power have not made massive mistakes. They certainly have. The decision to roll over and be bullied and forced to take part in a guinea pig experiment by our EU masters was not sensible.
Neither is the notion of continuing to impose fiscal austerity in an economy that is still very vulnerable and fragile. For those who believe that the full €2bn adjustment should happen, I would challenge them to show me exactly where they would plan getting the adjustment from.
Many hard-working people out there are still hurting very badly and have reached their pain threshold. Government needs to wake up to that reality, or risk being sent into oblivion.
