Follow the Great Depression lead and cut the face value of every mortgage by 50%

HERE is an idea as to what the Government could do differently, and better, with €60 billion of taxpayers’ money.

The total value of all Irish residential mortgages is about €120bn. For €60bn, the Government could reduce the face value of every residential mortgage in Ireland by 50%. Can you imagine the boost it would give to the economy if people’s mortgage payments were cut in half overnight?

There would be a sudden increase in consumption and we would see an immediate slowing of the unemployment rate.