Economic recovery - Patience is a necessity

IT’S been a difficult week, especially for anyone who feels that they are not getting a fair crack of the whip as the Government tries to bring some small degree of sanity to the national budget.

Though none of the Government announcements were unexpected the reality of a €100 home tax, huge losses at Nama, arguments about pay ceilings, a massive rise in domestic gas costs, moves to end Sunday bonus payments in some private sectors and the confirmation that property values continue to fall combined to generate an outburst of anti-Government rhetoric.

These announcements also fed our sense of victimhood as did the Government U-turns since the election so maybe it’s time for a small reality check.

The Government is in office for just a few months. They inherited a deep, deep crisis. We spend about €23bn a year more than we earn and cannot function without borrowings. How can that circle be squared without imposing new and escalating taxes or levies? We have taken a small few steps towards restoring stability but we have a long, long way to go. It is far, far too early to pass judgement as it will be some years before we can say if the measures have worked or not. It will be some years too before we can say if we have managed to build the equitable society we all wish for on the ruins of our excesses. Right now patience is more than a virtue, it is a necessity.