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News Link • Economy - International

Ireland: Bailout Down The Drain?

The government is under siege, with protesters attempting to storm Parliament. More-ominously, however, is that The Green Party appears to have pulled out from their government coalition, which would mean that any budgetary reforms that are as a condition of the bailout could fail. That, in turn, would trash the entire process. The EU in turn has said that Ireland is willing to consider "softening" their position on the corporate tax rate. This has trouble written all over it, as much of the "Irish Miracle" has been due to the very low corporate tax rate that dragged a number of corporate headquarters there - including some from the United States. Should changes in tax rates promote corporate flight further serious pressure would be placed on government budgets due to the loss of jobs and thus tax revenue. The ultimate problem with bailouts is that everyone seems to think there's a free lunch. There isn't. You can rob someone to pay someone else, but you can't conjure up money from nowhere. But bailouts inherently wind up taxing the people who got robbed in the first place to pay off the people who made the bad bets and lost money. When it comes to bailing out banks it gets even worse due to the leverage involved - the banksters keep the money, including their salary and bonuses, while the people get robbed not only in the form of losses on their so-called "safe" investments but then again when they are taxed to fund the bailout! There's nothing like getting stuck up at gunpoint and not only losing the hold-up money but then being taxed a second time to pay for the robbery in which you were victimized! This nonsense has to stop and the banks involved must be taken into receivership, reorganized, and the executives involved removed from their positions, tried and jailed. Discussion below (registration required to post)

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