- Opinion
- 25 Nov 09
A systematic campaign of bullying ordinary people has been a feature of the establishment response to Ireland’s financial crisis. But that won’t solve the problem...
So, what do you call someone who picks on the weak and defenceless and on those over whom he has authority? And who blames them for their own punishment? And who pointedly does not confront the strong or rich, that is, those who can pay others to defend their interests? Someone who, if anything, cosies up to the powerful to join in their abuse of those less powerful? Yes, there’s a word for it all right.
Believe me, nothing good ever comes from bullying or bossing or the creation of fear. But that’s where this country is at right now.
This is not to say that tough decisions do not have to be made. There are considerable problems and they have to be addressed and hopefully solved. But quite clearly, those who created a major part of the mess are going to pay far less proportionately than those who had no hand act or part in either the creation of the mess nor the excessive spending that preceded it.
A deeply offensive campaign, based on a systematic abuse of the word ‘we’, has been in train for months now. But most people, and this includes a high proportion of business people too, didn’t earn vast sums of money in the boom time. In that sense, there’s no ‘we’.
Let me put this in perspective.
A style magazine called The Gloss is circulated with the Irish Times every month. Like many of its client base, it’s harmless and good-looking. In the November edition there’s a fashion shoot called ‘Field Work’ with two people (who are so clearly NOT farmers) posing in rural settings.
In one shot the unnamed female model (‘she’) wears a very fetching and very short pair of Prada brown wool shorts and a pair of ‘black rubberised leather waders’ (also by Prada). What Farmer Joe would think of the ensemble is fun to contemplate. It looks interesting, if rather kinky. But the waders themselves, ah yes, the waders will set you back €950 at Brown Thomas.
They are not alone in their Glossy splendour. There’s the Zenith Port Royal El Primero automatic chronograph at €5,687 or the Ballon Bleu de Cartier chronograph, with alligator strap, a mere snip at €17,000…
And so on. All fantastic, I have no doubt, and maybe even worth every cent. But when advocates for the unemployed and lower-paid workers in private and public service say that the wealthy should be seen to pay their way in the present economic crisis, they are referring to those who could contemplate buying these wondrous items for their loved ones, or to wear to a party, at Christmas.
Why? Well, it may surprise some readers of The Gloss, but these items are so far out of the league for most people (and by ‘most people’ I mean those who are now expected to carry the can for the banks and the Government) that the photo-shoot doesn’t even qualify as fantasy.
That’s the problem. In the view of a very large proportion of people, the Government is siding with the high rollers and bankers (ie those who can afford €950 rubberised waders) and forcing the lower paid (including many business people) to carry the can. No wonder there’s rage out there.
It oughtn’t be this way. Everyone can see what’s at issue. But they shouldn’t be beaten like dogs when they didn’t cause the problem. Good leadership, that is, a process involving everyone, would be so much more productive…
But of course it’s easy to throw stones, harder to build walls, and The Hog should also be prepared to make a few suggestions as to how public spending can be funded, so here goes.
• Firstly, the Government has said no more taxes and has shelved the report of the Commission on Taxation. Bad idea. There’s never an easy time to introduce new taxes, and specifically a tax on property, but a time of crisis is also one of opportunity. They should introduce a simple property tax based on floor size immediately, exempting the first 150 square metres, taxing the second 150 sq. m at €5, the third 150 sq. m at €10 and so on upwards. And don’t worry, they’ll tax the value of property in various sales taxes…
• Secondly, nobody said there wouldn’t be new excise duties. Of course, we’ve passed the point of sense in duty on alcohol. As we can see from the huge increase in cross-border trade, the last increase has cost more in lost income than it gained. One estimate is that the Government here lost €430m in lost tax to shopping in Northern Ireland!
But there are substances that would merit a new excise duty. Of these the most obvious is high fructose content syrup (hfcs), widely used as a sweetener in food and drink production. Over the last 200 years the rate of fructose intake has directly paralleled the increasing rate of obesity. This has increased sharply in the last 20 years since the introduction of HFCs. Of itself, and in the effects of obesity, it is currently reckoned that HFCs will cause more liver disease than alcohol. No wonder that American doctors have called for it to be taxed. On public health grounds as well as public finance grounds, we should follow… but call it an excise duty, not a tax, if you want!
• Thirdly, a levy on property insurance, and specifically house contents insurance, would capture a lot of hidden wealth. Also, a levy is not a tax (ha ha).
• Finally, at this juncture most public servants would probably swallow a smallish increase in the pension levy as being the least of many possible evils…