You are here

Economy

As we navigate through the global crisis caused by COVID-19, it is clear that tax policy will play a vital role both in the immediate Government response to support people and businesses, and in rebuilding our society and economy once the worst of the health impacts are contained.  This policy briefing explores some options available to the new Government that would increase our overall tax take as a proportion of national income,  broaden our tax base, and deliver a tax policy that would support our social and economic recovery and a new Social Contract

Ireland and much of the rest of the world is facing into a major economic recession as a result of the coronavirus pandemic. The circumstances and causes of this recession are very different from those that caused the recession in 2008/2009, but there are still lessons that can and should be learned. One of those lessons relates to government’s fiscal response. Faced with a recession that will exceed any in living memory, government must act on a scale that exceeds anything implemented during the financial crisis of a decade ago.

The coronavirus pandemic is arguably the greatest crisis the world has faced in living memory. It has implications for several areas of policy, not the least of which is the economy. In the latest episode of our podcast, Social Justice Matters, we talk to Dr. Tom McDonnell, co-Director of the Nevin Economic Research Institute, about the Irish government’s response to COVID-19, what else might be needed to ensure a robust recovery when this pandemic subsides, and the lessons to be learned from this crisis.

If a country is setting social, economic and environmental goals, it is important that taxation policy supports these goals. Ireland needs to have a real debate, not just about the levels of services and infrastructure it wishes to have in the coming decades, but also how these are to be financed. Just Taxation is one of the five key priority areas examined in Social Justice Matters: 2020 guide to a fairer Ireland. This report analyses ‘Just Taxation’ as one of five key priority areas required to build a fairer Ireland in an integrated and sustainable manner. 

Ireland ranks 10th out of 15 comparable EU countries in this year’s Sustainable Progress Index, commissioned by Social Justice Ireland.  The index comprises three dimensions: economy, society and environment.  Ireland is ranked 11th out of the 15 countries on the economy dimension.  On the social index, Ireland is in the middle of the ranking, in 7th place.  Ireland, however, scores last on the environment index which suggests we are facing significant challenges in meeting our environmental targets.  

The Central Statistics Office recently published the Household Finance and Consumption Survey 2018.  This is the only household survey that collects combined information on asset, income and debt levels of Irish households.  It provides us with a valuable data and insight into where wealth and assets are concentrated (both in terms of location and income deciles), and the levels of debt of Irish households. 

On Tuesday, 12th November 2019, President Michael D. Higgins hosted a seminar entitled "Rethinking Economics:  The Role of the State in Fostering a Sustaiable and Inclusive Economy".

In his opening remarks, he cautioned "the prevailing neoliberal model which features markets without regulation, distorted trade and unrestricted globalisation, the priority of the price mechanism and the practice of commodification, speculative investment, and which results in unbridled consumption, yawning inequality and destructive extraction of natural resources is unsustainable from economic, environmental and social standpoints."

The UN Climate Action Summit 2019 begins in New York today.  The purpose of the summit is for countries who signed the Paris Agreement in 2015 to bring concrete, realistic and effective plans to meet 2020 targets and to reduce greenhouse gas emissions by 45 per cent in the next ten years.  What plan does Ireland have to fully transform the economy in line with the sustainable development goals?

Behind the headline jobs numbers, trends in Ireland's labour force participation tell some interesting stories.

The local and European elections threw up a variety of diverse issues many of which seem to be at odds with each other.  Concerns among voters about the impact of climate change and about the future of agriculture and livelihood of farmers may seem incompatible at first glance, but yet they are both very important issues to different sectors of society.  What these elections remind us is that a comprehensive policy framework is required to make progress on these issues and deliver a better future for everyone.

Pages