“For all their squabbles, there is one ing the…”

For all their squabbles, there is one t ing the Coalition and ianna Fail agree on, and that is that the workers are responsible for the crisis of the Irish economy and that they musi pay for it. In this they are backed up by the employers, bankers and economists the so called ‘experts’. How ‘many times have we heard that we = are pricing ourselves out of the market or living beyond our means????

Basically, the argument runs like this Irish workers are paid too much and the increases they are demanding are too high. This puts up the cost of goods produced and makes them uncompetitive. Thus Irish firms can’t sell their products and have to shut down or make workers redundant. At best profits are reduced and there is no money left to invest and create new jobs. In addition, foreign investment is scared anyway. Thus unemployment is blamed on Irish workers. You might not have noticed it but you are paying your self too much!!

Let us examine this argument and nail the lies in it one by one:@ @Liel... irish wages are high. This is nonsense. Wages in Ireland are the lowast in the EEC.

BBLIE2... lrish wages have risen further than those of our competitors.

Let us look at the facts. Irish labour costs Even the experts will exactly the same. have a hard job trying to show this paltry diff- MI M@LIE4... erence has_ increased unemployment by about 50,000 during those years.The assumption underlying the argument is that wages are almost the only costs a firm. pays. In fact wages in manufacturing industry account for around only 15% of costs.Even if wages went up 10%, costs would only go up by 15%.

fe 3...

Firms close down be- cause of too high wages.

The truth again is somewhat different. A survey carried out by the British TUC in 1980 discovered that over half of all the firms which closed down did sc rose from an index of because of lack of 100 in 1975 to 102.7 orders. High wages was in 1982, less than all the least reason. The the other EEC states. situation in Ireland is Lower wages and _ increased profits will lead to more jobs.

Here we get to the real reason why governments and employers want to hold down wages.VWhat they really want is bigger profits.

Evidently, ‘we will have to tighten our belts’ does not apply to the bosses and the banks.

However, is it true that lower wages will mean more jobs? -Experience: tells us NO!

Once multinationals and even native firms gain higher profits they don’t re-invest in Ireland. Millions flow abroad every year without being taxed and are never seen again.

This is where the heart of the problem lies. Ireland is ‘one of the most profitable locations in the world. Yet it doesn’t gain any benefit because it is a country dominated by imperial“ism. Multinationals aren’t interested in creat-: in jobs in Ireland; the main reason for firms closing down is lack of orders.This_ is just part of the recession that has hit” every capitalist country but Ireland suffers twice as much because of its domination by imperialism. Native firms are smaller and weaker and foreign multinationals close their branch factories down sooner than their bosses in the imperialist nation.

NE