Better Late Than Never

25 July, 2009

Salary The Irish Times reports on remarks made by Minister of State for Labour Affairs, Dara Calleary that suggest a willingness to let firms plead ‘inability to pay’ the minimum wage. Minister for Finance, Brian Lenihan also indicated that such measures may be considered if it becomes clear that it is a barrier to job creation.

Back in April, some arguments for reducing the minimum wage in Ireland were considered here. The debate has taken on new urgency in light of budgetary conditions, as the state is desperate to keep people in jobs and off the dole. Although long overdue, their proposal is far from perfect.

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Paying People to Work

21 April, 2009

UnemploymentThere has long been argument over whether the European Union constitutes what economists call an “optimal currency area”. The worsening economic conditions in the state are bringing the arguments against into sharp focus. Ireland has for long suffered wage inflation higher than the rest of the current monetary union. This increased the purchasing power of Irish consumers, and intially brought prosperity. Meanwhile, the country’s competitiveness was suffering as it became a more expensive place to do business. This is the major source of Ireland’s current employment crisis.

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