Wow!! Here’s a challenge! Imagine you were the Minister for Finance, looking at this obscene amount of savings, doing nothing but gathering dust in Ireland’s bank vaults. Could you as ‘Proxy’ Minister for Finance suggest a ‘smart’ incentive to get some of the €92 billion in private deposits in Irish banks invested in Irish Business and Irish Jobs.
Here’s an idea! How’s about providing a ‘smart incentive’ to free up some of this pot of cash to get Ireland working again. by, for instance, investing 20% or to a max of €1,000,000 of your savings in a government-managed ‘Youth Employment and Training Fund’, which would be used to place starter-employees in designated Irish Companies or Ventures, like Wind and Wave Energy, Oil Exploration, Mariculture, etc. The investor will receive a guaranteed tax-free yield of say 5% per annum for ten years, after which the capital invested is returned. No dirt tax, no questions asked, just an appeal to the patriotic side of the Irish. Might shake some money out of the trees and out of the banks.
It is time to think outside this ‘austerity’ cloud. While our Industrial sector is recovering and our exports rising, there are billions of Euros languishing in Banks, contributing nothing to the recovering economy.
Wages are falling, businesses are failing and all the while, Banks are not lending! The resulting tightening of credit inevitably leads to a loss of jobs and a restriction in spending by companies and individuals. The crisis will continue to worsen and still this money that could help bring liquidity to the economy, sits at almost zero interest, uselessly, because savers fear investing outside the ‘safe’ option, the banks.
Make it so that the investor, or saver is offered equal safety and returns for investing in the Irish economy, in businesses, jobs and ideas…and we will be on the real road to recovery. Failure to make that happen will haunt us for decades of recession and unemployment…where’s the road-block? Perhaps our poiliticians need to wake up and smell the coffee.
the Irish are a creative nation. Are there any better ideas out there to get Ireland working again? We’d love to hear them.