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July 22, 2004

Farewell to economic liberalism?

I must concur with Chris. It doesn't augur well for our future prosperity that Ireland's most economically liberal Finance minister can get effectively sacked for being "too right wing". It may well be the case that Charlie McCreevey's move to Brussels will be seen as the beginning of the end of a period of unparalleled prosperity and growth. Economic liberalism doesn't begin and end with one man but it is hard to ever see someone as liberal as he appointed to this job again. It is often the case that people don't know, as the saying goes, what is good for them. I wouldn't be surprised if, in the future, after a period of prosperity-wrecking Green posturing, Labour spending, FF or FG incompetence or SF muddle, people look back fondly on the McCreevey era.

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Frank, of course the ironic thing is that, despite the media slant, Charlie McCreevy is not that much of a right wing idealogue (in economic matters) at all. Everything is relative and of course in Irish political terms, he stands to the right of most of his own party and almost all of the opposition parties and TDs.

Dan McLaughlin illustrates this point well in his article on p5 of the Business section of today's Irish Times. He knocks a few of those well worn canards about the level of Irish public spending on the head.

Like you, I dread what is coming in the short term i.e. vintage Fianna Fail populism through wasteful splurging of taxpayers money into the various departmental black holes, with Health being the worst. McCreevy has more than doubled the spending on health during his tenure and the system has disimproved (shame on him). This government has chickened out of the reform suggested in reports they themselves commisssioned, fearing nimbyism in constituencies due to the closure of local hospitals would wound them.

Yes, of course, it's all relative. Just in case anyone got the impression I thought McCreevy was some sort of paragon of economic liberalism, I should clarify that McCreevy is the least worst of them all when it comes to economics.

McCreevy has more than doubled the spending on health during his tenure and the system has disimproved (shame on him)

Yes and double shame on that smug cretin who purports to be the Minister for Health and who would surely wreak absolute havoc at finance should he be gifted the post.

Well, maybe he'll make a better impression in Brussels than Peter Mandelson. Given the corruption and feather-bedding on Planet EU, I'm sure Mandy will fit right in.

I'd agree with both of you that liberalism is pretty relative in Irish politics. However, I would point out that much of the debate takes place at a level that's beyond the arena of the politicians - in the media, academia, among business and especially the civil service and those who lobby it. Climate policy strikes me as one very important example.

To use a metaphor from Hayek, the day to day politics is the infantry, but that won't get anywhere unless there's the artillery dominating the battlefield of ideology and policy analysis.

http://www.iea.org.uk/record.jsp?type=publication&ID=226

I always feel that "Teacher's Pet" Martin posseses some of the worst aspects of Tony Blair's political character, but is sadly lacking any of Blair's undoubted positive points (intelligence, conviction, steel). Although Cowen is pundits favourite for the Finance job and, after Bertie steps aside, for the leadership, I have a horrible feeling in my bones that Minister Martin could end up being the leader at some point. (involuntary shudder!)

Cowen would be fine but the thought of Meehaul as taoiseach just makes my skin crawl.

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