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Tag Archives: economy

Before reading watch and listen to Yanis Varoufakis in this Youtube clip. He’s not talking revolution. He’s not even talking socialism. Indeed he’s on about that most liberal of fashions, value free, “evidence based” policies. How this could lead to a crisis requires explanation.

Ok, that was the former Greek Finance Minister making a persuasive case for old fashioned, liberal Keynesianism. This was a view that was growing in popularity in the public press and on-line in the months before the Greek election. Reading and listening to Syriza before the election it seemed that they were just doing the routine, familiar, populist anti-austerity pitch for votes. After the election they changed to an emphasis on negotiation and the sort of position outlined in this video. It was a very encouraging development and it raised the hope that Syriza might strengthen or lead the emerging consensus. That consensus was certainly not socialist or even mildly egalitarian but rather the creation of a functioning liberal economy – yes, ripe for leftward reforms but the left would defer that until a reasonably stable and prosperous liberal economy had developed. Clearly it would be difficult if not impossible to get a liberal deal of this kind through the Greek parliament without the support of the older centre-right and centre-left parties. However, somewhere during the months of negotiation the Keynesian position disappeared. Towards the end the German Chancellor insisted that any deal would have to be approved by the Greek Parliament. In doing so she inadvertently hastened the end of negotiations and saved Syriza’s unity. In the week before the IMF payment was due there were two sets of proposals: the creditors’ ultimatum and Syriza’s.  As the Greek Finance Minister insisted, there was nothing much between them. Then the P.M. decided on a referendum to accept or reject the ultimatum. There needs to be an enquiry into these negotiations because it is simply not plausible that the argument advanced by Yanis Varoufakis in this video caused a crisis.

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There is a need for a shower of realism over many who talk of Ireland’s educated workforce and the need to bend education to serve the knowledge/smart/information economy/society. I fear that the level of education is pretty poor in precisely the areas that emerging society demands. I fear too that those who talk most of the knowledge/smart/information economy/society have reflected least on what it means.

The backward workforce

Too many of my students have poor literacy skills. This is a common topic of conversation among university lecturers. So too is the lack of general knowledge among students. It is far less common to have such conversations about the poor command of pretty basic math, science and technology. I don’t want to clutter this piece with examples but an archetype might write “shouldof”, think that the USSR still exists, be unable to manipulate percentages, have no grasp of statistics and consider basic science a no-go area for all but the expert. Such a person betokens neither an educated workforce nor a competent citizenry.  

Not so smart policy

No one in their right mind would argue that that the kind of society and economy determined by increased application of technology – especially IT – does not require experts or does not require quite a few experts in these fields. However, no one who has looked at the effect and the likely future effect of these same technologies on society and the workplace would place too great an emphasis on the creation of an excessively large numbers of experts. For a long, long time technology has had a democratic vector: it demands proportionately greater numbers of effective, creative users than experts in the field itself.  The danger in the current pre-occupation with science education is that it might be successful and produce two categories of frustration: a glut of experts with no career prospects and a mass of people without the skills to prosper or create prosperity. A considered, realistic education policy will try to ensure that mass education will deliver citizens and workers who are competent to contribute in our time.

The smart worker or even the smart citizen

The world of work – or at least that part of it that pays reasonably well – that has emerged over, say, the past 30 years demands that people be articulate, literate, numerate and informed. (I should add “secure” but this would open up another argument.) These are the preconditions for flexibility, creativity and innovation. There is absolutely no point in talking about a smart society or economy unless the mass of people are pretty smart.

http://www.prospectmagazine.co.uk/2010/09/university-challenge/

http://www.prospectmagazine.co.uk/2010/09/unloved-british-universities/

It was obvious from RTE’s Frontline programme last night that many have swallowed the popular storyline that Ireland’s boom was destroyed by developers and bankers. Ireland is indeed cursed with chancers and an incompetent ruling class but that’s one just part of the story. Ireland’s FF/PD/Green governments maintained the appearance of a thriving economy by stoking a building boom; it was criminal folly. However, the fact is that the flourishing export-led economy ended years ago as industry relocated to cheaper countries. Any fool driving around the country could see this as the factories closed and the furniture warehouses multiplied. On TV last night over and over again the simplistic view was aired: builders and bankers killed our lovely Celtic tiger!

It was sad to see on this programme too an ambulance driver making a case for maintaining his small income and in so doing protecting a group of people who were conspicuously absent: rich public servants. None of the private sector workers whose function in the programme was to attack fellow workers was prepared to have a go at poor public servants. Unfortunately, the word “rich” was never used; it seems to have been banished from our vocabulary. Instead both sides seemed to want to attack “administrators” so that “frontline” staff can be protected. It was a depressing sight: two sets of workers baying for the dismissal of poor office workers while the rich sat at home watching the spectacle.