Saturday, November 19, 2011

A Return to a Black Economy


Are We Heading
downhill at SPEED
into an even Blacker
Black Economy?

The leaked government papers from Germany show that we Irish are heading for more and more and more, and even more taxation. A general VAT rate of 23% will encourage not only cross-border trade, but will fuel a very healthy growth in the already thriving black economy.

The crazy Irish taxes on home heating oil, making it some 20+% more expensive than a few miles up the road in the north of Ireland, has prompted me this winter to forgo on oil heating altogether, and instead go for the dirtier, more carbon intensive but cheaper option of coal to heat my home.

Dr Sam Vaknin
In July last, I re-published, with kind permission, a very interesting piece by Sam Vaknin on Black Economy called "The Blessings of the Black Economy". I recommend it to my readers.

Depression, Substance Abuse and Suicide

It would be far too easy for individuals to fall into a state of depression and anxiety given what we are facing economically. And all that economic and psychological suffering simply to pay for the robbery, the cheating, the greedy mishandling by bankers, the despicable speculators, and the corrupt elements of government. 

Economic depression is intrinsically linked to psychological depression, which in turn is linked to substance abuse, social disorder, mental depression, and suicide.

Sam Vaknin shines a ray of hope on what I believe is an inevitable outcome of the unjustness of the economic situation.

Roll on The Black Economy

A great way of avoiding VAT is to establish bartering systems. This can work very well with services - I do some work for you, as a favour, and you return the favour in some other fashion.

Cross border day trips will boom so there is great hope for the traders North of the border. Repair and maintenance services will boom, as people will not be in a hurry to scrap older equipment.

With the extensive penetration of social media, all good ideas will very quickly spread, and people will find a way around draconian taxation.

I did not benefit in any way from the Celtic Tiger, I did not cause any losses in the banking system or the economy, I therefore do not see that I should be asked to pay for the cheaters and speculators mistakes. I will be doing all I can to avoid paying high taxes to bale-out the banks.

An Economic Famine

As Sam Vaknin points out in his thesis, a healthy Black Economy might be our only hope of preventing the country going completely and irretrievably into the red and everlasting debt. An economic Famine that could crush the very life from our economy and our people, depleting the population and denigrating our people just as effectively as our historic famines.

Moral Leadership

If the government had any notion of how to lead people, they would lead from the FRONT. This they could simply do by taking a token 50% cut in the enormous salaries and capping all expenses to members of the Irish Parliament. But have they even talked in this direction - - - ??


1 comment:

Stephen said...

The next few years are going to see an increase in indirect and direct taxes so expect a big increase in the black economy in Ireland.