SF break our woke test in the battle of the (alternative) bonanza budgets
THE Government has €10billion worth of presents for us but could the Opposition be sweeter? Next week, the Coalition intend to bring us the apogee of ‘woke economics’.
Budgets used to be about tax increases and cuts, but the Coalition are aware the current mood of the voters is certainly not for that.
This week’s Budget appears to be about niceness and wellbeing.
Ministers talk about €10billion sums spinning out, maybe €14billion.
As the Government stumbles rather than flies towards its bonanza Budget – what are the alternatives?
THE WOKE MARK (OF QUANTITY, NOT QUALITY)
WHEN it comes to rating our budgets given the current mood, we have created a new economic term called the woke mark.
A high woke mark has nothing to do with good economics.
It is instead about ‘empathy’ and the political capacity to feel your pain for party political gain.
Given that a dozen variations of the Budget have been leaked on what we have heard, we have given them a high rating of seven.
RATING 7/10
SINN FÉIN
THE Sinn Féin Budget proposal observes that they will be spending between €3billion and €4billion more than that proposed by the Government. This constitutes:
A €4.1billion one-off cost of living package;
Capping electricity prices at 2021 levels until next February;
A €1.5billion once-off payment to help people meet other energy bills;
A double child benefit payment in October worth €140 per child;
Steep reductions in the Universal Social Charge for the two lowest bands, in addition to increasing the threshold to more than €24,000 for entry to the third rate;
A reduction to excise duty on petrol, diesel, and home heating until the end of March; One month’s relief for renters;
An increase in welfare rates by €17.50 per week and increasing the pension by €15;
Reducing the State pension age to 65; The abolition of property tax; Halting carbon tax increases;
Fiscal woke score – such are the amount of promises, SF have broken our woke test.
RATING 14/10
SOCIALISTS
NO ONE can accuse Richard Boyd Barrett, Paul Murphy, Brid Smith et al of not being real socialists – that may be the problem.
They plan to spend €32.5billion but the sheen is taken off that by plans to raise €25billion in taxes.
THEY PRIORITIZE:
Nationalising utility companies; Cap electricity and gas bills; Giving every household a €1,000 energy credit in Budget 2023;
Increasing social welfare rates to a minimum of €300 per week and €350 for those with disabilities; Rent controls; Free public transport; Abolition of carbon taxes; Free GP care; Restoration of the pension age to 65; Abolition of the USC; In the curious times we are now
in, the Socialist platform appears to be relatively normal.
FISCAL WOKE SCORE 7/10
LABOUR
APPARENTLY the situation is now so desperate even Labour are socialists now. Of course, like all good socialists they are opposed to the sort of change that would enable working people to keep their wages. Highlights include: €9 monthly public transport unlimited ticket; Core social welfare rates increased by €20; €1,000 cost of living grant; Child benefit hike by €10 a month; Capping childcare fees at €200 a month;
Cap on energy prices; €400 refundable carbon tax credit. A lot of assiduous work went into the Labour budget – but unfortunately the cruel truth is that little sparkled.
FISCAL WOKE SCORE 5/10
SOCIAL DEMOCRATS
THEY may be instinctive nannies but while the grim plan was filled with improving ideas and reform there was also plenty of partying. Highlights include:
€1.5billion in energy supports for households;
Free education – free books, classroom resources, school transport, an increased capitation grant and an end to voluntary contributions;
Reducing third level fees; €15 increase in core social welfare payments and a double social welfare payment in 2022, separate to the Christmas bonus;
Reduction in childcare fees by 60% over two years;
Reduction in public transport fares by 30% and a cut in off-peak travel fares by 50%;
Tax cuts coming in at €305million and proposed increases in PRSI and a new higher 43% rate. The total bill – €5.6 billion. It is a credit to the high seriousness with which they have approach politics that they have not joined the bidding boom. FISCAL WOKE SCORE 4/10
INDEPENDENTS
IN A group that is as variegated as stretching from Mattie McGrath (Independent FF) to Thomas Pringle (Independent Revolutionary) common themes that can be deciphered. It’s too little too late;
The Government are spending too much;
Rural Ireland was slapped in the face;
Dublin has been ignored; Carbon taxes should be abolished;
Government has failed to act on climate change; Re-open bogs; Greens are to blame.
FISCAL WOKE SCORE NOT COMPATIBLE WITH THE SYSTEM
ABSENT FROM THE FEAST
THERE is one absentee from the great carnival of spending.
Fine Gael made a bit of a run at it but for the remaining parties the notion of actual tax cuts as distinct to changes in the bands, were a mystery.
More absent still was any concept involving measuring or cutting State spending.
ANALYSIS
IT IS rare enough we have a competition of niceness in Irish politics so we should make the best of it.
In that regard, we are apparently socialists now.
The Greens of course are ideologues who constitute a very different picture.
When it comes to the contest of economic woke-ness the Darwinian truth is that Sinn Féin won by a country mile.
They may be talking really nice now but once the mandarins sink their fangs in it may soon be very hard to discern the difference between SF, FF, and FG.
Even now, they bear a closer resemblance to spoofers than socialists.
It may perhaps be worth noting that as the giveaway gavel keeps on banging and the bids soar ever higher that, despite the mood of spend-spend-spend, we are on a very similar ledge to the Tiger in 2008.
The opposition don’t want to believe we are on that ledge.
In that regard, they are in a state of union with the Government.