Esmond Birnie: ‘Even those of us who are concerned about debt will probably admit that extraordinary times require extraordinary steps’
Even those of us who are fiscal conservatives and think not enough was done during 2010-20 to reduce levels of public and private debt would probably have to admit extraordinary times require extraordinary measures.
Hence the importance of Tuesday’s £330 billion enormous support package of loans, grants and guarantees from the UK government which presumably will be followed on by a read across here in Northern Ireland.
The United Kingdom measures are similar in scale to similarly massive ‘war economy’ measures in countries such as France, Germany and Italy.
The justification is that fear is ravaging the economy and threatening a downward spiral in the absence of confidence-building measures.
As President Franklin Delano Roosevelt said in March 1933 “The only thing we have to fear is fear itself”.
The chancellor spoke of a £3.5bn Barnett consequential for the three devolved administrations of Scotland, Wales and Northern Ireland.
Very importantly the a executive needs to direct NI’s share of that money into support for the economy.
Esmond Birnie, senior economist, University of Ulster