Esmond Birnie: ‘Even those of us who are concerned about debt will probably admit that extraordinary times require extraordinary steps’
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.
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Hide AdThe 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