Multipliers can be calculated to analyze the effects of economic policy or other exogenous changes in income and spending, on the output of an economy. For example, if an increase in German government spending by €100, with no change in taxes, causes German GDP to increase by €150, then the spending multiplier is 1.5. Other types of fiscal multipliers can also be calculated, like multipliers that describe the effects of changing taxes. Multipliers work on the downside in the same manner as they operate on the upside. Figure 1 below present’s estimates for the historical effects of shocks to government purchases on output and growth.
Forced by mandarins in Brussels, the headquarters of the European Union and the European Central Bank, Ireland’s current Fianna Fail government are actually contemplating introducing tax cuts that will see 15 billion Euros cut out of the economy over the next 4 years. Using an average multiplier of 2 this means that Irish GDP could fall by 30 billion. Thus in 2014 Ireland’s GDP probably will be 90 billion, a drop of 25%. This “collapse” of an economy that is already weak will turn a “recession into a “depression”. The end result of this “policy” will be higher unemployment, lower VAT, lower corporation tax receipts, major business , lower local government and city rate collections and stressed social services.
The alternative to this policy is for the Irish government to introduce some imitative that will manage to get credit moving again in the stalled economy. Many see the introduction of a new National Commercial Bank as one way to balance fiscal rectitude with smart economic strategy. Ireland has a young workforce, a first world educational system, an envious location straddling the USA and Europe and a modern infrastructure. Instead of thinking of the future the hapless government of Prime Minister Brian Cowan is stuck in the past. Rather than being a powerful statesman he has become nothing but a loan collector for reckless banks. surely deserves better.
We have an extensive all-island network infrastructure consisting of onshore and offshore sites and platforms (lighthouses, buoys and other aids to navigation). These can provide or facilitate the delivery of a range of services for government, local authorities, industy, research institutions and the general public.
In my role at the Irwindale Chamber, I have had the opportunity to meet with many businesses and to get to know many of the fine leaders and individuals who work tirelessly each day to make Irwindale the fine city that it is. Approximately 60,000 plus people drive into Irwindale each day to work. Here are some of the reasons why Irwindale continues to be a major business center and great place to do business:Irwindale is near excellent transportation facilities, highly respected educational institutions, a wide range of cultural activities and many recreational and entertainment opportunities. Irwindale enjoys a superior location in the heart of the East San Gabriel Valley. With four major freeways at our borders, Irwindale has convenient access to all markets in Southern California.Irwindale has a variety of healthcare options, from specialists to general health. Hospitals and medical groups that serve Irwindale include Citrus Valley Health Partners, Kaiser Permanente, and City of Hope.Education is a big priority in the Irwindale community. Residents have access to public schools, private schools and a number of colleges and universities closely surround the city. Four top public school districts serve K-12 students in the Irwindale region: Covina Valley Unified, Azusa Unified, Duarte Unified and Baldwin Park Unified. The Irwindale Educational Foundation, a 501(c)3 tax exempt nonprofit organization originating in 1987 is dedicated to the betterment of the youth through its scholarship program. This program benefits the residential community but also the businesses that are located in Irwindale and who are members of the Irwindale Chamber.Irwindale is the location for Southern California Edison’s (SCE) Energy Education Center, which is “a source of energy efficiency information for business owners and operators, architects and designers, operations and facility managers, contractors, engineers or anyone wanting to learn about the latest in state-of-the-art technology for saving energy, money and the environment. “Irwindale is home to a diverse cross-section of businesses including MillerCoors, Davis Wire, Vulcan Materials, United Rock, Hanson Aggregates, Ready Pac Produce, California Custom Fruits and Flavors, Breeders Choice, City of Hope, Charter Communications, Huy Fong Foods, Ayutla Market, Picasso’s Café and Bakery, Nellson Nutraceutical, just to name a few. A population of small to medium sized businesses continues to grow featuring restaurants, professional services, light manufacturing, high tech industries, financial institutions and more.Both the city and the Irwindale Chamber are dedicated to providing assistance and resources to help businesses succeed and prosper. The Chamber is also dedicated to promoting the community and its vibrant and prosperous quality of life. As the President/CEO of the Irwindale Chamber, I am thrilled that Huy Fong Foods, the city of Irwindale and the local resident community are working together to build jobs and a strong local economy. The rest of the world should know that Irwindale is a vibrant and positive place to do business and perhaps it is because, in this city, we recognize that a prosperous and vibrant city can only be accomplished when business, residents and government work collaboratively so that the end product is a prosperous and thriving community that works for everyone.