When Aer Lingus decided to pull out of the Shannon region, we in Limerick were treated to an array of patronising Dublin-based commentators explaining to us that something called the Free Market had dictated the move.
We were advised by the condescenti to get over it, to move with the times, and to get with the program. The free market, and not the government, is what decides things in this brave new world, according to an assortment of overbearing fools in the mainstream media and on every second Irish political website.
Those of us who had the temerity to question this new religious dogma were dismissed as unlettered hicks unable to cope with reality, or at least we would have been if we'd allowed that to happen.
But that was in the days when the same idiot condescenti were busy persuading themselves that we were the richest country in the world, when in fact we were simply up to our necks in hock. In other words, when sipping a languid ten-euro frappociappocino in some Blackrock bistro, these airheads were able to persuade each other that nothing could go wrong go wrong go wrong go wrong …
And since the same dopes are the ones who control RTÉ, they were able to put out the same vapid, cretinous message to the rest of the country's wannabes: the free market is the fount of all wisdom and devil take the hindmost.
But nothing lasts, does it? The heartless, patronising cant was fine until it threatened those who'd grown fat on the free market. The banks and the biggest of businesses.
And then, all of a sudden, we heard nothing about the survival of the fittest, or market forces, or any of the other empty-headed catchphrases that pass for analytical thought among the South Dublin smuggorati.
Indeed not.
Now, all of a sudden, we see government leaders, including rock-solid ideologues like GW Bush, falling over themselves to pump hundreds of billions into the financial system, in case their banking buddies should feel the pinch. Nobody's talking Free Market anymore.
All in a blink, GW Bush has become a Socialist and nationalised America's banking system.
Who'da thunk it?
So, the next time some arsehole company like Aer Lingus decides to ignore its broader responsibilities as a corporate citizen, let no condescending twat from UCD lecture me about market forces.
The market is not the universe. It isn't even a little sub-system. It just happens that its behaviour can be approximated by some of the same equations that govern physical phenomena, and it's a disastrous mistake to presume that the two are therefore identical. There's only one force in any market and that force is greed. It must be controlled if we want to live in a society instead of an economy.
The market is not a physical, natural phenomenon, except in the half-assed understanding of people who know nothing of the real world, or indeed of science or engineering, yet who use and misuse scientific concepts to lead and mislead the rest of us. These are the people who will tell you that they've stress-tested the Irish banks and found them safe.
Stress-tested my arse!
These people, who have never wielded anything heavier than a pencil, and who have never studied anything more practical than a balance sheet, would have no idea what a stress test is, or how to validate it.
Remember, when you hear economists using this sort of language, you're dealing with people who have acquired not one single useful skill in their entire lives, other than going on TV and talking sanctimonious and meaningless shit to their next-door neighbour who got them the gig on RTÉ in the first place and who's now interviewing them.
This is what it means to have such a smug elite in such a small country: mediocrity, incompetence and corruption.
"Remember, when you hear economists using this sort of language" — but not economists in general, right? Otherwise someone I know is going to lynch you. :)
I gather the US Gum't buy-out of bad debt is going to cost approx the same as the Iraq débacle so far. Can you believe it? And the US is already broke.
I hope my comment doesn't "shut down" this comment thread. It seems to have happened a few times lately. :(
Great post Bock…
Have a read of RawDawg, for the American perspective..
Oops Heres the link http://rawdawgb.blogspot.com/
Don't blame it all on the D4 condescinti in relation to Aer Lingus, our own poison dwarf O'Dea spoke out of the two sides of his mouth and sold us down the Shannon.
great link at my place to a nyt op-ed piece…we live in interesting times, sugar *sigh*
here
Bock, as a regular reader of your site, I'm quite disappointed to read this particlar post.
Its unfortunate that you try to draw a line between the turmoil in the financial markets and the shockingly delinquint management of Aer Lingus.
Nothing to do with anything, Aer Lingus is a badly run company. As an extension of this, for most employees, we can actually identify that most of the companys we work for in Ireland are shockingly badly run.
There's no money to be made for any airline in Shannon. There hasn't been any money to be made there for years except for the subsidised government handouts to be made in shannon for years.
Its all noble that you folks have your own airport, but if you cant attract any visitors there apart from the dopey half awake american tourist who's obliged to land there for ridiculous historical reasons, then maybe the economists might not be all that wrong.
Bock, are you that much of an innocent that you really believe in corporate citizenship? What a pile of wank. Company's are in place to make profit, not keep afloat a handicap mid western airport.
Doesnt matter who says it, but if you cant see the writing on the wall, then tough to live in your world!!
Bear with me here for a sec. I'm only a half-baked Dub. The family is from Donegal, on both sides, but I was the runt of the litter and happened to be born in Dublin. Much of my heart is in the north-west.
There are various regional airports around the country. Is there anyone here who can give a brief run-down on them? As in: who owns them and what their financial situations are, and what air services use them and what *their* financial situations are?
I'm well aware that Shannon is the biggest and I'm aware of the historical reasons. But without the refuelling need (and without the business Shannon receives from the US military!) is there a good argument as to why Shannon should get preferential treatment over and above other regions?
Letterkenny doesn't even have a rail link. Someone wrote on a forum, "It's not right Donegal people with cancer sitting on buses for 7 hours to get treatment …"
Isn't it funny the way people see what they want to see instead of what's actually written?
The post isn't about Shannon or Aer Lingus. It's about the fact that the free market is invoked when it suits and ignored when it doesn't. It's about the lecturing we got when we complained, and the condescending tone of those lectures.
In other words, much like the sort of lecture we've just received from "Realism".
But Bock, I already commented on "GW Bush has become a Socialist and nationalised America’s banking system". My last comment was more curiosity than anything else — and genuine at that. If it's OT, then just ignore me.
Just when I thought it was all gonna end in tears GEE DUBYA moves in ! Who'd a thunk it indeed! And here in Ireland they're saying that if you have money in a bank that it's safe but that ain't so at all. If that thought takes off here will the son of 'Mature Reflection' fully protect the banks here? Yet the same guys are proposing cuts in public expenditure! … all very confusing this 'Free Market' thing. But who do I consult?
My partner has just put it all into perspective now that the Government has raised the Irish deposit guarantee to €100,000 for saver in credit unions as well as banks and building societies!
It's a case of socialism for the banks and Market Forces for the poor!
Nora — That comment wasn't addressed at you. It was a reaction to the patronising little lecture from "Realism".
We can talk about the financial viability of things another time. And also the question of preferential treatment. We might, for example, discuss the profitability of the new Dublin light rail system and the amount of taxpayers' money that goes to support it.
We might also discuss whether profitability is the only criterion, and therefore whether we should also close down schools, universities, libraries, museums, public parks and hospitals if they don't show a profit.
In my opinion, the Free Market argument is now thoroughly discredited and dead.
Andrew — Well said. That's exactly what it is.
Okeydoke, a Bhoick
Fucking Friedmanism. We'll have a junta yet, mark my words.
Gordon Brown has been getting a rough time lately, but he's been making a point in the past couple of days that I hadn't thought about. He's saying that financial markets are now global in operation while regulatory bodies are national. He's calling for a global regulatory body. While I don't like constant moves to 'global' this and 'global' that, he seems to make a logical point. (But god knows this is not my field.)
Also, some story coming out about speculators making millions from HBoS shares only *minutes* before the BBC announced that HBoS were being "rescued".
http://tinyurl.com/3ehgn8
Insider trading making personal fortunes?
@ Thriftcriminal
You mean you hadn't noticed?
@ Nora
Re global regulation: this has been the position since the BCCI scandal in 1991, and regulation has not yet caught up.
IMF has been doing a bit of cleaning up, but regarding states rather than individual banks as such, though it does run regular risk/robustness reviews of financial sectors in its member states. However, this would not amount to a global financial regulator in the sense you and Gordon Brown mean and its own ideology is a bit dodgy and highly influenced by Uncle Sam.
EU has also been tightening up over the years and it remains to be seen how robust the system is there, and particularly within the Euro area.
Re BBC: they are getting it rough. First the premature announcement of the collapse of building 7 on "9/11" and now this. Maybe there is a timewarp in Bush house that has been reactivated by the collider. Now that I think of it, they claimed to have been the only broadcaster in live at the launch, and now look what's happened. A two month shutdown.
"However, this would not amount to a global financial regulator in the sense you and Gordon Brown mean"
That's the point, Benny. We all know the markets are global, but I understand that (for example) there are regulations in the UK that are somewhat tighter than in the US. That's what I'm picking up from the commentaries.
By the way, there is no suggestion that the BBC did anything wrong. The info could have been leaked anywhere.
Given the choice between a free market economy and the socialist crap that you are proposing Bock, I'll take a free market anyday, Socialism is a bunk thanks to the exact same reasoning you give above, Greed.
Has Soviet history taught us nothing?
there was a time that I though your rants interesting, but unfortunatly this is complete sensationist knee-jerk crap just like I all the 'poor litle limrick scumbags' whinging over the loss of Aerlingus in Shannon, When they barely ever used it
*Yawn* I'm bored with you now Bock
*yawn*
Are you twelve?
You'll have to try a bit harder George. Didn't your teacher tell you that calling something crap isn't an argument?
What exactly did you think I was proposing?
I'm trying to factor out the Shannon airport thing…
Where I agree with you is that the state is obliged to oversee the corporate world in order that the common good (society) is protected. The state's principal duty of care is to the citizenry, not to bodies corporate where its role is to regulate, establishing a common legal operating standard for different forms of enterprise, and open and fair competition.
The problem in 'developed democracies' is that corporate interests have too much political influence. Regulations are 'liberalised' and then the citizenry suffers. For instance, it has long been madness to allow brokerage betting (at no real cash cost to the better) on banking stocks.
As for Shannon airport – it only came into existence because of the flying boat traffic from Foynes and what was initially the maximum long haul distance that planes could fly in the 1940s and 1950s. It was kept going from the 70s until recently by a combination of the 'free zone' and state air traffic regulation, but it made no practical sense because there wasn't sufficient local traffic.
If I were the operator of the airport, and I have used it this year, I would be trying to establish it as a major hub for low-cost, no-frills transatlantic travel. However, the portents for that aren't great now what with the cost of fuel and the likely introduction of an environmental tax on air travel in the near future.
So, how does Shannon's traffic compare with Cork, Kerry, Galway, Knock and Derry aiports?
Conan, here's some (rounded) passenger figures for Irish Regional Airports – 2007.
Shannon : 3,624,000
Cork : 3,211,000
Ireland West Knock : 557,000
Galway : 315,000
Kerry : 185,000
Waterford : 116,000
Sligo : 38,000
Donegal : N/A
(Sorry, Bock, I know you don't want the jist of the topic to be hijacked by the "let's close Shannon brigade" , just giving the figures Conan asked for.)
As for those former free marketeers, supppose they're too busy now swotting up on the old Trotsky papers that kept them going through their protest days in UCD before "daddy" sensibly steered them in the direction of Montrose, Doheny & Nesbitts, etc, not to mention the delights of speculation.
New thought dictats will be issued shortly from RTÉ's brainwashers once the revision is complete when Student Socialist Mk.ll shakes off his Economic Commentator scales to re-emerge and address our collective conscience.
At least until the next Tulip Boom.
Conan — The point about Shannon wasn't so much about Shannon's viability, but more to do with the free-market dogma everyone preached to us at the time. Now that the free market has been abandoned, I wonder what shibboleths will be invoked next time.
I don't think we can have a meaningful discussion about the points you raise without taking into account the broader context, which is the disproportionate development of Ireland around the Dublin conurbation, subvented by the rest of us.
It's hardly a surprise that business and population would be sucked away from the rest of the country when the government insists on pumping money into the unsustainable urban sprawl that Dublin has become. For example, on developing a radial road network with Dublin at its hub.
The problems with this country are the same one we've always had: political mismanagement and short-sightedness.
Hoof — Thanks for the information. That's very useful.
By the way, Conan is an old friend (internet time) and not, as far as I know, part of any agenda, other than to keep me on my toes, which he does. Too well at times, the bastard.
I've responded previously to your issue with the "disproportionate development of Ireland around the Dublin conurbation".
I don't think it's true, I think the revenue raised in the greater Dublin area may be in greater proportion than the spend nationally. And when ministers decentralise departments of government and state agencies to their own constituencies, who subvents that process?
Anyway, I believe it's a redundant argument, that we're one small country and that being anti-Dublin is like arguing with history.
The natural development of Dublin was put on hold by the Act of Union. It only began to gather some momentum again in the early 1960s, and its development was contingent on migration from other parts of Ireland at a time when there was massive emigration from the country, including emigration by Dubliners.
The same bad planning affects Dublin as affects our other cities, villages, and rural townlands where (for instance) the water table is polluted by septic tanks and slurry pits because folk want to sell building sites rather than farm.
Conan — I've never agreed with artificial decentralisation of government departments. In fact, I don't think it's decentralisation at all. It's just recentralisation. Hog-trough politics at its most venal.
Likewise, I wouldn't have too much of a problem with the growth of Dublin if it was managed in a rational way. But Dublin now extends as far north as Monaghan and as far south as Kilkenny, all low-rise, car-intensive and incapable of supporting a public-transport service.
It's because of this chaotic unconsidered development that Dublin consumes more than its share of resources.
What's your view on radial motorways and rail-lines?
My view on motorways – wherever they're to/from – is that they fracture the communities they pass through and cut off villages and towns from their natural hinterlands.
Business interests want to get products faster from a to b by road and demand the state oblige with them with the infrastructure. Mostly I would say it's goods inward rather than goods outward, so basically we're making it cheaper for folks abroad to sell their goods to us – at a cost to us not them.
Yes, the country is woefully served with midland routes north/south, but I'm not sure roads are/should be the answer. More anon…
Ok, Let me get this straight…
I'm 12, the free market is dead, Dublin is evil and no one dare disagree with Mr. The Robber lest they feel the cut of his razor sharp wit.
Thanks for the good stuff Bock, but a blog that insults and seeks to denegrate me for having an alternative point of view is not a place that I wish to be, so long and thanks for all the fish.
George —
You said those things, not me. Are you having a little hissy fit?
Mind the door.
…
Rail is interesting. Correct me someone if I'm wrong but initially it went to Ireland's main passenger port – Dunlaoghaire from Dublin city – then it followed the canals and connected the main cities, Dublin, Belfast, Cork etc. There was two way passenger and freight traffic and it was the way to move cattle and horses around the country, even after the horse breeding economy of Munster collapsed after WW1. I can remember horses travelling by rail to the horse show and Goffs sales. I can also remember Knock pilgrimages by rail advertised on posters in train stations.
We still have what one might call the mainline rail network. But, critically, we have lost the extensive branch line network, much of it lifted and sold off in the 1950s. The most infamous of these closures (because it was patently stupid) was the Harcourt St. line which ran from Shankill to Harcourt St. – this has in part been reopened as the LUAS line, with a kink in the 2nd phase of its development which will see it divert, usefully, past/through a host of newly developed commercial and residential sites in sth county Dublin. One could pose questions about the cost of this re-routing, about who bears this cost, and about whether the opening of the route and development permissions for huge land holdings were conducted with due process.
In the Dublin context it is relevant too that the tram system was done away with also in the 1950s. It was done, I suppose, in the name of flexibility, made possible by newly mass-produced diesel engines which were being used in the bus fleet and, in heavier form, was replacing the rail steam engine.
So in the late 1950s, for want of resources, the state began to under capitalise public transport at exactly the same time as our cities began to develop a wider suburban footprint, the kind of footprint that was enabled by the car rather than existing public transport capacity.
Hence bus routes in Dublin often became longer, but without there being more buses to serve the routes so the frequency of buses diminished… and you can see how fewer buses creates more car dependency which in turn puts pressure on road space and delays buses further. Bus lanes established only in the last decade are beginning to make a difference.
The policy vacuum that facilitated this debacle was prevalent throughout the country but because of faster population growth it was felt more urgently in Dublin. Potential commuter rail links (say – Cobh-Cork, Mallow-Cork, Ennis-Limerick, Tuam-Galway) were all ignored for far too long.
We're now playing catch-up for fifty years' neglect and the greater Dublin area is completely fucked, arguably more so than any other population centre in the country. In 1911 a train (with more stops en route) would get you to Dun Laoghaire faster, and later in the day, than you can do the journey today. And it gave a lot more employment. The tunnel (under the eastern corner of the Phoenix Park) and cutting throughn Cabra is the only link between lines out of Heuston station and lines out of Connolly station. It's very limiting – ie about adequate for shifting rolling stock but useless for passenger services. Dublin needs an undergound 'circle' line, it needed it 25 years ago.
Other cities may need similar public transport initiatives (like Galway's recent bus lane to Claregalway) but they haven't needed them for quite as long as Dublin.
Conan –
What a comprehensive reply, and wasted in the back end of this site. You should put this up in your place. It fills in a lot of gaps, and it steers us towards badly-needed common ground.
"Dublin needs an undergound ‘circle’ line, it needed it 25 years ago."
Conan, maybe you could clear up something for me. A taxi driver (!) once told me that the British had made a start on plans for a Dublin underground, and that we "shot ourselves in the foot" by gaining independence at the time we did. Is this just a fairytale?
(Great stuff – 'Amen' to what Bock said.)
Nora, I haven't heard that one… I imagine, had we stayed under British administration, that Dublin would have had development similar to provincial cities in the UK. So perhaps a comparison with Liverpool, Birmingham, Glasgow etc would be useful.
There is a theory – I don't subscribe to it although there may be some element of truth to it – that Dublin after accession to power by FF was perceived to be a relic of empire (less truly 'Irish' than the rural west, for instance) and suffered political neglect on that account.
What about this 2008 train
that takes 7 hours from Greystones to Killester.
Cheating slightly, I know, but think it through. Why does the DART close down overnight. A tenth the price of a taxi and it could do wonders for the local nightlife.
Apologies, Bock, for the diversion in picking up Conan's transport point, but the transport theme seems to evoke even more passion than the banks at the moment. Mind you, a full market analysis of the above point might be worthwhile.
(If the hotlink deprecates, please feel free to delete this comment. I'm getting close to being out of my html depth here.)
HTML link content was edited out by your software, so I'll try and say it in words.
Check out the trains from Greystones to Killester between 2300 and 2400 on the http://www.irishrail.ie site.
Thanks, Benny. You have to use the href tag to make the links work, which is a complete pain in the arse for most people. I'll work on it.
Btw Bock, you'll be delighted to hear that the crowd running RTE (1960s to 1980s) was the same crowd as ran the Harbour in Limerick for generations… the Knights! Tis true!