Economic Crisis

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Editorial / Periscope - Niall O'Dowd

Economic Crisis

June 25, 2008

Editorial

The new Economic Social Research Institute report on the Irish econcomy makes grim reading. The country is heading for a recession and emigration will return is the grim preduiction for the years ahead.

Meanwhile, the Sunday Independent reported that “Tom Parlon of the Construction Industry Federation (CIF) said many of its members are now trying to cope with severe cash flow problems, with some believed to be “weeks from liquidation”. He also stated that the Federation is actively assisting a number of firms in “serious difficulty.” That is sobering news for an economy that was built in a large part on a building boom.

The slowdown is already having an impact in Irish circles in America with immigration centers noting an increase in the number of young construction workers arriving here in the U.S. looking for employment.

It is a well-worn path between Ireland and America when a downturn occurs. The nonsense spouted over the past few years that Ireland, unique among world economies, was on an ever expanding winning streak has inevitably been discounted.

The facts are that Ireland was heavily over dependent on the housing boom to underpin its remarkable economic boom. The ratio of homeowners per population is far higher than in any other western country.

But the construction boom was always predicated too on foreign workers coming to live and work in Ireland as part of the European Union expansion. There are already clear signs that many of those foreign workers are returning home to their country of origin, meaning less demand for houses as a result.

Ireland is also not immune from international trends and the sub prime mortgage crisis that has infected America and many other countries abroad no doubt is impacting the Irish economy as well.

The influx of new Irish to America comes at a time, unfortunately, when it is impossible for them to become legal if they overstay their visas.

Nonetheless, they will come, like generations before them. It gives an added urgency to the need to find a way to allow legal immigration between Ireland and the United States, which is not possible at present. We must redouble our efforts.

The Students Arrive in U.S.

The usually quiet Irish neighborhoods are hopping again these past few weeks in several cities with the arrival of the JI students in America for the summer and fall.

It is a ritual that goes back over thirty years, and an invaluable link between the two countries, which allows young Irish to see America for the fist time.

The current Taoiseach (Prime Minister) of Ireland Brian Cowen was once a J 1student, as was former Foreign Minster Dick Spring, and indeed the founder of this newspaper. It was an incredible opportunity to see and experience the American way of life for a few valuable months.

There is talk about an extended form of J visas happening over the next few years with students and graduate allowed to stay up to a year. Such a system would be a welcome development, especially if American students are allowed to reciprocate and spend time working in Ireland.

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