Weekend Economists at War! January 10-12, 2014

[Demeter]

64. Ireland's Rebound Is European Blarney

http://www.nytimes.com/2014/01/11/opinion/irelands-rebound-is-european-blarney.html

I was talking just before Christmas to a young man who sells shoes in a department store in Dublin. He told me that a television news crew had filmed interviews in the store the previous day. They wanted to know if sales were picking up during the vital holiday period, indicating that the battered Irish economy was, after five grim years, on the rise at last.

Most of his colleagues said that, actually, sales were rather sluggish. One was more hopeful and said that there were signs of improvement. When the young man watched the TV news that night, he was not entirely surprised to find that the only interview that had made the cut was the one with the optimist.

Everyone wants Ireland to be a good-news story, proof that a willingness to take the pain of prolonged austerity will be rewarded in the end. Ordinary citizens are hungry for some hope. The government, in the words of Deputy Prime Minister Eamon Gilmore, was “determined that Ireland would be Europe’s success story.” An influential board member of the European Central Bank, Jörg Asmussen, says, “The Irish program is a success story.” Chancellor Angela Merkel of Germany praised Ireland as an example of how crisis countries could turn themselves around.

The only problem is that, for most of us who actually live here, Ireland’s success story feels less like “The Shawshank Redemption” and more like “Rocky.” We haven’t been joyously liberated; we’ve just withstood a lot of blows. We’re still standing, but we’ve taken so many punches that it’s hard to see straight.

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