SO FAR...SO QUICKLYEvery shop I go into these days is offering cut-price this and half-price that in an attempt to lure the jaded shopper in and make him part with his hard earned cash. We are being coaxed and teased in to spending by irresistible offers and never to be repeated bargains. ‘SPAR’ an independent grocery franchise are offering a variety of goodies as Eurosaver deals while the bigger outlets like ‘TESCO ‘and ‘DUNNES’ have regular 10% back days and lots of items with marked down prices throughout their stores. The problem that these ‘offers’ are addressing is that in uncertain economic times people are loathe to spend, being unsure what lies ahead.
Already as a public sector employee I have taken a noticeable pay cut in the form of a government pension levy, and this is on top of an employment levy in place since the beginning of this year. Our finance Minister is giving the Budget a second bash in April and this is the single event that has the national collective shaking in our boots ! It seems this time around everything is up for grabs as the legislators plan to attempt to gather 6 billion Euro into the government coffers.
Strange to say that during our good years we paid top buck for everything without a murmur. For a period back then it became taboo to question any price or charge and to bargain or shop around was considered slightly vulgar ! We reached an apex of wanton spending fever when the hottest accessory was to buy an overseas property, just for the hols don’t you know. Every second person it seemed were then the proud owners of apartments from Spain to Bulgaria , and in the heat of this buying frenzy more practical considerations like the ongoing cost of maintenance, and the property value depreciation were not really considered. Now alas the chickens are coming home to roost and the Tiger years were like a long weekend financed on Visa, but this is Monday morning and the Credit card statement is in the post !
As a single man I am not greatly affected so far, but I am aware there are many of my fellow citizens who are facing uncertain and unstable times ahead. Job losses are the order of the day and nobody (apart from the public sector, I suppose) can be sure about what is lurking up the road. Fortunately mortgage interest rates are at an all time low and the basic cost of living has been reducing over the last few months. The one lesson however that we have learned in recent times is that everything can change so quickly ,even literally overnight. And so the discounted prices and special offers continue, stark reminders of an economy in crises and changed days indeed from those we enjoyed only a year or two ago.
Gerard O'Shea
10 comments:
Correction Gerard, The levy is not a cut in pay, it is a payment towards your pension, which up to now has been free! People in the private sector pay far more for their pensions with a lot less guarantees. The levy goes a "little way" towards rectifying this unfair situation.
Thanks for that BRIAN(!), it sure seemed like a pay cut to me, as in less money in my hand at the end of the week. I'm not complaining though,we all have to do our bit. I think you and Antoin would have a lot to talk about, I might introduce you sometime ! Appreciate your input,keep them coming.
Good Man Brian! I am glad to see people out there who have a good grasp of reality. Some people are begining to discover reality and like the rest of us are finding it difficult.
Good Man Brian! I am glad to see people out there who have a good grasp of reality. Some people are begining to discover reality and like the rest of us are finding it difficult.
Good Article! Found Brian's comment very informative.
Just for the record (and to advise Brian), in the public sector, well certainly in the City Council where I work, before the income levy and the pension levy, we were already paying 7% superannuation towards our future pension. This is a fact that seems to be complete glossed over by the media, etc. We are now paying up to 17% altogether toward our pension fund out of each pay cheque!
Joy, your pension will last you until you die. In the private sector your pension lasts until all you have saved up (by yourself) runs out. These days quite a few people in the private sector are in serious trouble because their pensions have all put disappeared because of the banking crisis. No guarantees!! I suspect many people in the public sector (guaranteed employment & pension sector) had no idea of their privileged position until the current recession set in and are a little bit dumb founded at all the commotion. A bit like someone having a loaf of bread in the midst of a famine.
The dole queues have grown enormously over the last few months, there are no civil servants ("servants", what a odd word for a privileged class) to the best of my knowledge in these queues; Yet!!
Brian, for the record, I won't have been in the public sector for 20 years when I reach 65 - so will only get the basic old age pension. I too am paying into a private pension to try and supplement this, so like you I'll only have the benefit of that pension fund until what I've saved runs out ... if there's anything at all left in there by the time I'm 65. Also I'm only able to work 3 days a week because of Rheumatoid Arthritis - so my contributions are less than most peoples. The pension levy is very definitely a cut income - I'm down €60 a fortnight, while all my medical expenses increase constantly.
Joy, I am not saying its not easy at the moment, but you will have a job until you are 65, unlike many other people. And its guaranteed!! For the moment.
Many of my friends and colleagues have lost jobs or have had far in excess of €60.00 per fortnight cut in there wages. And many of them would be willing to take further wage cuts in their wages to maintain employment, Any job is better than no job in the current envoirnment.
If people in the public service were seriously concerned about their reduced income they would be shouting from the rooftops, alas I think they are fearfull of a public backlash, which believe me is very real possibility.
The clash of two different mentalities, maybe we can all learn a little from each other over the coming months. How comfortable we feel at the moment depends totally on where we put your trust.
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