A Solution to Ireland's Economic Woes?

Oy! It's not enough that the Irish economy is a mess (unemployment over 12 percent, the government tax take down almost 50 percent vs two years ago; significant increases in total government borrowings), but now that very same government is talking about an imposition of even more taxes and pay cuts upon its already over-stretched public.

I state this due to a comment made in a recent blog in which an erstwhile visitor noted that she didn't realize the good people of Ireland pay loads of taxes. So...and without further ado - and just to make you realize how lucky you are to possibly live in a country with more reasonable tax burdens (if only for the moment) - then take a look at the following.

Here's what we pay in Ireland:

• VAT - 21.5 percent Value Added Tax. This tax is added - like a sales tax - to almost anything that moves: food, clothes, cars, you name it.


• Stamp Duty - we pay a 'Stamp Duty' on many items: credit cards, housing, insurance products...don't worry, if you use it or buy it, the government will tax it.


• Salaries - many of us pay two types of taxes on salaries: PAYE (sort of like Income Tax) and PRSI (sort of like Social Security). We're all taxed in 'bands' that start at 20 percent, then soar to over 40 percent. Many people on higher incomes may soon pay over 50 percent of their total salaries in assorted income taxes.


• Automobile VRT - this bombshell of a tax can put another 20 percent (or more) onto the cost of purchasing a new car in Ireland. We pay VRT in addition to VAT on new cars.


• Fuel Taxes - the cost of gasoline (petrol) over here currently runs about 3 times what a person might be paying in the US. Seventy percent (or so) of that cost is government tax.


• TV Licence Fees - anyone who owns a television in this country has to pay 170 euro per annum for accessing the wonderful local programming that courses through the air.

I could go on and on, but I won't. Now don't get me wrong: we do receive services for these crazed taxes: a reasonably good, almost free medical system ensures that you won't go broke should you need your head replacing; free public school systems; an almost free university system (which, it seems, might no longer be free in the near future); a pension when you retire; unemployment benefits if you lose your job; a children's allowance payable to any family - regardless of income - of 166 euro per month for one child; 332 for 2; 535 for 3, and up to 1,550 euro per month for 8 children (makes one want to have lots of kiddies, doesn't it?) Too, many people - almost 50 percent of the populace who are below the taxable income tax threshold - pay no tax at all....

But...things are about to change.

The Looming Budget
In early December of this year - a few weeks from now - the government is planning to implement a hair shirt budget, one of the most daunting since the miserable early 1980's. In this budget - a necessity due to the horrid economy and swelling government spending - our erstwhile Irish public representatives are reported to be planning a whole series of increases in taxes, together with cuts in public sector pay. The results could be alarming.

Recently, the OECD - those mandarins in Europe who cobble together fiscal recommendations for members of the European Union - suggested wide ranging government initiatives designed to curb public sector borrowings, while promoting (we hope) job creation. Those recommendations included everything from charging tuition for 3rd Level (university) attendance, to significant cuts in pay for public sector workers (read: teachers, police, firemen, nurses, and bureaucrats), to re-tooling the tax table to include more and more lower income workers in the tax net.

Should the government follow the OECD's lead, the shorter term outlook will probably result in: strikes, increased taxes, short-term economic deflation, a drop in total disposable income, and increased unemployment. However, and longer termed, the government here might finally find a formula that will lever Ireland out of its current economic difficulties, and toward a reasonably prosperous future.

For the past 10 years, the Irish economy - and the Irish themselves - have been living far beyond its means. While we may be taxed to the hilt, we were also some of the best paid people in Europe. The result was an 'irrational exuberance' that led to soaring debt as we all financed new BMW's, holiday homes, and global vacations. However, the Celtic Tiger proved to be just as fragile as any human being, and finally succumbed to a combination of domestic and international greed, as we all sought to feather our own nests.

All of us who live here have already had to tighten our belts as the economy has continued to sour. The coming budget will mean that we'll all have to tighten our belts further.

But by taking a bit more pain now, we may be in a position to offer our children and grandchildren a brighter future.

Ambulance Chasing Irish Style

What Happens in Ireland When You Need an Ambulance:

Yesterday, our neighbor's son Paul came charging to our door. The poor kid was scared to death; his 13 year old chin was quivering like Jello: "You have to come now! My Mum has collapsed!" So, of course, that's exactly what we did. My wife and I ran next door to discover our wonderful neighbor Paula lying inert on her stair's landing. She was breathing, had a strong pulse, but she was absolutely comatose.

At which point my good wife sprung into action. "Call 999!" she yelled. ("999" in case you didn't get it, is the Irish equivalent of 911.) "We need an ambulance! Right now!" And the young neighbor's son, Paul, did exactly that. Without hesitating, he ran to the phone.

And while we made Paula confortable, we took comfort in the knowledge that a local ambulance - complete with its crew of EMT specialists - was steaming toward us, blue lights blazing, weaving in and out of traffic on its way to rescue a favorite friend.

Now - before moving on - I should explain the following: Paula and her family don't have health insurance. At least not the type that many US citizens have. And yet, my wife, Paula, or her young son didn't think twice about calling for an ambulance.

Why?

The cost to Paula and her family was exactly... (wait for it)... ZERO!

What Happens in the US When You Need an Ambulance:

If you're not insured, all hell breaks loose. Two weeks ago, I had the pleasure of visiting Kernville, California. In case you didn't know it, Kernville is located about 2 and a half hours NNW of Los Angeles, and maybe an hour or so from Bakersfield. Located in the arid corners of the Sierra Nevada mountains, and maybe 3 hours from Death Valley, I was struck by the beauty of the spot. The Kern River curls around the town, its tumbling energy attracting trout fishermen (or is that fisher-people, if I'm to be PC?) from all over the Western US.

Kernville has also become a fairly popular destination for retirees. Housing costs - at least by California standards - are relatively reasonable. And the location is everything you would want if you're the type to enjoy the outdoors.

But there's a problem. For you see, Kernville is a good 60 miles from the nearest hospital. And that, of course, means an Ambulance trip if you get into trouble.

I was made aware of this fact - and worry - while having a beer at the local tavern. A retired Viet Nam vet was bitching and moaning about this sad state of affairs over his bottle of Coors: "I love Kernville. But I get worried about medical costs," he said. "Recently, my friend's wife got sick. They called the ambulance to take her into Bakersfield. He was the one that almost died when he got the bill. Just transporting her from here to the hospital was over two thousand dollars. He doens't have insurance, of course."

I've been gone for too long because I almost choked on my Miller.

When I got back, I did a bit of research. Many US ambulance companies charge by the mile. And if you don't have insurance, you get stuck with it. So what does one do in California...or Maine, Florida, or Utah if - like Bernie and I - your neighbor's kid rushes to the door and his Mom needs an ambulance, and the family doesn't have insurance?

Pay through the nose, I guess.

The Pros and Cons of Socialized Medicine

Ireland, of course, has socialized medicine. That's why the ambulance bill was zero. Of course, somebody has to pick up the cost, and that someone is the taxpayer. Remember, please, that Ireland has some of the most onerous taxes in the western world. We're taxed on almost everything: salaries, of course. But we also pay a 21.5% sales tax on almost all goods and services; additional taxes when we buy cars, houses, and investment or summer houses; and tax levies on almost anything that you can imagine...television programming, credit cards, check writing... It's a horrible state of affairs, and means that many people take home less than 50% of their gross pay.

BUT, and it's an important BUT...at least if we want to order an ambulance we know that it won't break the bank. Nor will Irish citizens have to declare bankrupcy if they're uninsured and need a hip replacement, or triple bypass, or require a kidney transplant.

The downsides of socialized medicine are immense: the Irish government is ultimately responsible for the levels of care that we receive. To that end, they've developed a huge, cost-inefficient bureacracy - our Health Board - to oversee national medical care. Recently, and due to the current economic mess - a variety of interest groups have analyzed the costs of that care. And the results have proven eye-opening: huge amounts of waste - particularly within administrative levels - have gone unreported, and undetected, for years. Which means, of course, that Irish taxpayers have not received the sort of cost-effective care that they are entitled to.

As a confirmed fiscal conservative, such waste bothers me deeply. And as I watch Obama's health care proposals move through its various stages, I can only feel sorry for Americans as they ponder the consequences of a national health program ultimately run by bureaucrats. Deciding pro or con on such legislation will be difficult.

While I am not totally convinced of the efficiency of national health programs, all I can say is this: when we rang for an Ambulance to help Paula, we didn't think twice about the cost.

For more stories on living in Ireland, consider Tom Richards book A Survivor's Guide to Living in Ireland, available at http://www.escapeartist.com/.

Halloween - as Exported from Ireland

Ah, Halloween...a time for trick or treat, and the Great Pumpkin (if you're a Charlie Brown fan, that is). But did you know that the origins of Halloween are Irish?

That's right, folks. Things that go bump in the night started out over here, and is a westernisation of the Gaelic festival of Samhain. Saimhan (which roughly translates to 'Summer's End' from the Old Irish) is the end of the 'light half' of the year, and the start of darker times. If you live in Ireland long enough, you can understand why. Daylight Savings Time ended here last weekend. Now, it starts to get dark at 4:30pm or so...and we have that to look forward to for the next 5 months or so. The Ancient Irish had to cope with this same darkness. So is it any wonder that they wanted to create an excuse for a hoolie? At least they'd have some fun before falling off a cliff that couldn't be seen in the Irish darkness...

Saimhan was, however, not only an end but a beginning... It was the end of one year, and the start of the New. So it was a time for new beginnings, and new journeys. To this day, the Irish celebrate Halloween a little differently than the American version of the holiday...and to be frank, it can be much more fun.

Bonfires of Light

When I first came here in 1992, pumpkins weren't readily available. But I'd go out of my way to order one, ensuring that I could carve my jack-o-lantern just as I had in the States. Mind you, the neighbours probably thought I was crazy! They never carved Pumpkins. Instead, they carved out the innards of a Turnip. Have you ever tried making a jack-o-lantern out of a turnip? It's hard work!

But the Irish had - and continue to have - many other traditions that at the time were somewhat foreign to me. For instance, they would always serve a Halloween Brack, a tasty dense cake of raisins and fruits. Buried within would be a ring. The person who was served that ring was bound to be married in the coming year - and hence a new journey would begin!

Ghost stories are always part of the night, and bound to send a shiver up children's spines. My father-in-law loved to tell the story of the Banshee. He was convinced that he had heard the howl of the Banshee years earlier, upon the death of a friend, and he told that tale so convincingly that many of us could swear that we, too, could hear the Banshee's wail.

But it was the Bonfire that always proved to be central to an Irish Halloween. For months, the local kids gather together anything that might burn - tires, old pallets, beds and bedding - and pile them in the center of a local park. On Halloween night, those mountainous piles of jetsom are transformed into huge burning pyres of light, diffusing the darkness of the night for hours on end.

At the same time, fireworks are lit, lighting the skies with rocket's red glare. And - if you're lucky - a full Halloween moon floats above it all, casting the Irish world in a glow of creepy glory.

Today, Halloween has changed a bit. Irish kids trick or treat, just like they do in the States. Bonfires and fireworks aren't as commonplace due to Global Warming legislation. But many still tell ghost stories, and usher in the new year of light with a fragrant Brack that sends people away toward new journeys.

And somewhere, I suspect that the Old Irish are involved in a ghostly celebration of Samhain, perhaps drinking a mug of Poitin in order to celebrate the end of an old year, and the beginning of the new.

For more stories on living in Ireland, why not buy Tom Richards' book, A Survivor's Guide to Living in Ireland? Click for more details!

Why There's No Bad Guy in Ireland

See the family. See Tom. See Mom and Dad and sister Cindy. It's 1961 Seattle, and this photo is taken only a few miles from the Boeing Aircraft plant. Back in those days, and as a first grader in nearby St Philomena's School, we'd get lessons in hiding under desks as Russian missiles rained down. On the television, and every now and then, the broadcasters would test their Civil Defense System. I can still see the grainy black and white photo of the CD logo in the back of my mind, and the announcer saying, "This is only a test of the Emergency Broadcast System!"

Then, a wild whistle would emanate from the old speakers on our RCA set. Later on, and a bit older, I realized that it sounded distinctly like the whistle of a melting phone in the Cold War film "Fail Safe" - the sound that the phone made as it was melted in the heat of a thermo nuclear explosion. Ah the joys of childhood!

Growing up in Cold War America had its pluses of course. We could make fun of Kruzchav and the Russians and get away with it. Hollywood was constantly coming out with new films that scared us all silly (think of those great 'B' movies: "Invaders from Mars" and "The Day the Earth Stood Still".) Both films pitted good guys against bad - even Red against Blue (Invaders from Mars). But occasionally, one wondered who was the bad guy and who was the good (the Robot Gort in The Day the Earth Stood Still was no bad guy, let me tell you. He had a cool heat ray, didn't he?) And living in Seattle as we did, we occasionally got to see some of the very latest 1960s Western technology (think the Space Needle and the MonoRail - those beat the Rooskie stuff any day.)

In the United States in those days, we knew who the bad guys were, and we had Superman to help us out when those bad guys dared to show up.

In Ireland back then, they had no such bad guy to pick fun at. There were the English, of course. Seems to me that there had always been the English. Four hundred years of servitude makes one think that the Irish would have thrown them out sooner than they did, but that didn't happen until the 1920s. And even then, the Irish were divided in a bloody Civil War over the whole mess. For hundreds of years, the Irish were trapped in a country occupied by an oppressor who didn't do a whole lot for the society. The English banned Mass and the Irish language. They shipped hundreds off to penal servitude - or worse! - emigration to Australia. The English did their best to transform this little country and its people into a jewel in the British Crown. All that happened, of course, was a feeling of resentment that eventually gave vent to war.

And when the Irish at last threw off the yoke of the oppressor, the government did their level best to isolate the country from the rest of the world. Censorship limited imports. The Catholic Church limited free thinking. Films such as "The Man from Aran" portrayed the typical Irishman as a solitary man, alone against the elements, but winning none-the-less. The average Irishman, suffering the slings and arrows of a stagnant economy in those early days of the Republic, must have laughed at the idea of an Irish "Superman", knowing that they didn't have a hero to save them. Only Eamon De Valera, and all he was doing was refusing to mix with the rest of the world which caused only more hardship on an already marginalised economy and people.

Of course, Ireland and the Irish are no longer isolated. Even at the height of recession, this country has one of the highest per capita export industries in the world.

And yet, one thing the country still doesn't have: bad guys to poke fun at and a Superman to save the country. I guess Ireland would have had to go through a Cold War to experience those. Who knows? At the rate the country is going, we may experience a Cold War yet.

Remembering 9/11 - The Comfort of the Irish

I'm old enough that I remember when and where I was when John Kennedy was assassinated. I was sitting in my 2nd grade classroom at St Philomena's primary school in Des Moines, Washington. That's just south of SeaTac airport, for those of you with a geographic disposition. One of those tiny Tanoy speakers came on (every classroom had one) and the Reverend Mother told us what had happened. I was too young to understand, of course. But I do remember our teacher, Sister Raymond Francis, telling us to get down on our knees and say a prayer for the fallen president. I remember my knees hitting the hard linoleum floor, and for 60 seconds or so, thirty 2nd Graders said our Lord's Prayers and Hail Mary's, and when we were done we went back to work. We couldn't understand why the adults that cared for us were crying. Nor could I understand why, when I got home, my mother was wiping tears from her eyes. Now, of course, I understand.

Yesterday was the 8th Anniversary of the attack on the World Trade Center. Like my memory of Kennedy, I'll always remember where I was on that day. I was at work. My wife rang me, telling me that it had been reported that a light plane had hit one of the Towers. I turned on the set that we had at the office, and by God she was right: smoke was pouring out of the building. I should explain that I used to fly light planes, and couldn't understand how any pilot would be stupid enough to hit a New York skyscraper. I put it out of my mind, then climbed in the car to visit a client.

A couple of hours later, I was sitting in a board room discussing something that I now forget with clients who were also friends. The door flew open. A secretary announced that one of the towers had collapsed. "One of them?" I thought. We rushed to a television. CNN was broadcasting live. I got there just in time to see the second tower collapse. And like everyone else in the world I suddenly realized what was going on: my homeland was under attack. People were dead. Innocent people. And in that moment I broke down and started to cry uncontrollably. The client that I was visiting - Teresa Maguire, and I'll never forget what she did for me - took me in her arms and let me sob, then led me back to the board room for a moment of quiet.

In that moment, the professional nature of our relationship changed. We were simply human beings who didn't understand too much.

Over the course of the next few days, I received constant visits by Irish neighbors and friends. All of them wanted to commiserate. To sympathize. To extend their heartfelt feelings of loss and support to me. They did so because I was their friend. I think they also did so because I was American, and in comforting me, they also extended comfort to the land of my birth.

Ireland has always had a special relationship with the United States. For hundreds of years, my homeland has extended comfort to the Irish. Thousands of Irish took the words carved on the Statue of Liberty to heart: they immigrated to the States: the tired, the restless, the poor, looking for the Light of freedom that was shining so brightly on that open door.

On September 11 2001 the Irish returned the favor, at least to this one Yank so far from home. They extended to me hearts of comfort and kindness; warmth and helpfulness. They let my wet tears of sorrow flow onto their comforting and broad shoulders.

I'll always remember where I was on September 11th. I was in Ireland. With a people who's hearts have an infinite capacity to comfort.

The End of Free Higher Education in Ireland?

Meet my son Jonathan. Taken only yesterday, Jonathan is pictured having just received his BA in Irish and media studies (don't ask me where his penchant for Irish came from - certainly not from me or his mother!)

A quick parental Brag List (I just finished putting my 3 kids through college - 9 consecutive years in all - so figure I'm entitled): Jonathan worked his arse off. He ended up at the top of his class at NUIM (National University of Ireland, Maynooth), and by doing so, also won the John Hume Scholarship - which gives him a free ride for four years toward his PhD in Irish Studies. I am justly proud of the hard work of my son. And also so very pleased with the quality of the education that he received.

Now all of that is wonderful. But what's more wonderful is this: during his undergraduate years, Jonathan (as well as his sisters) benefitted from an outstanding, and almost 'free', university education. Of course, I footed the bill for each of them. The cost? Approximately $12,000 per annum. That's right, twelve grand. And that includes everything: tuition, room and board, books, even the occasional pint.

Comparing Costs of an Irish Education with the US

I compare this cost to that of a fellow that I met in Boston a couple of months ago. About my age and with a son in one of the SUNY schools, this poor fellow and I were sitting in his office, comparing notes. It had been an age since I'd received firm figures regarding the cost of university in the States. So naturally, our talk turned to just that topic:

Me: "Ah, it's so nice to think that I'm almost done putting the kids through college. I think I'll buy a yacht!"

Him: "Don't rub it in. I still have 3 more years to go."

Me (now deadly curious): "Ah, Larry, would you mind if I ask?.... What does it cost to send your kid to SUNY?"

His eyes darkened. His brow furrowed. His face grew pasty white.

Him: "Funny you should ask. I just got the bill for the next Semester." He reached behind him and extracted a fairly standard looking statement. Written in nice lettering, it stated, DUE NOW. My eyes quickly scanned a detailed, line-itemed list of fees: tuition, room and board, frizbee ("We'll see about that!" he told me). And finally, I made it to the bottom line:

$24,347.67

Me (choking): "This is for a semester?"

Him: "Ayyyy!!!!"

A year of college at what truly is a great university costs poor Larry about fifty thousand bucks. On the other hand, a year at NUIM - which is a great university, let me tell you - is less than a third of that.

Larry glanced at me. "What does it cost to send your son to college?" he asked. I told him. The poor man had to run to the Men's Room, he was so struck with jealousy.

However, Larry and other jealous parents can take heart! Because, and due to the collapse of the Irish economy, it looks like Irish education will be almost as expensive as in the States!

Coming Soon! Increased Costs for Irish Education

The quality of Irish education, and its relative cheapness, has long contributed to the growth of Ireland's economy. Back in the early 80s, when Ireland was mired in an economic morass, even the IDA - the Irish Development Authority, those charged with bringing investment to Ireland - used the quality of Ireland's bright young kids as a sort of Corporate Mission statement. That is to say, Come to Ireland, and you're going to be able to tap into some of the brightest, and most highly educated young people in the world.

And that statement was - and still is - true. Ireland's system of higher education is second to none. For years, the government has seen fit to invest heavily in this area. And by so doing, they have also invested in the futures of its young people and therefore in Ireland, itself.

What's more, higher education - as illustrated above - was (and still is, for now anyway) affordable. If you wanted to go to college, and if you could make the grade, then you could afford it.

While I am NOT a socialist by any stretch of the imagination (okay, time that I admitted it: I'm a registered Republican. Mind you, I voted Obama), I have seen the benefits of almost free higher education at close hand. And the benefits are enormous. Higher learning has provided younger people with skills and knowledge that they might not have been able to afford elsewhere. And that investment paid off handsomely during the Celtic Tiger years.

But now? Now that the economy has tanked, the government is thinking of pulling the plug on free higher education. This year's budget (scheduled to be announced in December, or so I remember) will institute a real schedule of tuition charges. Invariably, many will no longer be able to attend college. And that will rob Ireland of a generation or so of talent and skills.

"But," you might ask, "So what? I had to pay tuition. Why not these kids?" I had to pay tuition too, back in the States. The difference was - and still is - that a wide range of loans and grants are available to US college-bound kids. That's not the case over here. Federal loans are non-existent. Grants are as scarce as pond lillies in the Sahara (my son won one of the only Grants available in the country, God bless him). Private loans from banks are expensive.

Which means, of course, that when this new tuition comes in, kids here considering college will be faced with the same sort of decisions that many US kids face: either forget about going to college at all, or know that you're going to have a six figure loan balance upon graduation.

Maybe that's okay. I don't know. But I do know this: free (or almost free) higher education was one of the significant benefits that attracted me to Ireland in the first place. If that disappears, it will make Ireland just that much less attractive. To me, and a whole lot of other people.

And that, unfortunately, is a great shame.

For more stories on living in Ireland, why not buy Tom Richards' book A Survivor's Guide to Living in Ireland? Just click on that link!

The Irish Diaspora - a Global Network

I was standing in a Boston cemetery only a week ago. Around me rose the spectre of Irish immigrants. Post-famine headstones marked the successful - or not so successful - lives of Irish men and women who made their way to the United States in the hope of a new future. There, they struggled with millions of other immigrants to transform America into a land of opportunity.

Over the years, I've stood in so many graveyards throughout the United States and Canada and looked down at the remains of Irish immigrants who made their way to America in pursuit of their dreams. During the famine years, thousands of hope-filled Irish paid their way across the Atlantic in search of economic and political freedom. When they arrived in the States, they worked hard to make their dreams come true. And it was a struggle. Is it any wonder, then, that they stuck to their own?

Irish neighborhoods (and sometimes tenements) sprung up in all the major cities. Within those communities Irish traditions of family and loyalty were cultivated and reinforced. Favors were exchanged. Political power established. Over the years, the influence of the Irish swept through America - sometimes welcome, sometimes not. This network of power and influence protected protected the Irish. And the Irish Diaspora (a phrase coined by Irish President Mary Robinson) stretches throughout the world.

If you are considering a move to Ireland, you might see how you can turn the power and knowledge of the Diaspora to your advantage.
The Help of the Irish
It is no secret that millions of Irish descendents live in the United States alone. Many of these people have friends, colleagues, and relatives living in Ireland. As importantly, many of these people may belong to Irish-related organizations based in the States. In turn, these outfits may have contact information in Ireland.

If you're considering moving to Ireland, why not see if you can network through this existing network that is the Irish Diaspora? Research local Irish clubs and societies that might exist in your area. Contact them. Ask for their help: do they have contacts in Ireland? Are there people in their organization that you might talk to? Can they provide additional contacts in Ireland that could lead to a job or more information over here?

If you're currently living in the US but have a passion to live in Ireland, why not start your journey using the closest - and therefore easiest to access - source of information? Your local Irish organization. By doing so, you will not only make some good friends, but you may be able to network through them and onward to Ireland itself.

Thoughout history, the Irish worked hard to make their dreams come true. With a little work, you too may be able to move here too.

For additional stories on living and surviving in Ireland, and for a copy of Tom's book on the subject, to to A Survivor's Guide to Living in Ireland.