Showing posts with label taxation. Show all posts
Showing posts with label taxation. Show all posts

Tuesday, 9 June 2009

Eight out Ten (Unemployed) Cats...

David Jones wonders what it is the unemployed most miss about working.

It might seem like a stupid question, but what do people miss most when they’ve no job?

The obvious answer is money. The average annual wage in Ireland is €32,000 before tax. After tax that gives a take home pay of about €480 a week. The dole on the other hand is €204. Losing your job therefore costs the average single man or woman about €276 each week. That’s means they are €14,352 worse off in a full year. That’s a considerable sum of money by anyone’s standards. It certainly puts a dent in holiday plans, socialising, and buying things like cars, furniture and so on.

The minimum wage in Ireland is currently €8.65 an hour. After tax that works out at about €7.40 for a single worker. Based on a 39 hour week, the dole works out at €5.23 an hour. A single unemployed person is therefore €2.17 an hour worse off than if he or she was working for the minimum wage. So if you’re single and unemployed, you’re €85 worse off each week compared to what you would be if you were working for the minimum wage.

Put another way around, the minimum wager’s real pay for getting up every morning and going to work is €2.17 an hour. At the end of a hard week’s work, he or she prospers to the tune of just €84 compared to staying at home and watching TV. Not much of an incentive really is it?

Of course, for higher earners things are very different. Life on the dole can represent a dramatic, and traumatic, decline in living standards. People may be forced to move house, sell the car, take the children out of school or college, or downsize in whatever way they see fit.

Apart from money, what else do the unemployed most miss? Company is the obvious answer. You’re at work 8 hours a day, 5 days a week. If you stop to think about it, you probably spend more time with your work mates than you do with your family. It’s a big wrench to suddenly find yourself home on your own.

Being unemployed can be a lonely and boring experience. Having time on your hands is all very well if you’ve lots of things to do and people to share it with. But what if you’ve neither? What do you do all day if your partner’s at work, if the kids are at school, if most of your friends are working? What about all the unemployed people who are living alone, or those living in rural areas? What do they do? No wonder depression is such a common problem amongst the jobless.

The winters are harder, of course. Cold, wet, miserable days are ten times worse when you’re on your own. Keeping warm is also expensive. Life on the dole is definitely far better in the summer; there’s a million more things to do when the sun shines.

It’s also often said that being without a job isn’t half so bad at weekends when most people are at home, as it is during the week. It’s during the week days that are worse. It’s as though your psyche doesn’t expect you to be at work on a Saturday or Sunday; but it’s really hard Monday to Friday. It’s when everyone else is at work that you really miss it.

There are other things too that you miss about not being at work. Depending on the type of job you had, people claim to miss mental stimulation, challenge, travel, even physical activity. We might moan about our jobs when we have them, but job interest really is a big positive feature in most of our lives. It’s certainly something we miss when it’s taken away from us.

A sense of purpose and a sense of self-worth are the other things most commonly missed. For most of us, our job defines who we are. One of the first questions we ask when we meet somebody new is, ‘What do you do?’ To some extent the answer dictates our standing in society. “I’m a pilot, a teacher, a nurse, a banker, a bookkeeper, a lorry driver, a chef or a builder seems so much better than “I’m unemployed”. Being without work has traditionally cast us as a second class citizen. It’s a stigma that still associated with being unemployed.

What else do you miss about having no job? The company car, access to the internet, the odd free phone call, the office canteen, flirting with the opposite sex, Friday night in the pub, the craic, the gossip, the jokes, the Christmas party?

I don’t know if it’s still the case, but it certainly was true once that most romances began at work. Certainly a lot of illicit affairs also happen between work colleagues. What’s going to happen now more and more of us are on the dole queue? Somehow I don’t see us meeting our future partner across a crowded Social Welfare or FAS office, but maybe I’m wrong.

Apart from money, socialising and self esteem are the big losers if you’re unlucky enough to become unemployed. I don’t think TV and radio programmers have yet realised there’s a new breed of unemployed people now staying at home. The new unemployed want a different sort of progamme to the traditional nonsense that fills the schedules from 9am to 5pm. Maybe that’s why the internet is taking over more and more of our leisure time?

That’s certainly food for thought for daytime TV and radio producers. They’d better wise up fast before they, like the rest of us, join the ever lengthening dole queues.

Copyright © David Jones 2009

Tuesday, 2 June 2009

Cometh the hour, cometh the man...

History is full of great men arriving at times of crisis; Churchill, de Valera, Roosevelt, Ghandi, Mandela. Statesmen who are immortalised by the leadership they brought at watershed moments in their nation’s history.

Ireland stands today, at such a watershed moment. Our economy is on the brink of collapse; civil unrest could become a real possibility if things don’t improve. Every passing day seems to bring worse and worse news. We seem to be stumbling from one crisis to the next; our leaders openly acknowledge they don’t really know the extent of our problems.

We’re a small country, 4 million people or thereabouts. By the end of the year up to half a million of us could be without work. That’s unprecedented in modern times. The Government is borrowing billions of Euros; not to invest in rebuilding the country, but simply to balance the books. That we are living way above our means is indisputable.

A ‘budget’ is due next week. It is expected to include savage cuts in Government spending and a significant increase in taxation.

What happens if the ‘budget’ doesn’t work? What if things don’t improve? Supposing things get worse? What then?

We have to be realistic; things are going to be tough. We’re in for a rough time; maybe a very rough time. There will be setbacks, changes in direction, moments of crisis that will really test the mettle of the Government and the nation.

At times like this, we need leadership. A leader is someone who can inspire us, who can pull us through the hard times; someone who knows where they are going, who has a goal, an objective. A leader is also someone we can believe in, someone we trust and support; someone we will follow, no matter what.

Therein lies our problem; we don’t have that leader. We have a Government and a Taoiseach that are hopelessly unpopular. Public confidence in our leaders is at an all time low. Whether the two Brians and the rest of the cabinet have the capability to solve our problems, or not, is irrelevant. What matters is they don’t have our confidence.

Whether it is a general leading his troops into battle, a captain leading his team on the pitch, or a Prime Minister leading his country at a time of crisis; to succeed in any campaign, the leader must command both authority and respect. The troops, the players, the country must have faith and confidence in their leader. If they don’t then he has to go. It’s as simple as that.

We have a Taoiseach who got there by default. He has no mandate to lead the country in the way he would have if he led his party to victory in a general election. We have a Government we have no faith in.

At moments of crisis thoughout history, populations have demonstrated a willingness to accept significant sacrifice for the common cause. What we need now is a ‘crisis government’, one that can lead us out of the storm. To succeed, such a government must have public opinion on its side. If it is unable to inspire public confidence, the crisis will become a disaster.

It is ironic to hear the clamour for the boards of the banks to resign. They created the banking crisis, so the argument goes, how can they be trusted to solve it. So too the Government. Fianna Fail has been in government for 12 years. Brian Cowan has been a minister for most of that time. He was Finance Minister before he became Taoiseach.

President Obama was elected on a mandate of change. It is time now for change in Ireland. We urgently need a leader we can believe in. We need a Churchill; we need a new De Valera.

Step aside Mr Cowan; it’s time for a new man and a new Government to lead Ireland now.

Copyright © David Jones 2009

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