Tuesday, February 18, 2014

Black Markets in Ireland

I am between a rock and a hard place...  I need freedom, but there are no English speaking places that extol freedom.  And I am 2nd-language proof....

One would think Ireland, of all places, would love freedom.  But here is the problem with gaining independence with violence...  you simply replace one set of oppressors with another set.

Here is a newspaper article, with my commentary:

The black economy is posing a serious threat to jobs and businesses in Galway, as increasing numbers of people opt for ‘cheap’ products and services, the Chamber of Commerce has warned.

***Sigh...  voluntary exchange is called “black” as in negative, but in business “in the black” is positive...  Let’s agree the black market is a very good thing...***

And a conference on the black market held in the city yesterday heard legit businesses here are finding it “next to impossible” to compete with illegal operators.

***The point of legitimacy is to have other people provide protection for your operations.  How is it that people who DO NOT have other people provide for their protection thrive, and those who require protection do not?

Perhaps there is something fundamentlaly wrong with being “legit”.***

In the midst of a Revenue crackdown in the city on tax-dodging traders, tradespeople, retailers and landlords, the Chamber said that “there is always a loser somewhere”.

***Yes, all policies have winners and losers.  This is true whether the English are cracking down on Irish, or Irish are cracking down on Irish.***

Chief Executive Michael Coyle said there is a lot of anecdotal evidence on a local and national scale of black marketeers ‘cashing in’ on the economic downturn.

***People who can thrive in an economic downturn are to be crushed?  Is that not exactly backwards? Ireland had thrived vis a vis the rest of the EU due to lower taxes and regulations.  Why was that a good idea then, but not now? Why do governments extend tax-exempt and regulation-exempt status to big business to foster growth, but never small business.***

“In terms of black market activity, we hear about services such as painting and decorating, builders, electrical work and so on, moreso than a specific commodity, such as cigarettes, where phenomenal numbers are being seized at ports. The numbers there are truly mind-boggling.

***Apparently people are exercising preferences.  Freedom starves the rent-seekers.  But rent-seekers have violence. And the "black marketers" can thrive in spite of have "phenomenal numbers" of their goods seized.***

“There are huge risks associated with the black market, not least for the people using service. If somebody is up a ladder carrying out work on your house, and they’re not properly insured and have an accident, that will have serious implications for you.

***You mean homeowners insurance, which is cheaper than workers compensation?  Get the state out of social services, and watch the economy grow.***

“The job may be cheaper, but the risks are high, the quality of work may not be there, there’ll be no certification which will have an impact in terms of home insurance. The cheap job might be the dearest in the end.

*** Do they think no one makes these calculations when contracting?***

“Legitimate businesses employ people, apprentices and so on. If the job is being done ‘under the counter’, it’s not a level playing field, and jobs are at risk,” said Mr Coyle.

***Whose jobs?  Obviously employment in the black market is commensurate with the size of the black market. The employees of people who cannot operate in a free market are at risk?  Those employees need to seek out employers who can operate in a free market. How does running people gainfully employed out of work save jobs? ***

He said there are massive Revenue implications from the black market trade.

***Capital R revenue, as in rent-seeking sinecures.***

Meanwhile, a panel discussion on the black market held in Galway yesterday by accountancy firm Grant Thornton heard the black market in Ireland costs the economy €1.5 billion each year.

*** LOL, Grant Thornton gains rents by people forced to fill out desultory tax forms...  who else would term savings to an economy of 1.5 billion euros a “cost”?***

Brendan Foster of Grant Thornton said: “Illicit trade is costing the Exchequer hundreds of millions of euro at a time when every cent of tax revenue is vital to the recovery of the country.

***How does wasting money on rent-seekers recover an economy?***

“We work closely with local businesses in Galway, some of whom are finding it next to impossible to compete against fraudulent goods being sold by organised crime gangs in the Western region.   These illegal actions must be stamped out to avoid further business closures and job losses,” said Mr Foster.

*** Failure to register is a civil offense, and since economies require many people, from there we leap to “criminal gangs.”  O dear! And if freedom were to gain in Ireland, the Grant Thornton people might have to go find work. ***

Galway West Fine Gael TD Seán Kyne told the conference that a report is to be published on black market trading in the coming weeks.

*** When violence is employed to gain "freedom", the result is worse than before, for now it is Irishmen play at being English.***

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