Presentation Dublin Economic Workshop Cork October 2014

1. The Media and Ireland’s
Economic Crisis
Julien Mercille
University College Dublin

2. Political economy of the Irish
media
• (1) Corporate and government links
– Boards of Directors; Shareholders; Funding;
etc.
• (2) Advertising pressures
• (3) ‘Experts’

3. Housing bubble
• Identifiable
• Price/Rent ratio, Price/Income ratio
• Dean Baker in the US, The Economist
worldwide

5. Housing bubble (non) coverage
• Many articles pre-2008 mention bubble but
say there isn’t one
• David McWilliams and Morgan Kelly
drowned in a sea of 40,000 articles on the
economy (IT, 2000-2007)
• Cheerleaders: The Best Is Yet To Come
(2007, Marc Coleman)

6. Marc Coleman: Greatest Hits
• ‘Far from collapsing, our economy and
property prices will do more than hold up’
• Those who warn of a bubble are ‘careless
talkers’ and ‘talking nonsense’
• ‘Far from an economic storm—or a
property shock—Ireland’s economy is set to
rock and roll into the century’
• ‘Far from collapsing, our economy and
property prices will do more than hold up’

7. Marc Coleman: Greatest Hits
• ‘Nothing dangerous is in prospect’ for the
housing market
• ‘House prices set for soft landing’
• ‘Ryanair effect’ will ensure a strong
property market
• ‘Legalisation of contraception a “major
factor” in house price rise’

8. Austerity
• Fiscal consolidation is expansionary,
especially if spending cuts
• ‘History says cut when the economy is
weak’ is ‘the best way out of recession’
(Dan O’Brien, IT, 2010)
• But IMF: contractionary, especially if all
countries do it at the same time

9. Significant support for fiscal
consolidation
• Irish Times’ education campaign
• 58% for, 10% against, 32% neutral
• Authorship: 57% financial
sector/economists; 20% FG/FF politicians;
9% academics; 7% progressive
organisation; 3% trade union

10. Significant support for fiscal
consolidation
• Irish Times’ education campaign
• 58% for, 10% against, 32% neutral
• Authorship: 57% financial
sector/economists; 20% FG/FF politicians;
9% academics; 7% progressive
organisation; 3% trade union