Another year over - but is there worse to come?

The last couple of weeks has seen us all focus determinedly on Christmas. We spent as little as we could, and partied as best as we could. What else can you do when you don"t know what the future is going to bring - but you"re sure it"s not going to be pleasant? The past twelve months has changed this country drastically. A year ago, we were still confident, enjoying our wealth, believing things would only keep getting better. Now, there"s a huge feeling of uncertainty about. Many people are not actually any worse off - but the difference is that the fear of unemployment is now a very real fear. Businesses in Westmeath - and indeed throughout the 26 counties - have been hit by a double whammy this year. All are suffering from the fact that there is fewer money about - and they"re suffering too over the fact that the UK slashed its interest rates, just as the pound and euro neared parity, meaning shoppers have been leaving in droves to shop across the border in Northern Ireland. What is angering many people however, is the smugness of so many of the commentators. There are comments about our 'greed', our conspicuous consumption, and indeed, as one newspaper columnist put it this week our 'fur coat and no knickers' lifestyle. All, unfair. Most Irish people have houses with huge mortgages not because they were buying flash mansions on rolling acres of countryside: they have huge mortgages because that"s what houses came to cost. There was little the man or the woman in the street could do but get into massive debt if they wanted to buy a home. And yes, people splashed out. But in towns like Mullingar what did that splashing out mean? Foreign travel: sure. But why not? It was cheap, and an opportunity for people to finally see something of the world, and ocasionally enjoy a spell in the sunshine. And unlike the staff in FÁS who did that sort of travel in first class compartments and cabins paid for with taxpayers" money, most of the ordinary men and women in this country were travelling with Ryanair, or on charters. What else did the money go on? New cars? Well, again, it"s not the fault of the motorist that cars in this country are so much more expensive than they are elsewhere in the EU, and most particularly, Britain, thanks to the VRT that over the course of the boom years sent thousands into Government coffers. Expensive handbags and shoes? Not that many in Athlone were spending hundreds on handbags and shoes - no matter how expensive the goods were that were displayed in the fashion spreads in the Dublin newspapers. Much of the money that Irish people now owe went on the basics of life, and just a few luxuries. The money went on housing, transport, food and clothing. Commentators may laugh at how we spent: but hey, we"re not spending now, and who"s laughing? At least when we were doing our bit of consumerist consumption, we were keeping money in circulation. Now, no-one"s buying - or they"re not buying here - and jobs are going by the wall. The signs are that 2009 is going to be an even tougher year. There will be more jobs lost; more firms will close; the Government"s tax take will fall further, and we have already seen evidence of the sort of cutbacks - including in areas like health and education - that result when the money stops rolling in in taxes. We"ve watched as the Government has tried to kick-start the banking system here using taxpayers" money; and in fairness, we"ve watched the governments of other countries attempt likewise. So far, banking is still not back to normal. At this stage, with a world in financial crisis, it"s difficult to see when banks will start lending, and when growth can begin again. While we need money in circulation, it would be a foolish person who didn"t rein in their spending this year. We"ve had some months of hard knocks, and the chance to adjust our lifestyles - but it"s likely there"s much more of the same to follow.