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Recession News I


Posted by | Evil Kristos | February 20, 2009 | 1 Comment

I’ve been quiet recently and for a reason. I still cannot believe what is going on out there. Ireland was hit by the global crisis and unfortunately it was hit harder than most other countries in Europe. The unemployment figures are rising at an alarming speed and the bad news never seem to end. It is almost depressing to watch the news these days and it does start to affect people and the whole country.

Everyone seems to think that they should start saving although most people effectively have more money than they did last year. Wages in most places remained the same while prices seem to have dropped. Because the people don’t spend money even healthy businesses start to struggle. At this stage even I am getting concerned. I see the risk of a domino effect where the whole system collapses.

To set an example I stopped shopping online and now go in to proper offline shops. It’s a strange sensation. I haven’t done this in ages because I am lazy and I hate shopping. You actually have to talk to people in order to purchase something and they expect you to pay with real money. It’s almost like … let me think of an example … the stone ages may be or when you go to a pub. It’s cash and carry really. Weird!

I’m realling only doing this to set a good example. It is time to do something. They way I see it the whole country would be screwed otherwise.

It obviously doesn’t help that a number of the big companies use the current climate as an excuse to reduce staff or pull out of Ireland all together. I am quite upset about this and I’ll tell you why. One example – which was pre-recession – is IBM. They took over the Xerox operation in Dublin and then sacked almost all their staff. Why did they take over the business? Well they shut down the Dublin operation with the loss of almost a thousand jobs but subsequently (and this was the plan all along) opened a new facility in Bulgaria. Rumour has that the Dublin staff was offered a position there to a “slightly” reduced wage according to the local standards. I’m not sure if this is true but I was told that they got offered 600 Euro per annum and there is no typo in that figure: six hundred per year.

A more recent example is DELL which shut down their plant in Limerick axing 1900 jobs. For all we know the plant in Limerick was a profitable operation and delivered outstanding quality. The latter is DELL’s trade mark and important since their computers are not exactly cheap. We also know that people didn’t just suddenly stop buying computers so we can safely assume that DELL pulled out here to build a plant somewhere else and preferably in a low cost country.

The truth behind all this bad news is that companies use the banking crisis as an excuse to cut wages and costs. They are trying to get rid off more expensive operations and set them up elsewhere under more preferable conditions.

Reducing costs never resulted in a better price for consumers but often enough outsourcing affected the quality of a product or service. This means only one thing; the company is making more money and the consumer as usual is the idiot. Well we got to teach them a lesson and this is how it works for me. I here and now promise that I will never again in my life buy a DELL computer and as far as I’m concerned they can go an f*** themselves. IBM are so utterly useless that I won’t even curse them. For all I know they are doomed anyways and will rot in hell until the end of days.

Comments

One Response to “Recession News I”

  1. Chergiree
    February 24th, 2009 @ 09:06

    Thank you!

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