UNIVERSITY ISSUE 1
12TH SEPTEMBER 2022
EXPRESS
VOLUME 26
UCCExpress.ie
SEX IS NOT A BAD WORD
PAGE 21
THE SOARING COST OF MERELY EXISTING WRITES JAMES KEMMY James Kemmy discusses the global context and local consequences of our volatile economic state- and the effects it is having on Irish students
The cost of living catastrophe that is currently gripping our society and consuming our everyday reality is unprecedented in scale, triggering the greatest overall decline in Western living standards since the 1970s. Several dominant factors and global headwinds are responsible for producing this situation, most notably demand-pull inflation, the economic fallout from the Russian war in Ukraine (which has drastically altered the dynamics of the energy and oil markets), and stagnant commercial growth in the wake of Covid-19. The culmination of these forces has contributed to chronic macroeconomic instabilities that appear to be redefining, or at least questioning, the purpose of government in society. Meanwhile, due to the interconnected nature of our globalised modern economy, such problems are internationally contagious and omnipresent, disregarding borders and traditional state defences. Manifesting in the form of food and fuel price increases, calamity in the energy sector, and pay cuts for workers, living costs are rising hazardously, with inflation approximately 10% right now and expected by Irish economists to elevate even further next year, despite a slight drop in recent weeks. Meanwhile, inflation in the UK could rise to 18.6% by next January according to stark predictions from major investment bank Citigroup- a brutal illustration of post-Brexit economic reality and the weakened ability to absorb economic shocks. The scale of the current economic predicament is such that the past twelve months have seen the highest successive levels of inflation since 1984. This has translated into a
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situation whereby the majority of people, not just those on the very lowest incomes, are experiencing hardship. For instance, a recent survey of 2,300 people conducted by the Irish Mirror found 64% identifying themselves as being in relative or in-work poverty, with half of the remaining 36% classifying themselves as at risk of falling into such poverty. Similarly, 80% of Irish motorists are now being adversely affected by surging fuel prices according to the AA, with the average cost to fill a tank from empty now standing at approximately €108. Again, figures such as these portray the vast reach and pervasiveness of this type of financial turmoil, with its associated strain on middle Ireland now near universal. With energy bills doubling and possibly tripling following the autumn months, the devastating weaponization of Russia’s gas supply to Europe is being felt now more than ever as increasing cohorts of society are forced to choose between heating and eating. Additionally, food inflation has skyrocketed in several areas, including staples such as dairy, fish and common meats, with recent reports from the Central Statistics Office illustrating 10% price rises for the majority of everyday items and staggering 45% rises in certain cases such as chicken and other poultry goods. According to The Society of St Vincent de Paul, an extra 20% of people have sought charity support already this year compared to last year’s previous record number. Social Justice Ireland meanwhile have expressed concern that we will soon see “post-2008 levels of debt and struggle”, whereby economically vulnerable people will be pushed towards the use of extortionate loan sharks and black-market money lenders as they struggle to stay afloat. These developments come on top of
a national housing crisis, a profound societal issue which is now chronic in scale and severity. Property website Daft.ie’s most recent quarterly report provided stark findings, most notably identifying that there are now just 716 rental properties available nationwide. For context, this amounts to a 97% fall in rental availability since 2009 as noted in the Irish Times, meaning that for every one hundred homes on the market thirteen years ago, there are now just three. Unsurprisingly, this figure represents an all-time low and a drop from last year’s number of 2,500 available rentals. There is now broad consensus among the relevant stakeholderstenants, landlords, activists, and economists- that the Irish rental market has a debilitating overreliance on the private sector for the supply of properties. Recent commentary for RTÉ news from Trinity College Dublin economics professor, Ronan Lyons, argues that “shocking” rent increases as a consequence of market shortages can “only be addressed by significantly increased supply.” In the same report meanwhile, head of policy at the Simon Community,
Wayne Stanley, has expressed concern at the normalisation of inaction regarding rental supply whereby the collapse of social housing construction in the early 2000s has led to an increasingly prevalent attitude that the housing issue is now “intractable”- involving generational complexities and remedial barriers, somewhat like healthcare. On a more student-specific level, all of these developments combine to present a difficult picture. This spike in the cost of living must now be endured alongside hefty accommodation costs and tuition fees- now the single highest in the EU for domestic students. While there is talk of a potential reduction in the student contribution charge, it is uncertain whether this will alleviate much of the financial burden on struggling students, with the Union of Students in Ireland (USI) calling for a €1,000 reduction now with the long-term view of fee abolition and universalisation. According to Trinity College Dublin Provost, Dr Linda Doyle, this
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