David McWilliams | |
---|---|
Born | 1966 (age 58–59) |
Education | Blackrock College |
Alma mater | |
Occupations | |
Spouse | Sian Smyth |
Children | 2 |
Website | davidmcwilliams |
David McWilliams (born 1966) is an Irish economist, writer, and journalist. Since 1999, he has been a broadcaster, writer, economic commentator and documentary-maker. He has written six books, The Pope's Children , The Generation Game, Follow the Money, The Good Room, Renaissance Nation, and Money: A Story of Humanity, and written regular columns for the Irish Times and Irish Independent.
McWilliams has a reputation for explaining economic ideas with memorable phrases or stock characters, most famously "breakfast roll man". [1] [2]
McWilliams was born in Dún Laoghaire in 1966 and was raised in Windsor Park, Monkstown, Dublin. His father worked in a chemical and paint factory. His Cork-born mother was a teacher. He is married to Sian Smyth, a former corporate lawyer, who is from near Belfast. They live in Dublin.
McWilliams attended Blackrock College in Dublin. He then graduated from Trinity College Dublin, with a degree in economics (1988). His Masters in economics is from the College of Europe, Belgium (1989).
Between 1990 and 1993 he worked as an economist at the Central Bank of Ireland, a period which covered German reunification, the Maastricht Treaty, Bertie Ahern's term as Minister for Finance and Black Wednesday. Watching these phenomena unfold from the perspective of a Central Bank official shaped his opinions, and these events would be revisited in his writings, especially the triangular relationship between access to credit in Ireland, the retirement funds of an ageing German workforce, and European monetary policy. [3] [4]
McWilliams moved to London to work at UBS as a senior European economist and head of Emerging Markets research for Banque Nationale de Paris. [5] He was one of the economists at the time credited with coining or popularising the phrase "Celtic Tiger" in an analysis that compared the Republic of Ireland to the Tiger economies of Asia, predicting threefold growth per annum in the Irish market in the years 1995–2000. [6] He credited what he described as "an economic miracle" to spending cuts by Charles Haughey's 1987 government, "which laid the foundations for the impressive growth in the 1990s". [7]
During this time he was identified as an outlier among economists interested in Ireland in warning that the housing market in the Republic was running a price bubble similar to that of the housing markets in Boston in the 1980s and Thailand in the early 1990s. In 1996 he predicted a recession by 2005, noting that EMU meant that Ireland would enjoy low interest rates tailored to European neighbours with far lower economic growth than Ireland. [8] In 1998 he specified that in the event of a world recession, Irish house prices would drop by 20%. [9] and predicted a crash by the year 2000. [5] While the Irish Independent described him as "alarmist" in relation to these comments in 1998, the same article also added that mainstream Irish economists who disagreed with him were overly complacent. [9]
From 1999 to 2002, he was an emerging markets strategist with a New York-based hedge fund, Rockwest Capital. [10]
In 2000 – the year he had previously predicted that the Celtic Tiger would end - [5] he warned of a "Hong Kong style property market collapse" in the not too distant future, noting that Ireland was experiencing labour shortages, rising asset prices and high borrowing (five times the then European rate and four times the then US rate). Brendan Keenan of the Irish Independent described him as "the best known critic of the Irish economy" at the time. [11] During 2001 Ireland experienced a foot and mouth outbreak which had an impact on the economy, with some commentators declaring the Celtic Tiger to be dead. However, when the impact to the economy turned out to be less negative than anticipated, his critics dismissed his analysis of the fragile Irish economy as alarmist.
Since returning to work in Ireland, he presented a current affairs programme called Agenda on TV3, a breakfast radio show on NewsTalk 106 from 2002 to 2004 and a topical afternoon discussion programme called The Big Bite on the television station RTÉ One. All these shows were cancelled after relatively short runs. [12] However, in 2005 McWilliams published his first book, The Pope's Children, which became a significant bestseller and firmly established his place as a household name in Ireland, [2] [1] well known enough to be referenced in the Ross O'Carroll-Kelly books [13] and imitated on the satire TV show Irish Pictorial Weekly .
In The Pope's Children, McWilliams applied ideas which he saw used with great effect in Bobos in Paradise: The New Upper Class and How They Got There by American conservative writer David Brooks [14] to Ireland, creating neologisms to describe certain economic actors as stock characters – HiCo and Breakfast Roll Man, for example. He wrote three more bestsellers: The Generation Game, Follow the Money and The Good Room.
Following the 2008 Financial Crisis, McWilliams was seen as having been finally proven right by many [15] and became a more prominent presence in the Irish media. He wrote and presented documentaries in Ireland and Australia, mostly on economics topics but also exploring the Republic of Ireland's relationship with Britain [16] and contributing to RTÉ's Ireland's Greatest series, arguing on behalf of President Mary Robinson. [17] In 2010, he staged "Outsiders" a part stand up, part discussion, part social observation at the Abbey Theatre, Dublin. [18] [19]
McWilliams hosted Leviathan: Political Cabaret, a live discussion, political cabaret and satire event which featured at the Electric Picnic festival every year from 2005 to 2013.
In 2010, McWilliams co-founded two annual events: the Dalkey Book Festival with his wife, Sian, [20] and Kilkenomics [21] a festival-style conference which combines economics with standup comedy.
McWilliams has worked with another way of looking at current events in economics using his Punk Economics Series of animated videos [22] published on YouTube and also uses animations, music and video in his online economics course Economics without Boundaries. [23]
McWilliams conceived The Global Irish Forum, an event modelled on the World Economic Forum in Switzerland [24] and inspired in part by Israel's social and economic ties to Jewish communities in trading partner nations (he has frequently referred to harnessing the power of a 'Global Tribe' ). [25] [26] It is an event where businesses and leaders, both at home and abroad can work together and contribute to Ireland's economic recovery, and to examine ways in which Ireland and its global community could develop a more strategic relationship with each other, particularly in the economic sector.
Following an appearance on a live episode of The Blindboy Podcast , McWilliams decided to launch his own weekly podcast in 2019. [27]
While he has refrained from publicly supporting any political party in Ireland, he hinted at running as an Independent in the 2011 Irish General Election and raised awareness of individual candidates such as Dylan Haskins, Evelyn Cawley [28] as well as Stephen Donnelly who would go on to become Health Minister with Fianna Fáil. [29] [30] He has also mentioned a belief in Schumpeterian economics. [31]
McWilliams had stated on multiple occasions in the 1990s that the circumstances were in place to create a housing bubble in Ireland, and had predicted a massive crash in the early 2000s which did not happen at that time; after Ireland recovered from the economic shock of 9/11 and the foot and mouth crisis, and his predictions were dismissed as alarmist, he expanded on his initial theory by describing Ireland's housing boom as a "confidence trick" by "an unholy alliance of bankers, landowners and a pliant political class" which would collapse resulting "in a generation in negative equity" [32] on RTÉ. McWilliams was one of a number of commentators criticised for talking down the economy and damaging consumer sentiment. [33] In 2008 and 2009, the Irish economy was especially exposed to the global economic downturn in a manner very similar to that predicted by McWilliams.
McWilliams was initially supportive of the bank guarantee of September 2008, describing Brian Lenihan's action as a "masterstroke" and claiming that by "coming up with a unique, Irish plan -- guaranteeing all deposits -- instead of importing a failed solution from abroad, he has instilled confidence in the Irish financial system." McWilliams even predicted that it would "obliterate[s] " the hedge funds who were short selling the Irish financial sector. [34] It subsequently emerged that McWilliams had advised Lenihan on this policy. [35]
Regarding the specific implementation of the bank guarantee, he explained in 2011 that his view was that it should have been rescinded (as originally envisaged) rather than prolonged, saying:
"Rescind the guarantee. It was due to expire last September and was always supposed to be temporary. This guarantee should not have been open-ended and all-encompassing. It should have copied the Swiss and Swedish model, where those countries lent the credibility of the state to the banks. Unfortunately, our Government didn't so much lend the State's credibility to the banks as give it to them unconditionally". [36]
McWilliams said that, providing the banks were reformed, some sort of "bad bank" would be necessary. One idea is to divide our banks into good and bad banks. We could set up one or two bad banks, which would be "financial skips" into which we throw bad loans. [37] In 2009 McWilliams criticised NAMA as proposed, and was in turn criticised by Brian Lenihan. [38]
During the post 2008 Financial Crisis, McWilliams questioned Ireland's continued participation in the Economic and Monetary Union of the European Union in his books. [39] In an interview with Irish broadcaster Marian Finucane, on RTÉ (17 January 2009) and reported in the international press, [40] McWilliams argued: "What I am saying is, that in Europe, if Ireland continues hurtling down this road, which is close to default, the whole of Europe will be badly affected, the credibility of the euro will be badly affected. .. It is very essential that we go to Europe and say we have a serious problem. … the way we get out of this is either – there are two options – either, we default, or we pull out of the euro. If we have a single currency, there are obligations and responsibilities on both sides. The idea that France and Germany can just hang us out to dry – as has been the talk the past few days – should not be taken lying down." [41]
McWilliams has frequently suggested that Ireland should leave the Euro and argued that the European Union is dominated by economies like Germany with very different priorities to Ireland. [43] [44] Despite hoping for a Remain vote and acknowledging that Brexit is a worse option for Britain, financially, he has expressed an understanding for why the British people might have voted for it with regards to issues like the desire for independence, [45] noting that Switzerland and Norway pay handsomely to have access to the common market while remaining independent of the political union because they value the "feeling" of sovereignty. [45]
McWilliams, who briefly worked in Tel Aviv, has frequently suggested Israel as an economic and social role model for Ireland, [46] arguing that the Republic should prioritise ties with the Irish diaspora around the world over EU member states with no historical connections to Ireland. [47] [48] In an article after 2023 Israel–Hamas war, McWilliams stated that "in postcolonial Ireland, we have the most pro-Palestinian population in Europe yet the most pro-American economy in the world. The Irish street is Palestinian, while the Irish boardroom is American... Ireland needs the West to be strong and unified." [49]
Although McWilliams has defended and praised Israel in his writings, he has denied that he is a 'Friend of Israel' stating that he is "just somebody who is prepared to see an Israeli point of view". [50]
In January 2007, McWilliams was selected as one of 250 Young Global Leaders by the World Economic Forum. [55]
The "Celtic Tiger" is a term referring to the economy of Ireland from the mid-1990s to the late 2000s, a period of rapid real economic growth fuelled by foreign direct investment. The boom was dampened by a subsequent property bubble which resulted in a severe economic downturn.
Charles James Haughey was an Irish Fianna Fáil politician who led four governments as Taoiseach: December 1979 to June 1981, March to December 1982, March 1987 to June 1989, and June 1989 to February 1992. He was also Minister for the Gaeltacht from 1987 to 1992, Leader of the Opposition from 1981 to 1982 and 1982 to 1987, Leader of Fianna Fáil from 1979 to 1992, Minister for Social Welfare and for Health from 1977 to 1979, Minister for Finance from 1966 to 1970, Minister for Agriculture from 1964 to 1966, Minister for Justice from 1961 to 1964 and Parliamentary Secretary to the Minister for Justice from 1959 to 1961. He served as a Teachta Dála (TD) from 1957 to 1992.
Garret Desmond FitzGerald was an Irish Fine Gael politician, economist, and barrister who served twice as Taoiseach, serving from 1981 to 1982 and 1982 to 1987. He served as Leader of Fine Gael from 1977 to 1987 and was twice Leader of the Opposition between 1977 and 1982; he was previously Minister for Foreign Affairs from 1973 to 1977. FitzGerald served as a Teachta Dála (TD) from 1969 to 1992 and was a Senator for the Industrial and Commercial Panel from 1965 to 1969.
Brian Bernard Cowen is an Irish former politician who served as Taoiseach and Leader of Fianna Fáil from 2008 to 2011. Cowen served as a TD for the constituency of Laois–Offaly from 1984 to 2011 and served in several ministerial roles between 1992 and 2011, including as Minister for Finance from 2004 to 2008 and Tánaiste from 2007 to 2008.
Joseph Duffy is an Irish radio and TV presenter employed by RTÉ. One of the public service broadcaster's highest-earning stars, he is the current presenter of Liveline, an interview and phone-in chat show broadcast on RTÉ Radio 1 on Mondays to Fridays between 13:45 and 15:00.
Shane Peter Nathaniel Ross is an Irish former Independent politician who served as Minister for Transport, Tourism and Sport from May 2016 to June 2020. He was a Teachta Dála (TD) for the Dublin Rathdown constituency from 2016 to 2020, and previously from 2011 to 2016 for the Dublin South constituency. He was a member of Seanad Éireann for the Dublin University from 1981 to 2011, until his election to Dáil Éireann at the 2011 general election.
The Irish property bubble was the speculative excess element of a long-term price increase of real estate in the Republic of Ireland from the early 2000s to 2007, a period known as the later part of the Celtic Tiger. In 2006, the prices peaked at the top of the bubble, with a combination of increased speculative construction and rapidly rising prices; in 2007 the prices first stabilised and then started to fall until 2010 following the shock effect of the Great Recession. By the second quarter of 2010, house prices in Ireland had fallen by 35% compared with the second quarter of 2007, and the number of housing loans approved fell by 73%.
Bartholomew Patrick "Bertie" Ahern is an Irish former Fianna Fáil politician who served as Taoiseach from 1997 to 2008, and as Leader of Fianna Fáil from 1994 to 2008. A Teachta Dála (TD) from 1977 to 2011, he served as Leader of the Opposition from 1994 to 1997. He was also Lord Mayor of Dublin from 1986 to 1987, Tánaiste from November to December 1994, and Minister for Finance from 1991 to 1994.
The Pope's Children: Ireland's New Elite is a book by journalist and economist David McWilliams.
Liveline is an Irish radio interview and phone-in chat show broadcast on RTÉ Radio 1 each weekday afternoon between 13.45 and 15.00. The programme, which has been presented since 1999 by Joe Duffy, and is known for its slogan, "Talk to Joe", tends to seek the public's opinion on various questions and debates, and invites conversation on current events and controversies. It also gives a platform to those who have suffered grievances or distressing events, and wish to raise awareness of them on the national airwaves. According to The New York Times, it is Ireland's "most popular radio call-in program". According to the Irish Independent, "[Joe Duffy's] greeting at 1.45pm every weekday—"Hello, good afternoon and you're very welcome to Liveline"—is the signal for 400,000 listeners to sit back and await some lively debate or the exposure of a scam or a social scandal".
Events from the year 2008 in Ireland.
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Seán FitzPatrick was an Irish banker who was chief executive and then chairman of Anglo Irish Bank, until he resigned in December 2008 amid mounting revelations over hidden loans. The scandal precipitated a collapse of the bank's share price which in turn led to its nationalisation on 21 January 2009. He was declared bankrupt in 2010. He was later prosecuted but acquitted of any criminal offence in relation to his role in the banking crisis.
George Lee is an Irish economist, journalist, television and radio presenter, and former Fine Gael politician. He has worked for RTÉ since 1992. Since 2019, he has been Environment Correspondent for RTÉ News. He previously was Economics Editor in 1996.
The post-2008 Irish economic downturn in the Republic of Ireland, coincided with a series of banking scandals, followed the 1990s and 2000s Celtic Tiger period of rapid real economic growth fuelled by foreign direct investment, a subsequent property bubble which rendered the real economy uncompetitive, and an expansion in bank lending in the early 2000s. An initial slowdown in economic growth amid the international 2007–2008 financial crisis greatly intensified in late 2008 and the country fell into recession for the first time since the 1980s. Emigration, as well as unemployment, escalated to levels not seen since that decade.
The National Asset Management Agency is a body created by the Government of Ireland in late 2009 in response to the Irish financial crisis and the deflation of the Irish property bubble.
Brian Joseph Lenihan was an Irish Fianna Fáil politician who served as Minister for Finance from 2008 to 2011, Deputy leader of Fianna Fáil from March 2011 to June 2011, Minister for Justice, Equality and Law Reform from 2007 to 2008 and Minister of State for Children from 2002 to 2007. He served as a Teachta Dála (TD) for the Dublin West constituency from 1996 until his death in 2011.
The Global Irish Economic Forum was a conference held in Dublin, Ireland in 2009 and 2011. Inspired by the World Economic Forum in Switzerland, international figures from the worlds of business and culture attend the event. The first Forum was held at Farmleigh in Dublin's Phoenix Park from 18 to 20 September 2009, and was given widespread coverage by RTÉ. The second forum was held at Dublin Castle in 2011.
Morgan Kelly is Professor of Economics at University College Dublin (UCD). Described by The Irish Times as the country's official soothsayer, Kelly notably predicted the bursting of the Irish property bubble.
The University College Dublin Economics Society is a university society, at University College Dublin (UCD) in Ireland, which "promotes engagement with economics". The society, in its current form, was founded in 2014.