There are two problems to deal with in relation to the Strait of Hormutz.
First, is the pricing problem. This is where the supply is still there, but the increase in prices is enough to cause considerable economic damage.
If input costs rise too quickly and the business environment becomes too unpredictable, then projects are not completed, companies go bankrupt, and people lose their jobs. Out of all the options the government has (and there are many), the best ones include slashing taxes to keep energy and wage expenses as low as possible. Otherwise, there is the danger we enter an economic spiral; exacerbated by government policy during and post lockdowns.
That economic spiral will manifest in terms of stagflation, but also potential emigration. That’s pretty much all can be done in the short term.
The second and more severe problem is the supply problem. This is if the Strait issue continues and we have shortages in essential products.
Again, not much Ireland can do from that part, but on the other hand, there is an opportunity and need to protect Irish households. The good news is that we’re still a few months out from winter, and even if the worst doesn’t happen (and I hope it doesn’t/probably won’t tbh) this will still be worthwhile.
What could be potentially done is trying to make/supplement Irish households with their own electricity. This can include solar panels and even energy generators to power the minimum in a household. We’ve done ambitious energy projects before, we can do them again. We’ve had multiple energy and supply shocks over the past few years. The time to get serious about this was long ago.
There’s no doubt that Fine Gael and the GP absolutely thrashed this country’s energy security over the past decade; points people like me and various others have been warning against for years now. And as per usual, journalists will smugly gaslight the Irish people, and the fundamentals will be glossed over. A trend that started since Fine Gael got in in 2011.
Irish nationalism needs a coherent policy and structure to the world around it. Yes. Fennelism all the way. Well, now is your chance to have that, to step out and shine.
Now, is your moment.
