There has been a lot of research into how winning a sporting event/game has a collective feel-good factor across the nation concerned, boosting consumer confidence and household spending. If one country needs this more than any it is Ireland. As stated on a previous post this week the Irish economy is in dire straits. The following is from The Economist:
Consumer spending has fallen even harder than income: households saved 12% of their disposable income last year, up from 3.9% two years ago. House prices, which had risen faster than in any other rich country, are 36% below their 2006 peak and still falling. Job prospects are bleak. The unemployment rate is close to 14%, up from 4% or so in the mid-2000s.
So will a first ever win against the AB’s have any impact on consumer spending? I somehow can’t see it eventhough, in theoretical terms, Irish supporters utility (satisfaction) from watching the game should go up as should shares in the Guinness brewery. However, would a win on Saturday be a mirror image of what has just happened to the economy over the last 20 years?
Broke (no money and Ireland keep losing) – Boom (Ireland win and you celebrate) – Bubble (you borrow to celebrate and have a great time)- Burst (you have a major overdraft come Monday morning and a sore head)