Ireland's Economy
Lessons from Ireland
What Ireland teaches about openness, education, tax competition, banking risk and measurement, and a recap of the module.
Ireland offers several lessons.
Lessons
- Openness after protectionism can transform growth.
- Education creates foundations for future investment.
- Tax competition attracts investment but brings dependence and controversy.
- Property bubbles and bank guarantees can create crises.
- GDP can mislead in globalised economies.
- Windfalls should be saved.
Module recap
- Ireland’s GDP per person is inflated by multinationals.
- The Great Famine killed about a million people.
- Protectionism caused stagnation until 1958.
- The Celtic Tiger grew fast from 1995.
- Ireland’s corporate tax is 12.5 percent, now 15 percent for large firms.
- GDP jumped 26 percent in 2015.
- The 2008 crash required a bailout.
- Ireland received 14 billion euros from Apple.
- Housing is in crisis.
- Free secondary school began in 1967.
- Ireland is saving windfalls.
The transformation
A country that lost a quarter of its population to famine and emigration became one of Europe's richest within two centuries.
Thinking Ireland's success is only low taxes
Education, openness and EU membership mattered too.
Key takeaways
- Openness and education transformed Ireland.
- Tax competition brings benefits and risks.
- Property bubbles and guarantees caused crisis.
- Save windfalls and measure carefully.
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