Ireland (but consider the source)

Blitzz Boy · Apr 21, 2003

http://www.cato.org/dailys/04-21-03.html

Granted, the Cato Institute's policy of "sell the Washington Monument to Nike and let them paint a 'swoosh' on it" is not exactly in agreement with most posters here. And we already have a few posts on Fox News here.

This article is interesting to me, because over the last year; the company I work for has laid off a few dozen employees and shipped the jobs to Taiwan. But we did sell some of our excess equipment to a company in Ireland.

And Ireland seems to have the same problem that we have; with productive people being taxed and the tax revenue being spent on rustics, rubes and hicks.

But does anyone have any more info on the above article? Are they using "Enronesque" accounting to produce the growth and income figures? Within a year or two, is Ireland's economy going to implode like Silicon Valley's?

dfb547490 · Apr 21, 2003

I don't really know anything about Ireland's economic policies, but I do know that much of their technological boom relied on dot-com companies. With the burst of the technology bubble, they are experiencing an economic downturn that will probably continue for the near future. That being said, they'll remain on the level of Western European countries like the UK, Germany, and France; they won't slip back into the abject poverty that plagued the country until the late 80s.

-cman- · Apr 21, 2003

While the Irish economy is not growing at the "tiger" pace it was during the dot-com boom, it is still doing better than most of Western Europe. This from a Bank of Ireland profit report out 3/26:

Bank of Ireland derives roughly 55% of its profits from the Irish economy, which is forecast to grow by about 3.5% this year, nearly three times most European Union average expectations. "Retail Republic of Ireland is expected to report a strong performance, with a mid-teen percentage pre-tax profit growth.

"Against the background of a more subdued business environment, this is a satisfactory outcome and reflects good income growth, a modest increase in costs and continuing sound asset quality," the bank said.
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With unemployment hovering around 5% and predicted by the EU to hit 5.5 this year, I'd say the economy is doing pretty well by most measures.

OtakuFC · Apr 21, 2003

In addition, Ireland has been ranked number 1 in terms of globalization for the past two years:

Ireland tops this year's index for the second year in a row, in part because it was one of a handful of countries to avoid the slowdown in global
trade and capital flows. In 2001, Ireland attracted $91 billion in portfolio capital inflows -- $11 billion more than the previous year and nearly $30 billion more than its neighbor, the United Kingdom. Ireland also expanded its international trade volumes, ranking just behind Singapore and Malaysia in total trade measured as a share of gross domestic product. Ireland is also
the world's most talkative nation, with more than 737 minutes of international telephone calls per person in 2001.
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Father Ted · Apr 21, 2003

Originally posted by dfb547490
I don't really know anything about Ireland's economic policies, but I do know that much of their technological boom relied on dot-com companies. With the burst of the technology bubble, they are experiencing an economic downturn that will probably continue for the near future. That being said, they'll remain on the level of Western European countries like the UK, Germany, and France; they won't slip back into the abject poverty that plagued the country until the late 80s.
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I would agree with this analysis, a lot of high tech US companies have sites in Ireland (tax breaks, foot hold into Europe, good educated work force). Along with the dot com down turn here in the US has had a ripple effect in Ireland. I think the ecomony will be fine in the short to medium term. Long term? Who knows?