For example, between 1995 and 1997, the world's GDP grew by more than during the 10,000 years from 8100 BC to 1900!!!
Of all the countries of the EU, the Republic of Ireland gained the most. Unemployment fell from over 15% to 5%. GDP growth averaged 7% each year from 1994 to 2004. GDP per capita rose from 66% of the EU average in 1986, to 111% of EU average in 1999 (significantly higher than in the UK).
The government policies that seemed to have led to this success were deregulation, encouragement of foreign investment, and very low corporation tax rates of 11% (whereas in the USA, it is 35%)
However, as the graph below here shows, the fall of Ireland during the Credit Crunch has been just as spectacular.
The average wealth of a household fell from E95,000 in 2006, to E51,00.
The Irish banks needed billions of euros of help from the government.
In 2010, the government will borrow funds equivalent to 32% of the whole country's production.
In recent weeks, the country's situation has got so bad that the Irish government has been forced to accept 85 billion Euros of loans from the EU and the IMF.
At the same time, they announced 10 billion Euros of cuts in government spending, and 5 billion in tax rises.
Understandably, the people of Ireland are angry, as you can see in this picture:
But, have no fear people of Ireland, because your government has thought of a plan, and although it may not solve all the problems straight away, it is will surely make everyone feel much better. The plan is....
CHEESE!
That's right, the Irish government has bought a very big piece of cheese and every household in the country will get some of it!
Brendan Smith, the agriculture minister, said the plan was "an important means of contributing towards the well-being of the most deprived citizens in the [EU] community".
However, the plan has made some Irish people extremely angry:
One caller to a radio show said: "Have they taken leave of their senses? It's not cheese that people who have lost their jobs that people are worried about, it's about how they're going to tell their children or grandchildren that Santa has very little money."
"What are they going to tell their children and grandchildren: that Santa has cheese instead?"
However, the plan has made some Irish people extremely angry:
One caller to a radio show said: "Have they taken leave of their senses? It's not cheese that people who have lost their jobs that people are worried about, it's about how they're going to tell their children or grandchildren that Santa has very little money."
"What are they going to tell their children and grandchildren: that Santa has cheese instead?"
Another said: "This is just crackers. The scheme is full of holes. This is the last straw - it's really grated on the whole community."
Further Reading
This is interesting
ReplyDeletei afraid that cheese is not the best solution that the Irish government could ever think of :)
ReplyDeletei mentioned Irish government in my personal statement as an example of how political decisions affect the economy of the country, so it was interesting to read more about that topic.
ReplyDelete