Is Ireland's Economy a Scam?

Welcome to Ireland, a nation with two contrasting economic realities. On the surface, Ireland's economy appears as one of the world’s richest, only behind Luxembourg in the IMF rankings, surpassing global economic leaders like Switzerland and the USA. But delve deeper, and you discover a more complex narrative.

For much of its history, Ireland has grappled with severe poverty and economic instability. Yet, the past two decades have painted a picture of unprecedented wealth, presenting Ireland as the richest major economy on paper. This fairytale, however, is powered by what many would call creative accounting, rather than a genuine economic revolution.

In this video, we explore the dichotomy between Ireland's 'make-believe' economy—fueled by offshore trillions and favorable tax laws—and its 'real' economy, composed of hard-working individuals and traditional businesses. We delve into how these two facets interact, the benefits of being a business haven comparable to New York or Singapore, and the inherent risks of building prosperity on precarious financial strategies.

Join us as we unpack the intricate dance between Ireland’s enticing tax policies and its real economic substance, evaluating both the high stakes and the high gains of this fascinating economic setup. What does this mean for the future of Ireland’s economy?

#EconomicsExplained #Ireland #Trading212

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[Bazookatone]

This is all fair, but I feel its my patriotic duty to point out that this isn't like Venezuela becoming completely dependent on oil and then being broke as f**k once the oil price drops or something. Ireland has no oil, no coal, no steel - we have some nikel, arable land, and people we can educate.

The money made from the shenanigans has, by and large, not been mis spent on foolish boondoggles, we've educated our work force and built a decent road system and generally tried to run the place sort of competently. And if you look at things like the Good Country Index and the Human Development Index, things that look at factors other than just GDP, we tend to rank pretty highly.

We also definitely enticed the US firms into Ireland with the tax rate, but we've KEPT them by being well educated, being an easy place to do business and being competitively salaried. Intel, Analog, Pfizer and whole slew of others actually manufacture things here - this isn't the Cayman islands where "corporate HQ" is just a post box in an office somehwere.

Its absolutely true that our real wealth is much lower than our "on paper" wealth, and its absolutely true that we were happy to ride that particular gravy train for as long as we could - but its also true that we knew it couldn't last forever and we agreed to end it (once we had no other

[gammypage]

I'm irish and your history lesson was quite irritating tbh, there was a reason people were so dependent on the potato!! The country was a net exporter of food while that million starved.

[paulreynolds]

As a irish person....yes... Our politicians are obsessed with things looking good rather than actually being good... Sucks to be a person ..great to be an international company🙃

[djtomoy]

“That money was just resting in my account”

[calumodonnell]

This video is a half truth, and that’s being generous.

Tax gets these companies in the door, but they have real value-adding operations in Ireland that generate enormous real economic activity.
For example; Ireland is one of the world’s largest producers of pharmaceuticals and medical devices.

Irelands Human Development Index (HDI) ranking of 7th in the world proves the economy benefits its people (HDI is based on lifespan, education etc. not GDP).

Portraying aircraft leasing as a tool for dodgy airlines is ridiculous. Several national flag carriers lease their planes in Ireland (such as American Airlines), because it’s cheaper to lease than to borrow upfront. We would all be paying far more for plane tickets without leasing.

I expected a lot better from this channel.

[robertmcdonnell]

The term Celtic Tiger generally referes to the period following economic expansion in the late 90s to the crash of '08. It is not usually used in reference to today's Ireland.

[peoplesrepublicofliberland]

I hate it when my green colored country goes red

[theMosen]

I remember Ireland in the 1980s. In comparison to back then and to other countries I've lived in, it seems pretty wealthy today. To me at least. Maybe not "second richest country in the world" wealthy, but definitely above average.

[hungo]

The irish economy is massively overstated by the incessant capital inflows of US conglomerates. On the one hand, these multinationals drive up living standards and create an astronomical number of high paid jobs. On the flip side, these firms also ratchet up living expenses and most notably housing to staggeringly high levels. Having said that, Irish youngsters are bearing the brunt of housing unaffordability.

[chrisfloyd]

The great hunger was a genocide btw. The british were using Ireland as a big farm and shipped out everything that wasn't a potato. When the potatoes got the blight, england did not change a thing and made the people of Ireland starve.

[Kfend]

Yes Irealnd's GDP is over inflated, however the Irish government and central bank use the adjusted GNI (GDP-multinational tax receipts) to really gauge the economys performance. Also the very business friendly policies have created a very strong manufacturing industry here, especially phamaceutical products, Irelands largest export, creating many high paying jobs which benefit a large proportion of the population. Taking away Irelands IP schenanigans, you see a country which has a strong manufacturing industry, highly educated workforce, many multinational headquarters, a reputation which is very business friendly environment and the only english speaking country in EU, all of which did not exist pre celtic tiger. I don't agree with the governments policies, however, to essentially conclude with Ireland is a con man which is destined for failure due to short sighted policies is disingenious.

This sad wet rock in the Atlantic had zero infrastructure due to the nations status as a colony for >900 years, and then a nation suffering from a post colonial economy for 70 years, has no natural resources, and had net emmigration and brain drain for the past 150 years as there were no prospects for it's citizens. Nowadays, it has become a nation at least on par with their European counterparts, with a sovereign wealth fund to boot, full employment and significant opportunities for its citizens and the few fortunate migrants that make it here. This video glosses over the seismic changes which have occurred in Irish society over the past 30 years.

[Zohaib]

Corporations paying only 12.5% while i have to pay almost half of my salary in taxes. Well done Ireland.

[Eire]

Ireland forecasts budget surplus of more than €8bn in 2024, According to a 2022 report by IDA Ireland, there are a total of 301, 475 people working for foreign multinationals in the country.

[fergal]

It's referred to as the Famine - not the great hunger. Also, The Celtic Tiger refers to a period of a few years of very strong economy. We are not known as The Celtic Tiger, that's not a thing.

[dereksage]

Yet you scored the Irish economy 8.4 out of 10 in a previous video I think and it's near the top of your leaderboard. The exact same things that you mention in this video were at play when you made that video.

[floridaman]

Generally when a youtube video title contains a question mark. Its not true and its clickbait

[brianmcs]

That summary of IRL's economic history needs more work.

I'm being very polite.

[talideon]

6:50 - I'll just point out here that real and effective tax rates are different things, and some countries in Europe (*cough* France *cough*) have so many ways to getting around paying corporation tax that their effective rates put Ireland to shame.

[thomaslyons]

you just had to find some way to use "shenanigans", didn't you?