The Celtic Tiger
From Dickinson College Wiki
File:Ireland1.png File:300px-Celtic tiger cartoon.png
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BEFORE THE CELTIC TIGER
Prior to the Celtic Tiger, Ireland's economy and standard of living was horrible.
- High Unemployment
- Slow economical growth
- High Inflation
- Heavy Taxes
- Towering public Debts.
Many factors contributed to Ireland's problems.
- Wrong fiscal policies
- Protectionism
- is the economic policy of restraining trade between nations, through methods such as high tariffs on imported goods, restrictive quotas, a variety of restrictive government regulations designed to discourage imports, and anti-dumping laws in an attempt to protect domestic industries in a particular nation from foreign take-over or competition.
INTRODUCTION OF THE CELTIC TIGER
The Irish government asserted changes to their economic structure.
- Fiscal and Monetary consolidation
- Fianna Fail government supported opposing party, Fine Gael, and started to change their policies
- They cut spending, taxes, and borrowing
- Interest rates were cut to stimulate the economy
- Tax Cuts were crucial component of a new social partnership between the working classes
- European Union Interaction
- Foreign domestic Investment boom
- Education alterations
- Low Personal Taxes
Positive Economic Effects
- Unemployment rate dropped significantly
- Fell from 18% in lat 1980's to 4.2% in 2005
- Average industrial wage grew at one of the highest rates in Europe
- Public Debt
- Dramatically cut to become one of the lowest in Europe (34% GDP in 2001)
- Public spending doubled without any significant increase in taxation levels
- Modern Ireland
- Dual Labor Market
- Increased the number of highly skilled workers
- Vast amount of well paid jobs
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Negative Economic Effects
- Inflation of prices
- groceries and chain store prices increased
- housing property increased
- Neglect of certain government responsibilities
- health care service did not receive sufficient fund
- at first transportation sector was not reformed
- transportation system was insufficient
- road ways could not support all the commuters
- Loss of culture among those with high paying jobs
- Irish people had more money to spend and grew out of old Irish ways
- There were more expensive cars and designer labels around Ireland
- Capitalist Economy Expansion
- Some desperate workers had to take the low paying jobs that attracted foreign companies to Ireland
- Unskilled jobs
- Low wages
- No job security
- Poverty levels increased
- The gap between the rich and the poor grew significantly
- Inflation of prices
- Some desperate workers had to take the low paying jobs that attracted foreign companies to Ireland
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