How did IRELAND step out of POVERTY? – VisualPolitik EN

Ireland, the country with the highest density
of famous musicians per capita in the entire world. Ireland is a country with less than 5 million
inhabitants – even Boston has a larger population. But as small as the population may be Ireland
is the cradle of well known music stars such as Enya, The Cramberries, and, of course Bono
from U2. But there is another thing that makes Ireland
famous as well. It is the second wealthiest country in the
Eurozone. Further, Irish people also have more money
than the British or the Swiss. And this is surprising given that just 30
years ago, Ireland was as poor as Greece. Yep, you heard it right. Back then, 1 in every 5 Irish university students
were emigrating to other countries. Today, there are more people with Irish blood
living in the US or Australia than in Ireland itself! Nonetheless, now this country is the home
to some of the world’s leading technological companies. Firms like Apple or Google have their tax
headquarters here. Many of you might thinking now that this is
simple because of the low taxes there, right? Now, of course, it is true that Ireland offers
good fiscal conditions for companies. But other countries like the Republic of Liberia
or Seychelles also pretty low corporate taxes and they are not even half as rich as Ireland… So the question here is: What have they done
to grow so fast? How is that possible that, even after the
financial crisis, Ireland remains wealthier than Switzerland? Today we are going to answer this question. But first, as usual, let´s take a look at
the history. THE POOREST OF THE WEALTHIEST Ireland was born in 1922. Before that the whole island was part of the
British Crown. And the relationship… Well, it wasn’t exactly great. For the English politicians, Ireland was a
land of Catholic peasants, who were unwilling to work, and devoted to having lots and lots
of children. This explains why, after they got their independence,
the new Republic of Ireland cut all their ties with London. Well, actually, it wasn’t just London, they
closed off their relationships with the rest of the world as wel. Even during World War II, they were the only
English speaking country that kept neutral. But not only that… The different Irish governments closed their
gates to international trade. They even but a ban on foreigners owning or
investing in local companies! So what was the outcome of these policies? Well, that would be a brutal economic crisis… Fortunately enough though, since Irish people
spoke English, they could easily move to America. And we’re not just talking about a few adventurers
here… In just a few decades, the Irish population
was cut in half. And, of course, this lead to the national
industry not growing as was expected. Just think about it: in such a small country,
it’s simply impossible to find the tools and resources needed to build factories and
machines. They needed to import them. But since the government put so many fares
and barriers on foreign trade… it was pretty to do this, and start a company. This is why in 1957, with the government of
Seán Thomas O´Kelly, made Ireland turn 180 on their trade policy. This is how they went from not buying anything
to opening their gates to the entire world. Right after that, they signed a free trade
agreement with UK and, a decade later, they would enter the European Community, later
called European Union. But hold on just a minute, my dear libertarians
who might be watching this video… just hold back your enthusiasm for a wee moment. Because this openness to free trade was not
as good as expected. Look, for decades, Ireland was closed for
business. They had nationalized some of their companies,
and when a company knows that they have no rivals and their market share is guaranteed
by the government… well they have no reasons to improve! This explains, for instance, why in 1980,
people in the city of CORK, in the South of the island, had so many electricity blackouts. The wiring network hadn’t been repaired
for decades. And similar things happened in multiple other
industries. All of a sudden, the Irish economy allowed
people buy goods abroad. New products, more competitive products, appeared
in the market. So now your probably wondering, what happened
with the local producers? Well… they disappeared, and with them, thousands
of people lost their Jobs. In 1987, Ireland reached an unemployment of
17%. So, once again the Irish youth started packing
up and moving abroad. Now, if you’ve been following VisualPolitik
from some time now, you probably know that immigration is not really a problem for a
country. Can you guess what the real issue is? Well, it’s the opposite. MIGRATION. Who was leaving Ireland? It was the university students and those with
higher skills. This caused what is know as a BRAIN DRAIN. Oh, but there is more! In order to attract multinational corporations,
the government lowered taxes. And, of course, this strategy worked out well. Firms like Intel, Apple and Microsoft chose
Ireland as the place for their European Headquarters. So, what was the problem with this? They just opened a small office with an accountant. This means their contribution to the country´s
wealth was fairly poor. If this was not enough, the same government
that put the red carpet out to companies, was raising income tax on its citizens. Some ended up paying up to a 60% tax from
their salaries. If this was not enough, Irish legislation
did not make it easy to hire people. So consider the situation: jobs are disappearing,
local companies are going bankrupt, government spending is on the rise, and thousands of
Irish people are leaving the country. In 1988 The Economist magazine published this
article. “Poorest of the rich. Poor Ireland behaved as though it was Rich
Now it must pay the price”. Alright, so that’s the bad stuff covered. Now, how did they step out of this scenario? Let me tell you a story. THE CELTIC TIGER ROARS It was the year 1987, and Charles Haughey
had won the elections in Ireland. He found a country on the edge of collapse. And he realized something: you can’t open
your economic system without modernizing it first. Of course, companies like ORACLE or HP were
happy to be in Ireland and pay way less taxes than in the US. But where they willing to open a research
center or a factory that would employ 1000 people? The answer is no. And why? Well, first they would have to deal with the
labor laws, which was a bureaucratic nightmare. But not only that! Do you remember what I told you about the
60% income tax? This means that, no matter how high the salaries
are, the worker will get a fairly small share of that. In other words, highly skilled professionals
would rather move to the US. So the first policy implemented by Haughey
was to make a deal with the trade unions and the companies: salaries would grow at the
same rate as the economy would. On the other hand, he lowered income taxes. This way, workers ended up making more money
even if the wages were the same. And soon this started generating results. “Hewlett Packard Leixlip plant is to employ
2000 people by 2000” In a short amount of time, all of those multinational
companies that had opened their fiscal headquarters on Irish soil started opening their own factories
and offices. Meanwhile, unemployment was going down, wages
were on the rise, and even the government collected more money. But, not only that, this deal with the unions
and bureaucratic simplification helped create all new companies. Even flown with RyanAir? Bought a t-shirt at Primark? Drunk a Guinness? Well, all of those companies expanded internationally
during those years. This explains why the Irish economy grew as
much as the Chinese during the 1990s. Suddenly, hairdressers in Dublin would offer
Champagne to their customers. Some people even flew to New York to do some
shopping on the weekend. These were the years of the Celtic Tiger. And at that point, The Economist decided to
dedicate another article to the country. “A decade ago Irish incomes were less than
two-thirds of British incomes; last year, on one measure, they surpassed them.“ But hold on a moment because not everything
is so perfect! Of course, during those 15 years, salaries
doubled, but that optimism drove banks to offer mortgages to nearly everyone and encouraged
ridiculous spending. In those years, there were even companies
that rented helicopters for children to made have their first communion in the air! And this led to a financial crisis that we
are going to covering in another video. If you don´t wanna miss this, please don’t
forget to subscribe to this channel. Meanwhile, you might want to watch this other
video where we explain why London grows faster than New York City. Click here to see it. So, now the question is: Do you think the
Irish model could help other countries like Greece or India? Do you think poor countries could benefit
from attracting foreign investment? You can leave your answer in the comments
below. And if you like this video, give us a thumbs
up. And, as always, I’ll see you next time!

100 Replies to “How did IRELAND step out of POVERTY? – VisualPolitik EN”

  1. You do good videos, but this is not one of them – Ireland's "Economic Miracle'' is just another MSM narrative. Ireland's wealth is measured in terms of GDP which includes money made by multi-national corporations which is held in accounts there to take advantage of the low corporate tax rate – naturally, multi-nationals do contribute to Ireland's wealth in real terms but the GDP figures greatly exaggerate same. In reality, Ireland cannot even house its own people (people have died sleeping rough – yes, third world stuff) while infrastructural investment lags behind. To tackle congestion, the authorities basically want everyone cycling as all other traffic (buses included) have to make do with much narrower lanes – yet not a sod has been turned on Dublin's metro – you heard right! Dublin still has no metro line. Healthcare provision is inadequate for the growing population while most towns are badly planned – NIMBYism in part to blame. Without proper infrastructure with comprehensive coverage, no nation can thrive – simple as. Unless these and other shortcomings are highlighted, Ireland will never improve – it's called tough love!

  2. The beauty of an island where the government control a few business men and the media is that you can tell the population anything.
    The tech giants are here due to near zero tax rates but the people are told its because they're so intelligent and well educated.

  3. A key policy back in the 90s you've did not mention was heavily subsidised college education producing a new generation of highly skilled young people which further attracted big pharma, tech etc, we actually planned long term back then which is key to developing an economy and jump ahead of rival countries. Unfortunately these days governments only look at the next election and fail the people as a result, the main flaw in modern politics in developed countries

  4. Rich??? The cpuntry is on debt, most people in iteland live on or below the poverty line. Stop spreading this bull shit.


  6. The E U owns Ireland wait till they call in the loans .it will be the Greek experience for you before long.

  7. Ireland stepped out of poverty by means of foreign (EU) loans and grants.
    The fact is, per head of the population Ireland has twice the level of government debt as Greece. An amazing success story, eh ?

  8. Ireland's per capita GDP is exaggerated due to its low corporate taxes so a lot of taxable income is hidden in Ireland where companies like Google have offices that employs no one. It's not real wealth at all just tax dodging.

    Think about it what innovative global companies have come out of Ireland in the last 20 years you can think of? Where is the Irish ARM?

  9. And Saudi Arabia is all for Christianity. Ethiopia is the No.1 richest country and Farage has said he only started brexit coz he had an agrgument with his German wife …. wait that last one could be true.

  10. Despite many comments here Ireland is factually very rich by international standards used to measure wealth. Economics is complicated and should be taught in schools. But Ireland has now become very expensive to live in. Whenever I go to other European countries I am always surprised how cheep everything is ( excluding Scandinavia)

  11. Eire was severely exploited by the foreign businesses (British and Scot) under laws written in London DESIGNED TO EXPLOIT THE IRISH.

  12. You haven't a clue what your talking about mate. Ireland has serious tax avoidance,Corruption, euro centric politicians homelessness, privatisation, low pay and high rents. Capitalism is killing Ireland.

  13. what about the legendary banned from Cork Ireland Rory Gallagher and band nobody mention anything about them they were Legends and I'm from the United States I'm very proud to be I was a little girl during that time. One of the phenomenal band so underrated gorgeous men they were I don't understand why Rory Gallagher never got married and had children

  14. Pure rubbish. Yes politicians are rich, bankers are rich, developers are rich. But the people, the lucky ones are just keeping their heads above the water. Ireland where surviving is the new thriving.

  15. No mention of the EU pumping loads of German and British EU money into Ireland ? Makes the whole piece unbelievable.

  16. Information to be cautious of, it being mainstream and obviously just another rhetorik offered by a privat person of which he has downloaded into his brain. Sorry thats a bit negative, peace !

  17. Your reference to Boston's population as being larger than Ireland's is inaccurate. Greater or metro Boston has fewer than 5 million people.You would be better off using Philadelphia as your example, as it has 6 million people and, therefore, more than Ireland.

  18. Nice to see that this asshole has researched the topic thoroughly……
    Not a mention of Irish literary genius:
    Irish explorers:
    Irish comedians:
    Irish actors:
    Irish humanitarians:
    Irish politicians:
    And not a mention of the literally millions of Irish who spread across the globe making their mark in whatever way they could and leaving their legacies for the betterment of all mankind.

  19. when ireland get into trouble it exports citizens and drops foreign corporate tax while increasing native irish taxes.

    one line explination is all that required

  20. OK, I live in Ireland and I ino the history and polotics, the celtic tiger destroyed Ireland, the European banks cripples us, hence the reason we have the highest mortgage rates in the whole of Europe, 2.6% we are still paying off debts to countries who bailed us out of the celtic tiger in 2009. The country went bank rupt, there is no health care due to poor conditions and better wages elsewhere for nurses, in deep south of Ireland there is no industries, everything is imported and taxed at very high rates wich compared to other euro currency countries makes everything so expensive, road taxes and other taxes are highest in Europe, rent is at a all time high, general services, schools, busses, trains, don't even cover rural parts, the list goes on, but my point is for the normal citizens it's a expensive life with no decent public services for the highest taxes and vat rates in Europe, I geuss the story of Ireland being one of the richest countries stands for the globalist company's but it's certainly not we people who benefit from it

  21. Even tho the video is false thanks for showing parts of cork the biggest county in Ireland in the first few minutes 🇮🇪

  22. You can hide any truth by manipulating statistics. Walk the streets of Ireland, especially Dublin and compare it to the rest of Europe. It's a f*cking dump and it's getting worse

  23. Ireland rich? You clearly have never been here. The money is held by a small number of people, like that evil globalist asswipe Bono. And I find your condescending attitude toward the Irish very offensive; you need a fist upside your head, boyo. Racist piece of shite wimp.

  24. Be a Lot richer If corporations paid their fair share
    of Taxes. Bono owes €14,000,000 in Taxes
    Government is Corrupt as sin .

  25. Man why lie to your followers Ireland is poor we have the biggest homeless crisis ever government is flooding Ireland with blacks and packeys Ireland is fucked

  26. It seems Ireland has done a lot of good things. They had way too much socialism and government and threw it off step by step. They would have been much better off had they done it earlier. Of course unhealthy companies held alive artificially have to die, you have to take your bitter medicine to get well.
    Rescuing banks is a really stupid socialist thing to do, in capitalism you let them fail and remove the bad players instead of giving them golden parachutes or worse still, letting them continue and telling them if you are too big to fail your losses will be socialized again.
    Iceland did that right.

  27. Illuminati, NWO Bono pays no tax in Ireland. Ireland is not rich because of him. Bono backed the pro abortion vote & endangers Ireland by backing mass immigration into Ireland. Bono would sell the soul of Ireland to the devil to make himself rich. Boycott U2 they are satanic wankers.

  28. I know this was made 2 years ago, but where did you get your info from. Here in Ireland poverty is high, almost 1 million people living in consistent poverty (2018 figures) with 230,000 of them being children. I love your channel but I think you need to do a wee bit more research before you publish. A handful of elites dose not make a country. Sorry but a big thumbs down for this one.

  29. They didn't have several different factions of people fighting each other for quotas. We have that in India.

  30. I'd love to take few of my Italian politicians and bang their heads on an old CRT screen while this video in running for the whole duration of it.


  32. Ireland is more wealthy than Switzerland? Where did you get it from? According to
    Average Monthly Net Salary (After Tax) for Switzerland is 4,529.42 € for the Ireland 2,250.26 € (May 2019)

  33. "Ireland was born in 1922, but before that the whole island was part of the British crown" thanks for not even address the fact we only actually became part the British crown in 1801 after 100s of years of attempted conquering and attacks from across the Irish sea.. We have always been a country that fights for what we have and have overcome alot more than what has been included in this video..
    I know we're talking about modern Ireland here, but the state of our economy in 1988 was largely impacted by how long we spent defending our land from the British instead of building our own industry..

  34. Attracting foreign investment is ok but not when it becomes the foundation of an unbalanced economy.THere will always be somewhere else for them to go ,somewhere with cheaper labour and lower taxes.It becomes a race to the bottom.
    It also makes you vunerable to threat from the foreign investors and gives them an undue political influence.
    THe many foreign companies that came to the UK due to advantageous labor and tax laws and EU access have openly tried to influence national policy.THey have that right to close factories ,if we are bad boys,but the tragedy is that as a nation the UK failed to compete and had to rely on outsiders.
    If your economy has to rely on outsiders you are not really independent.
    I say this as a defence of the earlier Irish governments who clearly had this  freedom and total self governance as the "heart of the matter".Ourselves Alone is a passionate declaration of this.
    People like DeValera have lately been demonised to comic caricature level.Easy to do this from the safe distance of time.

  35. Ireland should be ashamed. A country I used to respect and now just a haven for tax dodgers. If everyone behaved like Ireland the world wouldn't be able to function except for the very elite. Every time they allow tax to be evaded there is less money to be spent on healthcare and public services in the countries where the money has been spent. Start spending your money with retailers that pay fair tax in your country instead of companies like Starbucks, Amazon and Apple who take it to Ireland and pay next to nothing.

  36. Would this work for Africa? No, we don't have the basics ,political stability , stronger institutions, not to many intellectuals I think in the Irish context it was get rich or die poor and it is great to see that the country has stood on its feet. My question is as a curious African , for how long could the Irish model keep going under EU policies that tend to harmonisation

  37. Is this video made in Israel that Al I say because u sound like u ar Jews we ar one of many cuntrys so Tel the truth peace colabola

  38. The enforced policy of Mass Immigration of the Dim and Incompatible, will take care of this situation.
    The Terrible Truth About "Ireland 2040" (YT.

  39. This has to be simply the most misinformation I'v ever heard in such a short space of time. But you must be given credit for your wild imagination, it seems to just gush forth from you….Did you kiss the Blarney Stone?!!
    In fact, people are dying on a daily basis in Ireland on trollies in the hospital corridors because they can't afford to provide sufficient care! Not to mention the 10s of thousands sleeping rough on the streets..

  40. Ireland is flat broke….It`s even more in debt than Greece which is TOTALLY fucked thanks to the EU!!

  41. What facts should you know about Ireland's national debt? You could wrap $1 bills around the Earth 967 times with the debt amount. If you lay $1 bills on top of each other they would make a pile 27,115 km, or 16,849 miles high. That's equivalent to 0.07 trips to the Moon.

    Read more at:

  42. this video is absolute nonsense .. Im rirish and i can tell you for a fact that Ireland is not the second richest country in europe.. i don't know where these people get their facts from ..

  43. Ireland have not stopped out of poverty, do you research better this video if bullshit. I live in Ireland and its still fucked… Born here so I know exactly what it was like during the Celtic tiger and its still a austerity bound country

  44. Wealthier than Switzerland… that just turned the whole video and you into a joke. Switzerland is superior and more beautiful in every way than Ireland. Ireland is a dump that any person with a chance will leave¨

  45. Ireland has the most % of millionaires per head of the population of the whole world. Life can be difficult if you are Joe the plumber. If the government does not put in regulations to actually control the economony, they will keep falling into recessions. How can insurance firms make a 1300% increase in profit? How can it be true that another debt crisis is looming? They should have paid off those housing debts instead of creating another bigger bubble. Not everything can be solved with liberalism.

  46. I am from and live in Chile, I work for an Irish company, I've been there twice and all my bosses are Irish. What can I say, people are awesome and very humble, still after the Tiger. Please, stay like that! Love your nation.

  47. Ireland's biggest mistake was adopting socialist policies, and embracing socialism and communism, and dictatorship, I agree they should be free of the English, but not at the price of Irish lives, there's a reason there are more Irish in the United States than in Ireland

  48. Ireland wasn't handed over to the Irish in 1922 it was handed over to the Catholic Church who in turn imposed a very conservative dogma that was only broken in the 1980's. Today lots of people still think of themselves as Catholic but in truth only something like 10% attend regular church services, that's even less than the Dutch. I grew up in the 60's and Ireland today is nothing like it was back then – when our two biggest exports were beef and people. When I was a kid you would never see many foreigners around, but today 1 in every 5 people living in the Republic was born abroad, In Northern Ireland it's 1 in every 100. I lived in the United States for 21 years and I loved it, I still do, but I think the quality of life in the Republic is better overall. Yes we still have some legacy issues to deal with, but at least I think we're moving in the right direction.

  49. Ireland is such a brilliant country over 30% of graduates leave to go to the Eu or Australia, also don’t put bono in the thumb nail, we don’t like that prick

  50. Ireland is seriously in debt to the tune of 200 billion plus, The Irish Government was terrified the whole house of cards would fall during the bust and was told under no uncertain terms by Germany/Europe, imf to take on billions of toxic debt owed by private banks, no vote, no opposition, nothing. Every Irish citizen was burdened with a debt nothing to do with them, which their great grand children will still be paying, Unbelievable as this may seem it is actually true, look it up. Democracy in action, Iceland went broke and prosecuted the bad guys, Ireland, no politician sacked, only one banker prosecuted and we are “rich” again. Borrowed money, borrowed time.

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