Is Ireland's Economy a Scam?
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- เผยแพร่เมื่อ 29 มิ.ย. 2024
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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?
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Why didn't you put ireland on national leader board. Do you not consider it a nation?
As an Australian what are your views on monarchy
Cmon, talk about land value tax, Georgism soon!
No ranking?
@thomasfsan You should also be focusing on climate collapse
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🙃
As someone who works between Ireland and the UK state...... The UK is way worse in the peripheries. Why the Welsh and Scottish don't say boo is beyond me
It's really sad how Ireland behaves. Ripping everyone else in the EU off, while they actually have the talent to build something amazing within the EU.
@PhilippBlum ripping off how exactly? The corporate tax rate is now 15%
@@Dewaters65 What about all these backchannel deals they do?
Wich one are you?
“That money was just resting in my account”
I heard yer a racist now, Father!
Father Curlery😂
It could have been worse. The money could have been tanning in the Cayman islands as well. Lol
Yes Ted
It was.
I hate it when my green colored country goes red
Salam my friend.😂
The redcoats are back
Caelid citizens be like:
Symbolically in Ireland we do too regardless of its meaning
Green above the red!
Seamus, fetch the fertiliser
Corporations paying only 12.5% while i have to pay almost half of my salary in taxes. Well done Ireland.
As an irish person who pays slightly OVER half in tax, you're welcome
Makes more sense if you recognize that your high paying Job would probably not exist in Ireland if the Taxes weren't so low.
I can understand the argument. But then the only way to be fair would be a flat tax rate. And people always fight the idea. In the end, i have concluded people want to pay less by making others pay more. There is nothing fair about this.
@@pocki892 ----- Exactly right and a point overlooked by this video. Apple for example currently has 6,000 employees located in Ireland earning nice salaries. What is more Apple has been employing people in Ireland since 1980 when Steve Jobs established the relationship.
Well, create several hundred high tech manufacturing jobs and offer benefits and perks, and bring several billion in fireign investment into the country, then you can pay 12.5%
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 choice.....).
Here here people are too quick to criticise and judge, even our own people
Ireland would be an economic backwater if it wasn’t for our government being clever and making the best out of a country that has no unique natural resources
This does seem like quite an inflammatory video alright. Theres a lot more to modern Ireland that the low tax rate, especially with such a focus on the double tax loophole that was closed yeara ago. Also the current 12.5% tax isn't exactly a whole pile off the new 15% minimum. Also no mention of the extremely highly educated workforce and the specific knowledge in things like Biotech and Pharma etc, that aren't easily transferable, unlike standard manufacturing roles
@@jamesomeara8668 Yeah this video skims over a lot of the Irish economy. Most economies in the world are borrowing massive amounts of money while Ireland runs at a surplus. So to say that Ireland doesn't benefit anything from multinationals and then not mention the actual economy being very healthy and well run seems to suggest the video had an agenda. If he was talking about the "real" economy then this should have been discussed along with the things like median salaries, etc.
Your trains still run on diesel...
And we have kids dieing in a,&e in limerick after waiting 14 hours to be seen by a doctor@@germanogirardelli
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.
The government got out of the (social) housing building game decades ago. County Councils only build a 10th of what is needed.
The government (FFG) want anyone with a spare bit of cash to be an accidental landlord (govt. gets tax on the rental income) and the landlord has to pay the mortgage using post-tax money.
Something like ISAs or Roth IRAs would cool the housing market.
just build houses
Youth bear that brunt everywhere.
@@declanmcardleI would be shocked if you don’t have the same thing as we do everywhere: NIMBY, aka “I got mine”
@@nietur With what builders?
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.
I mean there is a metric used that can compare countries wealth more fairly which is AIC, and using it Ireland is just ahead of Cyprus and behind Japan. I’m from Northern Ireland and I guarantee you that no Ireland is not some Uber wealthy country, and in fact many people are struggling more than in some average or poorer country. It summed up by the fact that the main university in Dublin is cancelling study exchanges because incoming students have been ending up homeless due to there being no housing.
We are the third highest GDP per capita but the cost of living is also high too, so in theory can earn 80k - 100k dollars a year but housing prices is like a hundred thousand, and it is not like all of Irish have this
Having high amount of money is kind meaningless if cost of living like housing price is also high as well
@@tiglishnobody8750 Also true elsewhere, is housing cheap in California or Switzerland?
@@tiglishnobody8750 GDP per capita is a misleading statistic. Try median wage adjusted for inflation (PPP).
That summary of IRL's economic history needs more work.
I'm being very polite.
An understatement
You should start your channel and make one then
Why? Do you just not like the fact that Ireland’s economy is based on everyone else’s expense?
@@adamheuer8502Economics explained chats a lot of shite in this video specifically when talking about history. He and his writers haven't a clue.
I checked out at 'great hunger'
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.
I’ve seen “Celtic Phoenix” being used now
@@NewBeckerhere we go again
@@NewBecker what stupid idiot came up with that
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.
Can’t wait to bring those jobs Home!!
No need for Irish people to be getting paid when American companies can hire American workers!
Still waiting for money to trickle down. It'll happen soon I promise
😂😂😂😂
For that you need to buy shares. Don't tell me nobody ever told you that. You thought it would happen by itself?
@@mathieusimoneau3358 absolutely no way you took this so seriously 😭
@@mathieusimoneau3358No, I'm an illiterate weeb with the IQ of a penguin.
Relax brother. T'was only ever a mere jest.
trickle presumes poverty
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.
GNI is still inflated by multnationals hence GNI* of which Ireland uses, which is still high and not totally remove from the effects, but a point about GNI, because it is so high, Ireland has enough headroom to take money from the ECB if need be. These multinationals are contributing a lot to Irish Manufacturing, and Irish Services. I know personally that Amazon alone are building data centres up and down the country are having positive knock effects not only in Rep of Ireland but also across the border in Northern Ireland as well. If these multinationals leave then it will be a more serious threat to Ireland than Brexit. Sovereign wealth fund, which will accumulate, will allow some independence from ECB and allow to mitigate some of the potential economic hardships in future.
And while Ireland's GDP might bypass its citizenry to some extent...That same criticism of GDP was made, generally, by the very economists who were awarded the Nobel Prize for inventing it in the first place. It is why projects like Real Time Inequality were started to try to quantify who actually benefits from the on-paper absurd US GDP figures that are pretty much just paper as far as the citizenry are concerned.
Sure the USA has a magnificent GDP and a pretty good GDP per capita...but how many US City and State, never mind the federal, governments are broke because of accounting "shenanigans" with GDP and sweet-heart tax deals? A classic example is Wyoming and Jackson Hole--which is the USA's massive personal/corporate tax shelter attached to a broke resource-extraction-dependent state, a la Venezuela, that 100% doesn't benefit from the accounting tricks. At All. You know when you cross the border into Wyoming--because the mobile homes start popping up--until you hit the Rich Parts like Jackson Hole that are owned by billionaires.
Absolutely. Ireland has a lot going for it, I’d say it’s one of the more promising countries in Europe. Yes it suffers all the same western neoliberal problems, but as it’s a small nation the problem are easier to solve. They are building houses everywhere the government has generous grants and schemes for buyers, they need more social housing also but I don’t think some Irish people realise how good they have it, there’s a reason why so many Germans and British move there.
The only reason those jobs have come to Ireland is because of this massive tax evasion. Ireland should be poor and it’s not because it has screwed over many more naive nations.
@@ONeill01 the data centres are a disaster, they have put too much pressure on the grid and we have been getting warnings of potential black outs the past couple winters, they use more resources than most of our cities do, all while providing barely my jobs
you just had to find some way to use "shenanigans", didn't you?
Cheeky shenanigans.
Well, it was right there. How could he not?
too bad he couldn't work in 'shillelagh' somehow, as in 'Ireland is now being beaten with its own shillelagh'
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.
I've really admired so much from this channel. It's hard to know what happened here.
The fact that you have put Ireland for years next to the top of your “leaderboard“ speaks volumes about the seriousness of this channel.
The channel never really claimed or tries to be serious. It's more pop-economics to be entertaining more than anything else. His older content was a bit more rigorous, but he probably realised it wasn't as popular.
Yes, he realised that half-arsed inflammatory videos yield a better return. He literally produced a video comparing Ireland's real and "paper" economy without comparing GDP to metrics specifically designed by the Irish Central Bank to remove external distortions: Modified gross national income and Modified Domestic Demand. GNI* comfortably knocks 20-25% off Irish GDP depending on the year. MDD (when adjusted for savings) shows consumption of Irish households lies somewhere between that of Sweden and the Netherlands. As Ireland was dirt poor for most of history our infrastructure hasn't kept up with the growth and has consequently bottle-necked the country's potential for future growth in the short term: essentially we have the wallets of 2024 Dutch citizens with the infrastructure of 1970s Netherlands.
As a side note, Ireland gets a lot of flak for its economic shenanigans (in many cases, rightly so) however it would be interesting to see how other economies would fair should their distorting factors be accentuated. and examined. How much does the City of London and the Chanel islands distort UK GDP? How much does the port of Rotterdam distort Dutch GDP figures?
This man is going through stats and they most educated people agree with him as for you well😅😅😅 it speaks for itself
Like with a lot of your more recent video's, you set out with a view on answering a question and then trail off into tangents, never really getting back on topic. Most of the script didn't seem to match the visuals on screen and almost all information is quite dated. Quality over quantity comes to mind...
My thoughts exactly. The double-Irish hasn't been used for nearly a decade now.
I've commented similarly on other videos. Definite decline in quality. Lazy analysis in some cases with little discussion or nuance so you don't learn anything substantive.
Those AI images of Mike are unnerving
I was wondering if I was the only one. They are so uncanny. It weirdly made me want to throw up like a bad theme park ride
Yeah, it's weird how AI art is instantly recognizable. I personally much prefer stock footage.
I'm not sure what the point of this video is? Yes, if you exclude most of the 'highest value' economic activities being carried out in a country then the economic data won't look as good
Ireland is a country with just over 100 years of history and the island is limited in natural fossil fuel resources. It has instead therefore decided to focus its economic efforts on becoming an attractive european base for multinational high tech, pharma, aircraft leasing, etc.. industries - yes, by using its low corporate tax rate and other pro-business policies, but also its skilled, educated & hard working english speaking population, its membership in the European Union, access to european markets, and its political stability and neutrality.
Don't get me wrong, this strategy has led to many other issues (housing shortages, not everyone in the country benefits, etc.. which btw many European peers are also facing) and Ireland has a lot of work to do to further develop its infrastructure & improve its quality of living. But on the flip side, it has provided opportunities for many people and has allowed Ireland to develop further economically.
The tone of this video feels overly political and fails to capture the nuance of the situation in my opinion -feels a bit similar to summarising Australia as a country which is 'just' mining and burning coal at an unsustainable rate and that its actions are contributing to the climate crisis that we are now facing (which I dont think is fair to say).
I agree with this. It is a video with an underlying agenda that Ireland is doing something inherently wrong, which I think is an unfair way to summarise the Irish economy.
Buzzwords and semi xenophobic troupes
the plan is to funnel the taxpayer of others countries into Ireland, can't works forever
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.
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.
Irelands effective rate has been quoted as 0.6%, it is a "tax black hole" as the IMF head put it
@@AquaticSkipper Id give odds that relates to just one company, Apple and how they have taken advantage of capital allowances ie the depreciation of intangible assets.
Correct. Its like the Irish are being punished for having such a transparent tax system unlike other countries that have so many allowances or tax breaks. A certain American billionaire pays no tax.
Everytime i work with an irish immigrant they say the same thing, the 08 crash was so hard on them that they gave up and fully chamged countries (canada / trades work) and havent wanted to go back since. Infinitesimal sample size but not wamting to go home is a pretty brutal indicator of qol
Ask your Irish colleague for some spelling lessons.
In Perth Western Australia post GFC many Irish came to Australia generally and the ones I spoke to,a lot based on my job, didn't see a future in Ireland sadly.They mostly loved it here but also missed home.
Ireland has a history of emigration (I'm Irish) the QoL is good, mostly comparable to Europe. Housing is incredibly expensive, but that's no different than Europe as well.
I'm not saying this video isn't accurate or that Ireland doesn't have problems.
Half of everyone i have heard of plan on leaving once they finish their apprenticeships cos of how much they can earn in australia/ new zealand
So the only people you talk to are those still abroad 15 years later?
I think your sample is biased.
The other "wealthy" states Norway, Finland, Iceland and Sweden are close to as rich on paper as Ireland yet it seems all wealthy countries are bleak and even though our wages and prices are higher, the quality of living is at or about Germany or Austria. Many of us are struggling.
Still, we have a massive social safety net to keep us aligned with them.
Please do this again with any Wealthy nation and not pretend Ireland is the outlier. Including Australia where the generation also below you can never afford to buy a house.
Also, our tax revenues do benefit us because as you mentioned, the proposed sovereign wealth fund. plus our current budget surpluses.
I've never been to Singapore so I have zero idea if their quality of life is above or below Germany and France.
Norway surprised me the most. As crazy expensive as it is, if you are not in fishing or oil, you are decimated each month for even the price of food not to mention rent.
I wouldn’t really call Ireland a major economy. It’s too small for that, even if it is wealthy per capita.
too small? like the size of Ireland?
@@tiglishnobody8750 No population size. GDP is only 533 billion. Even a small economy like Australia has 1.7 trillion and I don't think EE would call Australia a major economy.
@@Zei33 But we have HQ to many largest companies around world than Australia can dream
@@tiglishnobody8750 did you actually watch the video?
@@Zei33 I did watch and Idk what you talking about
Ireland has a housing crisis but so does the United States and Canada.
There is a particular housing problem in Dublin, however, there are multiple EU countries which have a worse homeless problem compared to Ireland including in France, Luxembourg, Greece and Sweden.
By many measures; Ireland is almost as wealthy per capita as France and wealthier than Spain. For an isolated country with few natural resources like Ireland to achieve this, is impressive.
How did Ireland do it? Multinationals in Ireland pay a lower tax rate. That is why they are located in Ireland with their employees who contribute to the Irish economy.
For the longterm future, the Irish Wealth Fund seems like a promising idea.
@@bb1111116 Our butter is also top notch and considered a luxury food item globally - which I find hilarious but it’s a great thing for our dairy industry
I don't think you realise how worse Irelands housing crisis is compared to the rest of Europe.
@@emanwhomakesbarrels701 ; I do understand about housing crises, whether personally and by looking at the data and articles. But I do not believe my reply to you, which had details about this, is being posted so you can see it.
Irish people think they have it so bad.
Usa housing crisis is not that bad compared to Ireland or Canada ,you can still get houses for low 200k in very nice areas
EE: “Ireland has come a long way from the sick man of Europe”
Greece: “Why are you looking at me?”
Greece is so hopeless it is almost sad to see how Greece went from the birthplace of western science, mathematic, philosophy, and government into this?
Generally when a youtube video title contains a question mark. Its not true and its clickbait
Betteridge's law of headlines
Get DeArrow, one of it's features are viewer typed titles that should be more explanative of the content.
@@manana1444 DeArrow is awesome, thanks!
Its not their economy is a scam, its that GDP is an awful metric
People use it because it is easy, but easy for something as incredibly complex as a modern complex is just another way of saying "Dumbed down to utter pointlessness"
Ireland is onto something good, its basically free money, but they shouldn;t and I think don't expect it to last forever.
Yeah it’s free money at the expense of everyone else in the world. Globalism only works on the assumption that bad faith actors won’t just steal everything not nailed down
No their economy is a scam. It only manages to grow at the expense of the rest of the EU. It’s frankly amazing the EU has managed to hold together this long with how many nations in it are so openly self serving.
Try the surplus
I don't understand why Aircraft leasing is being painted as a bad guy here? You paint a picture that they are somehow responsible for budget airlines going to the wall?
Anyway, this system helped drag the country out of the dirt that it was in from 1920's up to the 1980's. It worked, and no one in Europe or the US had an issue with it until it did.
Look at the number of countries that brought in variations of the Irish IP system linking investment in R&D with subsidies and tax write offs. There are no good guys in this ...
Every Government is scratching around for more tax to fund excessive spending and waste to help keep them in power longer.
The "fixing" of the global tax system isn't about putting money into the pockets of their countries citizens. My2c anyway.
Because it is not a problem until it is. It denies taxes to the tax jurisdiction where the revenue is earned, or where the capital and IP are from.
If every country did it, every country would end up poor. When governements compete for corporations, the corporations win.
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.
6:44 please avoid using graphs like this, they are very misleading!
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.
Shhhh.... ; )
6:47 was there a need to cut off the lowest 10% from this graph's vertical axis? looks very misleading.
Yeah, they do it with the unemployment graph in this video too. I hate it when content creators do that
Im very glad that Im moving to Ireland soon :)
Luxemburg has the Same Business Model
The Irish gig with multinational corporations is a sleight of hand....however....Ireland has come a very long way and is an amazing country. Quality of life today is so far ahead of where is was 50 years ago its incomparable. I grew up in Dublin in the 70s and I have two teenage sons. Their life is 1000 times better than anyone experienced in the 70s. It's been a remarkable run for the country. Ireland is a very beautiful country with very kind hearted people, lets not beat on them.
Regarding relations with the EU, I wouldn't worry too much for Ireland: the "Commissioner for Financial Stability, Financial Services and Capital Markets Union" (sic) is Mairead McGuinness, an Irish Conservative politician...
Yes, many people come here with bright eyes of success and making money only to be crushed by the reality which is the cost of actually living here
I concur
Yep high standard of living turns into unaffordable at some point
All I see is a bunch of people walking around with money and nothing to spend it on. Ireland lacks amenities so it is good time to set up business or service. In the UK they have no money and too many options
@@infosuge even so, the small business owner is often outgunned and priced out of the market, and good luck getting bank loans nowadays
@@someirishguy1662 I get you but honestly I don’t really see that, out gunned if they have an idea or business plan not very well thought out or bad location. Example open up the only take away in a small town/ village you’ll clear up, lots of opportunities to be big fish in small pond. Theres some good schemes and grants for enterprise. Plus the old generation are letting go and dying off now so I’ve witnessed attitudes shifting and willingness to try new ideas. You probably couldn’t open the cool coffee shop in town as it stepped on the toes of the local oligarchs who owned the pub, hotel, garage etc but he’s gone now and his children are useless coke heads so it’s easy pickings
I'm Irish born and bred, and I've left with no plan on returning. Our public services have been degrading for 16 years creating signficant problems with crime and healthcare, our cost of living is INSANE. Entire economy is built around sustaining outrageous house and rental prices for retirees who rely on them as a pension, and encouraging multinational buy-in. All my friends are either living at home indefinitely or struggling to rent a mouldy room for outrageous fees. Wages have not kept up with cost of living at all unless you're Dublin-based and working an abnormally good job. Many immigrants arrive and are genuinely shocked by how dire things are here given what they've seen on the news. It's enormously frustrating and nobody ever hears about it. If you ever do another Ireland video, there are some insane market and governance dysfunctions you could cover related to the economic structure we've cultivated.
Where did you go to?
@@voodo0983 Moved to Spain. It wasn't our first choice but my girlfriend and I had been planning on leaving for two years and she got an excellent job in Madrid. Very happy we did. Life is a lot easier here.
@@TadghWagstaff Fair play to you, but I think your PoV is tunnel-visioned. Lots of people here live fulfilling lives and it’s a great country 🇮🇪 not perfect, but it’s pretty good
@@TadghWagstaff I'm a mechanical engineer from SA, looking to move to Ireland (most likely will work in wind turbine maintenance) You think its a bad idea or should I rather go to New Zealand?
Sounds a lot like NZ - but without the tax haven benefits & costs.
If your budget airline ordered its own aircraft it would have been waiting till 2035, clearly there business plan wasn’t worth the paper it was written on.
On another note we export frozen deserts to Australia because your wages are too high to manufacture them yourself.
There’s plenty of places that are cheaper to do business than Ireland.
What you don't know is Irish government made usa spend money in Ireland on their multinationals and not let all they money out of Ireland
A bit of an unbalanced video. For a start it suggest all the money from those corporations just leave the country but Ireland makes billions from corporate tax each year. There is also the massive numbers who are employed in very well paying jobs at those tech firms. Also it's a major player in pharmaceutical manufacturing. And it's not the Celtic Tiger anymore; that ended in 2008.
Would it be possible to speak a little slower? It’s sometimes a bit hard to follow the narrative this way.
It would be great if you started your Y-Axes from zero to give a clearer representation.
Perfect use of the word shenanigans in this video's context-ostensibly of Irish origin, but factually unknown. [slow clap]
The US GDP per capita hits a little more because the population here is so much more than the countries in the top 10. Some of those are borderline micronations and Singapore actually is. We're spread over all this area and people and overall we've pulled the most people into an overall high standard
Well, tell that to the teethless housekeepers from VA that I have worked with during my stay on Work and travel exchange for international students. I haven't seen such thing as high standard there.
Especially since the USA has places with completely different histories of socioeconomic development and a very diverse population. Nobody gives us enough credit for this but ourselves
@@Honzicek22You must be in a low income area then. Besides the north part surburban area of Virginia that DC workers live in, it isn’t a place known for its wealth.
The US has huge wealth disparities. Lots of billionaires pulling GDP per capita figures up.
If you look at median income instead, the picture's not quite as rosy, but it's still one of the highest in the world.
@@Unknown-jt1jo pretty sure our median income is ranked higher than our gdp per capita
Remember that they are being supported (behind closed doors) by The Netherlands (letter box tax heaven) and Luxemburg.
Well, I was expecting a GDP estimate of the actual Irish economy, with the shenanigans subtracted.
I hope your financial summary is more accurate than your historical one.
Big errors on a topic you clearly know nothing about devalues your thesis on what you clearly do know about, because many people won't separate the two.
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.
Wait, so Ireland is responsible for the failure of your shitty budget airline now? This video manages to mix poor historical analysis (no mention of the malignant neighbour that kept Ireland poor for centuries) and shallow/dated analysis of the current position. Yes, tax minimisation did bring US multinationals here originally, but there is a "real" economy behind this now, in as much as bullshit tech jobs are ever real. Also, the "sick man of Europe" tag was more commonly applied to the UK in the late 20th century (and at various other points in time France, Germany, Italy and Russia), never really Ireland - Ireland was too small and irrelevant for anyone to bother labelling it that way. The biggest economic mis-step after independence of the 26 counties was an initial push for self-sufficiency, which was politically understandable but economically misconceived. Anyway, do better.
We will regret a lack of self sufficiency in the future.
A change in the way the wind blows could send every multinational scuttling out of Ireland. What then?
@johnl.7582. Well said! And I used to think this was a quality channel.
He didn’t say Ireland was responsible for Bonanza, he used its as an example of asset parking in Ireland.
The whole point of the video is to point out the fact that Ireland is not one of the richest countries in world by GDP per capita because the numbers only exist on paper.
In many ways setting itself up for failure and irrelevancy in the near future.
Corporate tax is just money taxed from the buyer of the good, for good intention projects or to transfer wealth to politicians subsidiaries. I hope the Irish economy booms so that we can stop over taxation worldwide. No one spends your money better than you can.
Hey, where'd the leaderboard go?
The US corporate tax rate is 21%, not 35%. It's been this way for six years. This is not a small error in to make in this video.
The Trump presidency didn't exist, don't you know?
And all the business growth due to lower corporate tax is thanks to Biden for some other nebulous reason. ; )
The graph used to show the corporate tax rates across several countries ends at 2013, and the Google CEO congressional hearing he talked about he also said was in 2013.
He even talked about the Tax Cuts and Jobs Act near the end lol
Him saying that was not a mistake, this is not a small error to make in this comment
AI Mike is interesting. There's a little uncanny valley, but it's the best use of AI that I've seen from your channels. I will accept this usage.
i make just over 10K a month after tax, thanks to the lower tax rate on B2B services to big tech (instead of being an employee) i would have never thought this was possible before i migrated to ireland, coming from very average country myself; but quality of life here is a bit worse, for several factors...
You show me a pay stub for $72000, I quit my job right now and work for you.
Agreed. Standard of living is a function of past investment in infrastructure like housing, roads, rail etc, and Ireland invested very little in the past when it was poor. But, going forward it may catch up as government running large surpluses and investing heavily.
I feel like you've already made this video twice.
no leaderboard?
This is an embarrassingly poorly researched video. I cringed every time you referred to Ireland today as “Celtic tiger”.
Multi nations provide tens of thousands of high paying jobs here, generating huge taxes.
Airplane leasing was a genius move.
I’d love to see a video about this by someone not so biased.
Ireland's median income is 15th in the world, while its GDP per capita is 2nd which really drives the point home.
Nice defense of a socialist economy perspective. USSR worked on exploitation of their own people and natural resources, collapsed, people were hungry and faced famine. On Ireland nowadays almost no one faces hunger and famine anymore and this is bad why?
7:57 - Oh, that's an oversimplification. This has to do with a difference in US tax law as to where tax is booked vs other countries, and a peculiarity in Irish tax law created under Lemass in the 1960s (IIRC), where there was an assumption that foreign companies investing in Ireland would be opening factories, not doing the equivalent of a reverse takeover and redomiciling. Effectively Irish law makes the company tax resident in the US and US law makes the company tax resident in Ireland.
The US (and the US is the only country where this is a problem), could fix this overnight if they cared.
Bit on a clarification Ireland as its known today was 1937 and as you can see reflected in the 1937 Constitution the error had been realised. Ireland has very strong protections to private property rights. 1922 was the Irish Free State.
If ireland could find a way to use beer as an energy source instead of oil and gas it could solve the economic problems.
@EconomicsExplained at 5:10 you state that Ireland made a decision but left it out of the post World War II economic revival. What was that decision?
Staying neutral in WW2. It meant we didn't get any marshal plan aid post war
Double irish hasn't been a thing in a decade. And it actually relied on tax being paid in UK offshore islands, via the Neatherlands. Ireland was just a stepping stone.
I would love to see an EE video on potential solutions to global corporate tax avoidance.
The 15% minimum global tax rate sounds interesting. I'd also be curious about how other tariffs or taxes could counter it.
Why don't countries tax businesses at the point of sale? Would put an end to all of these loop holes
You mean like sales tax?
They do. The companies make customers pay it and blame the government.
@@zukritzeln No, tax the income going back to the company not the person buying
@@ukdeathwheelcompanies are already taxed on their published earnings that’s what corporation tax is
@@sirsurnamethefirstofhisnam7986 You seem to misunderstand.... In this video it is explained how companies pretend to be based from Ireland to avoid corporation tax.
If the income was taxed at the point of sale rather than in the country the business reports it is based then it closes that loop hole.
Why didn't you put ireland on national leader board. Do you not consider it a nation?
As an Australian what are your views on monarchy
2:28, EE, do you think copying other people's investment trades is good general advice for people to follow? Whats that data on that?
This video never mentions the highly educated English speaking workforce (the only English speaking country in the EU now) and how the Govt pressured these companies to hire locally in order to avail of these benefits.
I think the comparison the UK is disingenuous when the UK just invents new coutries like the isle of man or the caymons when it wants to hide money. How else is ireland supposed to compete. France does the same thing with it's territories but its fine when the big countries do it.
I swear, more of the stock footage in this video is in Northern Ireland rather than in the Republic of Ireland!
I wouldn't call it the 'Great Depression' tbh because it sounded pretty bad. I would call it the 'Terrible Depression'.
2:44 "and you'll get a random fractional free share worth up to 100 euro."
Uh what?! Why would I want a RANDOM fractional share?
Studied abroad in the Netherlands to find the tax module to be all about our corporation taxes back home 😂
That's surprising considering after the City of London the Netherlands is the largest tax haven in Europe.
Disposable household income per capita in Ireland (PPP) is 38.3k USD, essentially half of the same statistic in the US, lower than Britain and the EU average. It's people are as rich as Slovenians and Lithuanians. Nothing special, nothing to be proud of.
So many people with the "Ireland is a fantastic country" - likely living in their parents house like 68% of under 34s because wages are so insignificant compared to the cost of living, rent and housing. That's not to mention the nearly quarter of a million Irish youths who have fled as economic migrants to Canada, America, Australia in the last few years alone, back-filled by immigrants from developing nations to prop up the minimum jobs requirements of these multinational firms while producing the lowest value labour, like translational services instead of software engineering. Or having software engineers on 1/3rd of the salary of their American counterpart with double the taxes.
Crazy how potent this FDI narrative is. Part of the leaving certificate economics exam (end of school exams in economics) is to outline how great FDI is for Ireland. A narrative forced through every vein of the nation's psyche and looking at these comments, will take much longer to unlearn.
hey i am from india and getting a tech job of 50k in dublin would you advice me to come here , my skin color is brown and what about racism in ireland are you guys against migrants please respond
@@amangurjar9714 Migrants are being blamed as it is easy to point the finger at them and politicians find success when they do it. While it's not true migration is the source of the issues in Ireland, many people feel it is, so you will face a mixed sense of security. In a tech job you will be made feel welcome, but certain neighborhoods like East Wall in Dublin you will not find welcoming.
I will only warn you that 50k may go a long way in India compared to what it will do in Ireland. Your rent will be ~1300-1600 a month our of your ~3000 a month paycheck. Your electricity bills in new build apartments will be hundreds per month in the winter for heating. Your food bills will be a lot and you will be obliged to socialize with collogues on evenings that cost hundreds of euros. You will not be able to amass wealth while living this lifestyle in Ireland, you may however have a better standard of living compared to India. But it will be static and you will spend all of your income on living expenses.
Not Irish, but an Ozzy telling you the Irish economy is a scam when Australian house prices are 10 to 12x the medium income..... whatever.
Takes one to know one
When you take out the effect of the Multi-Nationals on our economy, our GNI per capita is still higher than the UK. This video seems to be extremely one-sided in its analysis of how the Irish economy functions, we’re not just a tax haven, and we’re also not straining our international relations anywhere near to the extent that’s implied.
@@SilentEiregni per capita also deflates Irelands economy. If the UK made its own measure excluding financial companies in the same way Ireland excludes aircraft leaders because they don’t actually effect the economy it would also look poorer than it is on paper.
My Da was the stay home & outlived his Sister in Sydney & his Brother in Lusaka ! We still have our dear Auntie Biddy who also spent many years in Sydney but returned to Seattle to spend her days with my Cuzz Seán & his lovely wife !!!
Didn't think EE was in the business of doing click bait titles and sensationalist videos with a clear bias, low point of the channel for me.
Financial Gymnastics isn't technically illegal, because the elite with all the power to enact policies will always want a way to skirt paying their fair share, even at the detriment of the nations they govern. They don't have to experience the eye-sore of bad infrastructure or struggle to access healthcare from their palatial apartments in Monaco.
The huge multinationals like Google pay zero tax yes but they also employ and pay huge salaries to a good few people in Ireland and those people vote.
The vid didn’t show the GDP leaderboard without the US companies - I thought was the point??
Only legends know that the previous video gave a hint about this video❤
Oh no, how dare they not rob and theive from anyone who tries to engage in voluntary mutual cooperation and exchange
Poor quality video, with a very poor take on irelands economy
.
There’s another reason that multinational corps will base in Ireland- European VAT rules.
If you’re selling goods/services cross border in the EU you don’t need to pay or charge VAT in either nation. Irelands low population means that Facebook can base in Ireland and sell advertising space across the EU but only need to charge VAT to Irish citizens.
They’re the sweet spot of small population, very stable politically and in the EU for VAT to be a serious consideration and factor in basing yourself in Ireland.
As the eurozone fractures with the current rise of the right wing across Western Europe Ireland will be less and less desirable to work in if you’re selling to the EU. Gonna be an interesting decade to be looking across at them that’s for sure!
The last sentence was that Holland is a partner in tax crimes just like ireland. Is having low taxes a crime? Only to communists. You have an Aussie accent, so your heritage is basically the tax avoidance and prison continent that Britain dumped all its lawbreakers on in order to save money, but now you say ireland is tax avoidance. Tax avoidance is not a crime. Tax avoidance is your heritage, and Britain's greatest export is independence days.
All I want is one completely honest, NO BS Economics explained video where he finally says yes, the government taking your shtt at whatever level they feel like they need is a complete scam, and Austrian Economics with libertarian politicians and a small government is the solution to every single problem that exists today.
I don't understand this part: what is the connection between the unemployment benefits and foreign companies registrating their income in Ireland? I suppose they don't employ many ppl there
You do know some of your B roll is from Northern Ireland, Portrush and Derry City .
Which brings up the question : is shenanigan an Irish word? And if so, did it have a different meaning before it meant trickery? So many questions, so little time!
The one thing that people don’t mention is Ireland’s is receiving 12% of the trillions flowing through the country because of this system. It could be used to strengthen our infrastructure if it was managed correctly. It makes our GDP seem high considering the revenue recognised in Ireland isn’t necessarily jobs here but is 12% of those trillions still not better than 25% of nothing because the countries recognise the revenue somewhere else?
The difference in real wealth in Ireland betwen the Ireland of today and the Ireland of the past is massively understated in this video. We're not as rich as the likes of Norway or Switzerland but it's undeniable the FDI has drastically increased living standards in Ireland. Corporate tax is about 30% of tax reciepts in Ireland. And employees of MNCs account for almost a third of total income tax receipts. Disappointed as normally the videos on this channel are of very high quality.
Too watered down to be considered accurate.
100B in 35 would at a 4% redraw rate it would pay about 60/month per person
That would be a nice UBI start!!
Interesting. But like listening to a 12 year old get through standing up in class as quickly as possible.
The ballance is that most if these companies are big employers in Ireland and therefore creat more incometax
I think the concept of GDP is not accurate to a countries real wealth.
Yes, as the thumbnail suggests, I too expected Ireland to be green, and was shocked to find out it in fact was RED.
7:15 "Wait a moment. I own the rights to Choco Munch."