The Rise of Ireland
Ireland, which was once a poor country in Europe, has now become wealthier than the United States, the UK, Kuwait, and even Qatar. However, despite being one of the richest countries in the world, many people in Ireland are choosing not to live in its urban areas. This begs the question: why?
The Transformation of Ireland
To understand why people are leaving Ireland's wealthiest cities, we must first explore how Ireland became so prosperous. Just 150 years ago, Ireland was plagued by poverty, hunger, and death. The Great Famine, also known as the Irish Potato Famine, took the lives of 1 million Irish people and forced many others to seek refuge elsewhere in the world. The country's population has never fully recovered from this disaster, making Ireland today the least populated country in Europe and the world.
In 1922, Ireland gained independence from British rule, but its economic conditions remained stagnant for the next 50 years. It wasn't until 1973 when Ireland became a member of the European Economic Community that it saw an opportunity to change its fortunes. Being part of this community meant that Irish companies could sell their goods to all member countries and only pay taxes in one country. Ireland's leadership saw the potential in this legislation and announced that foreign companies coming to Europe for business would be encouraged to set up their offices in Ireland. The government even offered subsidies and cheap land for these companies. This announcement attracted major corporations, and economic activity began to thrive. Ireland's economy was growing faster than Singapore and South Korea, earning it the nickname "Celtic Tiger."
The Financial Crisis and Its Effects
In 2008, the global financial crisis had a significant impact on Ireland as well. However, Ireland responded by reducing tax rates to zero, which further attracted highly qualified individuals for job opportunities. Ireland became known as a hub for tech companies, akin to Silicon Valley. The economy was booming, but then something changed.
The Reality of Ireland's Wealth
While Ireland's GDP per capita is impressive, other statistics paint a different picture. For example, when looking at Ireland's average annual salary, it is lower than Scandinavian countries. The salaries in Ireland are comparable to those in the Netherlands, Belgium, and Austria, but the GDP of these countries is only half of Ireland's. In addition, Ireland ranks 177th in household disposable income, indicating that the average person has less income to save compared to many European countries.
Furthermore, Ireland is facing a housing crisis, similar to Canada and Australia. The housing policies in Ireland are flawed, making it unprofitable for real estate developers to construct new homes. This shortage of housing has caused skyrocketing prices, especially in Dublin, where people have to wait in long queues just to view a rental property. The healthcare system in Ireland is also overcrowded, as many Irish doctors seek better salaries in other European countries. This leaves a heavy burden on the remaining doctors, resulting in long waiting lists for patients.
The Need for Sustainable Progress
All in all, Ireland's success story is heavily dependent on an artificially inflated GDP figure. Most economic activities in Ireland are generated by foreign companies that repatriate their profits. These companies primarily employ foreign workers, and the majority of Irish people work in industries such as agriculture, retail, sales, and mining, which offer lower salaries compared to the tech giants. The current average annual salary in Ireland includes the salaries of foreign workers in the tech industry, which inflates the figure. If we consider only the salaries of Irish workers, the total figure would be even lower.
It is crucial for Ireland to strengthen its domestic industries for long-term success. Relying solely on foreign investment may improve economic figures, but it does not contribute to ground-level progress. As Gulf countries are also introducing taxes due to the anticipated decline in oil revenues, Ireland's unique advantage may disappear. Many foreign companies may decide to move their operations back to their home countries, resulting in a significant blow to Ireland's economic progress.
In conclusion, the reasons why young Irish people are leaving their country are twofold. Firstly, the reality of Ireland's wealth does not match its GDP figures, as average salaries and standards of living are lower compared to many European countries. Secondly, issues such as housing shortages and an overcrowded healthcare system have made living in Ireland less desirable. Ireland's success story is admirable, but to ensure sustainable progress, the country must prioritize the development of its domestic industries.
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