taylor mclaughlin

overall score: 77

world ranking: 9th

Irelands Flag

Population: 4.59 million

GDP: $217.82 billion

GDP growth %: -0.3%

GDP Per Capita: $39,457

Unemployment: 13.6%

Inflation: 0.5%

Foreign Direct Investment: $35.5 billion

7 Major Sources of Economic Progress

Legal System

The Constitution in Ireland is the basic law of everything. The Constitution contains 50 Articles and it establishes the institutions of the state. The Constitution is written in two different languages. Article 8 is the Article that provides the Irish language. The Constitution can only be altered through a referendum. The Constitution provides the three branches just like we do the and they are the Legislative, Executive, and Judiciary.

Competitive Markets

Ireland is one the most expensive competitive markets out there. The interest rate is adjusted by the measure of GDP. In all the do they make it very competitive in the markets so that they will make more money. Between 1975 and 2005 the average percent was 2.39 for the interest rate. The maximum was 12.11 percent in 1990.

Limits on Government Regulation

The top income tax rate is 41 percent and the top corporate tax rate is 12.5 percent. Some of the other tax rates include capital gains and value-added tax. 42.6 percent of gross domestic product equal government expenditures. The public debt is 123 percent of size in the domestic economy. The government also limits the speed limit on drivers with signs put of the side of the road just like we do in the U.S.

An Efficient Capital Market

The EU is pretty much a open trade and open to external trade but it does have some non-tariffs barriers that do exist. The barriers are mostly with international and trade and investment. EU members have a 1% tariff rate towards their trade. There is also a trade-weighted average tariff rate. Both tariffs include quantity, price, regulatory, customs, and more.

Monetary Stability

Monetary stability is based on two things. They are the weighted average inflation rate and the higher index values. The higher index values are able to make price stability without economic intervention. Price stability is great to control the state for a free market. It also helps the price control by the government.

Low Tax Rates

Low tax rates measure the tax burden imposed by government. The three quantitative factors are marginal tax rate on individual income, marginal tax rate on corporate income, and the total tax burden from the percentage od the GDP. income tax is charged from property, profits, and gains. A taxpayers liability can be changed by the amount of tax credits. The principle tax rate/credit is the personal tax credit. A resident in Ireland is liable to the Irish income tax.

Free Trade

Higher index values make banking efficiency and the independence from the government control in the financial sector. Major domestic banks have become mostly nationalized. Recapitalization and restructuring have changed the banking system majorly. Also higher index values make corruption level lower. It measures the efficiency of the bank system and tries to keep them all in line.

Irelands Economy Video Explanation

Irelands Government Video explanation

The video is saying that the banks should help people with their homes. They think if someone needs a little bit of help they should get help. Sense 2005 they have seen fast rate increasing for helps in homes. Moral hazard they said is very interesting because they have had many people in banks not smart or even home owners that haven't made the right decision. But, there are people that have made all the payments and need help sometimes. They also said if the bank changed, the rates would be better and money would be saved.