let me guess ricter and convertibility think raising taxes is good for the economy and believe somehow the 2008 recession depression in the middle of the chart is a counter to the growth seen by even Bono.
lets look at reality of low tax policies...
Ireland was transformed from one of the poorest countries in Western Europe to one of the wealthiest.
Disposable income soared to record levels, enabling a huge rise in consumer spending with foreign holidays accounting for over 91% of total holiday expenditure in 2004. However, the gap between the highest and lowest income households widened in the five-year period to 2004-2005;
[33] in response, the
Economic and Social Research Institute(ESRI) stated in 2002: "On balance, budgets over the past 10 to 20 years have been more favourable to high income groups than low income groups, but particularly so during periods of high growth".
[34] Unemployment fell from 18% in the late 1980s to 4.5% by the end of 2007,
[35] and average industrial wages grew at one of the highest rates in Europe. Inflation brushed 5% per annum towards the end of the "Tiger" period, pushing Irish prices up to those of Nordic Europe, even though wage rates are roughly the same as in the UK. The national debt had remained constant during the boom, but the GDP to debt ratio rose, due to the dramatic rise in GDP.
[36]
The new wealth resulted in large investments in modernising Irish infrastructure and cities. The
National Development Plan led to improvements in roads, and new transport services were developed, such as the
Luas light rail lines, the
Dublin Port Tunnel, and the extension of the
Cork Suburban Rail. Local authorities enhanced city streets and built monuments such as the
Spire of Dublin.
[37]
