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Politics : American Presidential Politics and foreign affairs

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From: TimF	5/19/2010 3:20:34 PM
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Exploring Ritchie’s logic May 19th, 2010 · 5 Comments This is an amusing piece from our favourite retired accountant. But this artificiality will not be the end of the problem. Copying the culture and failed policies of the Republic will be the biggest disaster for Northern Ireland. As the Republic has now resoundingly proven, building an economy on the basis of corporate tax rate competition does not work. That policy has virtually bankrupted the Republic. Why on earth would anyone want to replicate it? Note the logic. Ireland had/has low corporate tax rates. Ireland had/has an economic collapse. Therefore Ireland’s economic collapse came as a result of low corporate tax rates. It’s that last sentence there which is suspect. Suspect as in “batshit crazy”. Ireland’s problems came from being in the euro, meaning interest rates entirely inappropriate for a real estate bubble. But of course for Ritchie the idea that the State doesn’t take a substantial portion of economic activity is the cause of all troubles. 5 responses so far ... Neil Craig // May 19, 2010 at 4:33 pm Ireland has gone from about 60% of UK GNP in 1989 when they started cutting CT to 140% a few years ago & is now down to over 130%. And that depends on us borrowing 12.5% of GNP & them not. Would that Britain were suffering from such failed policies. Ireland’s minor problem is that they are constrained by the Euro while our £ floats. Their major & largely unnoted problem is their shortage of electricity capacity. They produce 1kwh for every $7.75 of GNP, the highest in the developed world. The world average is $3.90, China roars ahead at $2.45 & Britain is 4th at $6.14. timworstall.com

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