I was with Highlife in thinking that Ireland was doing good. I remember from geography class which I took last summer, that Ireland's low tax-rate and cheaper wages, plus no tarriffs from any other EU member country, were really helping their economy.
Assuming that the video that my professor had us watch was out of date, then what happened to Ireland? Why is their economy doing so poorly now?
Not sure, you would have to look at alot of different factors, a big one being individual income taxes or sales taxes. If you give the buisness a huge break but tax the workers to death then you will not recirculation of money because the buisnesses just put the profits in an account to invest where ever and the workers will only be spending on nessicities.
The big problem that the USA and europe have is that it is nessicary to have gov and taxes but only for certian things like infrastructure, etc once you start paying for massive social programs your sunk, no one with a job wants to pay for that. Its one thing to help the very sick and very old but every one in between needs to stand on their own 2 feet.
There are also union issues and gov corruption issues, you cant pay someone 40$/hr to stand around and hold a sign in a construction zone and stay cost efficient. It all boils down to a combination of the entitlement mentality and gov/corporate corruption which is really just an extention of the entitlement mentality. Everyone thinks they are worth a bigillion dollars an hour and thats just not the case, unfortunatly some have the political and/or corporate power to inflate their own wages at the expense of others (politicians, unions, corporations who are in bed with politicians, etc).
The problem is, because we have already had like 60 years of an uneven cash grab no one is on equal footing any more and we effectivly have a aristocracy, the only way for an aristocrasy to fall is through revolution becuase the trust fund babies who's daddy is a politicial is not going to just give back that money.
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