We have been told that we are ‘all in this together’, everyone has ‘shared the pain’ and that the wealthiest have borne a 'disproportionate amount of the burden'. Is this so?
Throughout Europe profits (net entrepreneurial income) in non-financial companies fell in 2008 as the recession set in. They started recovering in 2009 (in Ireland they started recovering a year earlier). In the Eurozone profits are still below their 2007 level.
Not Ireland. Profits here have risen by 21 percent since 2007 and are growing at a much faster pace than almost anywhere else in Europe.
Of course, some might point out that these ‘Irish profits’ contain a lot that were imported for tax purposes – i.e. they were generated in other economies. How much? The Government won’t measure this because it would have to spell out how much it is siphoning off tax revenue from other countries, which wouldn’t go down well abroad.
So, whether home-grown or blow-in, Ireland is the place where profits grow. And grow. And grow.
Some people get the gain while most get the pain. Welcome to recovery ‘Irish style’.