Wearing O The Green - Road to the Middle Class

WHILE WE ARE celebrating St. Patrick’s Day, let us not forget to celebrate the Irish economy. Ever since its landmark economic reform the Irish economy has been showing a lot of green, and not just on St. Paddy’s Day.

The Irish economy doubled during the 1990s, with economic growth hitting 15 percent. Now growth is down to a modest 6 percent annual growth. And Ireland’s per capita GDP is $34,100, ahead of Britain, France, Germany, and Italy.

How did it happen? Well, we supply-siders point to a simple fact. The keystone of the economic reform was a modest reduction in income tax rates and a cut in the corporate tax rate from 50 percent to 12.5 percent. It all started in 1989 “with economic reform, tax cuts, welfare reform, more competition and a ban on borrowing to fund current spending,” according to Wikipedia.

Hmm. 1989. Could the US tax cuts of 1981, introduced by Ronald Reagan, a son of Ireland, have inspired the Oirish?

In fact here are the tax cut numbers, as we published here in June 2005.

IRELAND TAX FACTS	1985	2002	% change
Top corporate tax rate	50%	12.5%	-75%
Top marginal income tax rate	60%	42%	-30%
Top capital gains tax	60%	20%	-67%

The Wall Street Journal has its own little feature today on Ireland’s booming economy. And the Tax Foundation moans that while Ireland booms along with its 12.5 percent corporate tax rate here in the US We're Number One in corporate taxes.

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Christopher Chantrill blogs at www.roadtothemiddleclass.com. His Road to the Middle Class is forthcoming.

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Faith & Purpose

“When we began first to preach these things, the people appeared as awakened from the sleep of ages—they seemed to see for the first time that they were responsible beings...”
Finke, Stark, The Churching of America, 1776-1990

Mutual Aid

In 1911... at least nine million of the 12 million covered by national insurance were already members of voluntary sick pay schemes. A similar proportion were also eligible for medical care.
Green, Reinventing Civil Society

Education

“We have met with families in which for weeks together, not an article of sustenance but potatoes had been used; yet for every child the hard-earned sum was provided to send them to school.”
E. G. West, Education and the State

Living Under Law

Law being too tenuous to rely upon in [Ulster and the Scottish borderlands], people developed patterns of settling differences by personal fighting and family feuds.
Thomas Sowell, Conquests and Cultures

German Philosophy

The primary thing to keep in mind about German and Russian thought since 1800 is that it takes for granted that the Cartesian, Lockean or Humean scientific and philosophical conception of man and nature... has been shown by indisputable evidence to be inadequate.
F.S.C. Northrop, The Meeting of East and West

Knowledge

Inquiry does not start unless there is a problem... It is the problem and its characteristics revealed by analysis which guides one first to the relevant facts and then, once the relevant facts are known, to the relevant hypotheses.
F.S.C. Northrop, The Logic of the Sciences and the Humanities

Chappies

“But I saw a man yesterday who knows a fellow who had it from a chappie that said that Urquhart had been dipping himself a bit recklessly off the deep end.” —Freddy Arbuthnot
Dorothy L. Sayers, Strong Poison

Democratic Capitalism

I mean three systems in one: a predominantly market economy; a polity respectful of the rights of the individual to life, liberty, and the pursuit of happiness; and a system of cultural institutions moved by ideals of liberty and justice for all. In short, three dynamic and converging systems functioning as one: a democratic polity, an economy based on markets and incentives, and a moral-cultural system which is plural and, in the largest sense, liberal.
Michael Novak, The Spirit of Democratic Capitalism

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The incentive that impels a man to act is always some uneasiness... But to make a man act [he must have] the expectation that purposeful behavior has the power to remove or at least to alleviate the felt uneasiness.
Ludwig von Mises, Human Action

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[In the] higher Christian churches… they saunter through the liturgy like Mohawks along a string of scaffolding who have long since forgotten their danger. If God were to blast such a service to bits, the congregation would be, I believe, genuinely shocked. But in the low churches you expect it every minute.
Annie Dillard, Holy the Firm

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“When we received Christ,” Phil added, “all of a sudden we now had a rule book to go by, and when we had problems the preacher was right there to give us the answers.”
James M. Ault, Jr., Spirit and Flesh

Living Law

The recognition and integration of extralegal property rights [in the Homestead Act] was a key element in the United States becoming the most important market economy and producer of capital in the world.
Hernando de Soto, The Mystery of Capital

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