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0 pointsmike_hearn1mo ago0 comments

> Ireland already has a competitive economy

Ireland's economic statistics are so badly distorted by US companies routing money there that there is an entire subfield of economics dedicated to trying to figure out what Ireland's real economic state is, called "Leprechaun economics". A common adjustment made by economics researchers when studying the EU is to just subtract Ireland entirely.

https://en.wikipedia.org/wiki/Leprechaun_economics

https://www.cfr.org/articles/leprechaun-adjusted-euro-area-g...

https://democracychallenged.com/2025/05/14/irelands-phantom-...

> The key to understanding this disconnect is a number few outside Ireland pay attention to: Modified Gross National Income, or GNI*. Unlike GDP, which counts all activity happening within Ireland’s borders, GNI* adjusts for the distortions caused by the huge presence of foreign multinationals. And the gap is enormous. In 2023, GNI* was just €291 billion — meaning more than €219 billion of Ireland’s reported output never truly flowed into the Irish economy at all.

When looking at Ireland's own economy without the influence of US tax transactions, the economy shrinks by nearly half.

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s_dev1mo ago

I'm 38, I was fully aware of this when I was 15 years old in Economics class. This is simply a problem for people who go around measuring everything with GDP and demand the world adjust to that. You've run in to the limitations of GDP.

There is no single indicator of wealth, measuring wealth requires a number of measures to provide context and contrast. The Irish economy is largely comparable to the Danish economy. I'd say the Danes sneak in just ahead of us but well behind Norway and Switzerland.

Ireland for example is wealthier than either the UK or France on a per capita basis. The GDP of Alabama and Bavaria, Germany per capita is largely the same, yet you would be insane to think Alabama was in anyway wealthier than Bavaria.

I stand by my comment.

The Irish economy is competitive and your little 'gotcha' that is a common trope across various shallow sub reddits, increasingly at an alarmingly peevish rate simply doesn't persuade me or others who are interested in understanding these things at a deeper level. There is a time and place for that discussion and it really isn't this thread.

mike_hearnOP1mo ago

If you know that you should make it clear when you talk about the Irish economy, because most people don't.

Danish GDP per capita is about $71k nominal. According to the Irish Central Bank mGNI per capita is a fair bit less than that at around $65k.

https://www.cso.ie/en/releasesandpublications/ep/p-mip/measu...

However, that assumes the modified GNI measure is accurate. If you believe these numbers the Irish became nearly 40% wealthier between 2020 and 2023. That would be a truly unprecedented spike in wealth never before seen in history, and I don't think anyone believes it. It's much more likely that their attempts to subtract the distortion of American corporate success from the Irish numbers aren't successful. Tech firms did great during the COVID period whilst the average person... not so much.

direwolf201mo ago

It's nice that they still get taxes on that money, and use it to support artists.

wooger1mo ago

They don't get the appropriate taxes on that money, which is the whole reason those US companies route money there in the first place.

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