Ireland - The High Cost of Living in the World’s Richest Country
Vložit
- čas přidán 1. 06. 2024
- According to GDP per capita stats, Ireland is 3rd richest country in the world. Even using GNI it is 4th largest. But, why do 70% of young people considering emigrating from a cost of living crisis?
► I have a new channel focusing exclusively on European and global economies, with more videos like this, please check it out!
ttps:// / @economicshelpglobal-s...
Sources:
www.irishexaminer.com/busines...
www.cso.ie/en/releasesandpubl...
• 70% of young people in...
www.irishtimes.com/ireland/so...
www.bloomberg.com/news/articl...
www.irishtimes.com/life-style...
www.irishtimes.com/business/e...
About
► www.economicshelp.org was founded in 2006 by Tejvan Pettinger, who studied PPE at Oxford University and teaches economics. He has published several economics books, including:
► Cracking Economics. www.economicshelp.org/shop/cr...
► What Would Keynes Do? Amazon amzn.to/2xShqq4
I have a new video which looks at the problems facing the German economy. czcams.com/video/OKuCtXWWDpk/video.html
Speaking as a Dublin local, fresh out of college, and making less than median income; I’m optimistic. We’re not facing any issues that are insurmountable and I’ve seen genuine progress in many areas from housing to health. Tbf though, it’s my job to track these things so it’s not reasonable to expect the average person to notice it because it is very gradual. But I am genuinely optimistic about my future here. The foundations are here to build a robust economy and society 🤝
It will take at least 15 years of mass building to catch up with the property shortage and make rents/property prices affordable. At the moment they're not even building enough housing units annually to avoid the housing situation getting worse, never mind actually improving it. We also have a massive infrastructure shortfall, most notably in public transport. We're in big trouble, especially with a steep fall in corporation tax receipts likely on the horizon within the next few years.
That's good to hear and I agree that, unless you study the numbers, positive changes are so gradual that they are almost impossible to "feel". For example, people here in the UK very much notice that shopping items have jumped up in price over the past two years. And BTW friends of mine visiting Dublin were shocked at the 10 Euro pints of Guinness in town these days! But, if a recovery ever came here in the UK, we would be unlikely to see price drops in shopping items - that never happens. Maybe petrol prices are an exception, but even then the falls following oil price drops never seem to mirror the rises after oil price rises. That seems like a good topic for a video all of its own 🙂
Good for you. With the whole work from home and remote working trend - I wonder why someone can't get a job with a Dublin based firm but live in a smaller more affordable town. Clearly the government can't or won't build enough homes - activists should lobby for tax increases for Dublin based firms and tax breaks for those who relocate to smaller towns. This policy doesn't require anything but passing of legislation.
What do you mean, fascist agitators have been at our doors for years now
Yes agreed, its quite impressive really.
(Fellow Dub)
100% mean this in a nice/constructive way as I really enjoy these videos - the music at the start needs to be quieter or remove it, it’s too loud against your voice speaking. Otherwise great video as always :)
I agree - background music on YT videos makes them sound tacky.
Thanks for feedback, good tip
I like your videos. Concise and well rounded.
But I feel you don't need the music in the background. Just your voice it ok.
Nice step adding background music at the start but it could be a little quiter, as it feels like its battling with the foreground sounds (your voice). Nice work otherwise as usual though!
Thank you!!
Ireland is only getting now the infrastructure that is common in western Europe. On paper it seem wealthy buy in reality for most folk its not. Wages on average seems high but everything is relative to the cost of living. In the round it's a good country, I would never not want to leave here
My relatives live in Co Donegal - about 5 miles from the Northern Ireland border. They do all their weekly shopping in the north and big ticket items (DIY goods, home electricals) are bought in the north for a very noticeable discount.
@@ep1929I live in Tyrone in the north, right beside Monaghan in the south and I literally hardly ever do any shopping in Monaghan, the prices in the south are just so high, and then being from the north our wages are lower up here, so the south seem extra expensive to us lol
@@Deranged316 yes people living in the south near to the border are lucky to have easy access to cheaper goods.
@@ep1929 Yeah but there are also people commuting from the North to Ireland to work for higher wages. The people in the North living in a deprived area, with little to no Government investment..
@@roryoneill9444 it's a win win for a lot of people for sure.
A couple of additional factors deserve mention to help explain Ireland’s shift to a high tech growth economy.
1. Beginning in the 1960s, there was access to free secondary education and tuition grants for third level education for many students. Also, several technological third level institutions were established. Combined, these measures led to a high proportion of young people choosing STEM education. They are very employable in the tech sector.
2. Ireland has enthusiastically embraced its membership of the EEC and now the EU. At the outset, it was one of the poorest states, with bad infrastructure. European funds were used to build that infrastructure, particularly roads and motorways.
3. Historically, Britain was Ireland’s largest export market. While a shift had begun decades earlier, in 2016 after the Brexit referendum, Ireland immediately began planning for new market conditions. Ports, airports, customs services were all enhanced. As a result, Ireland has stronger links to continental Europe. It also benefits from now being the primary English speaking country in the EU.
If Ireland is so successful I do not understand why I see the low cost supermarkets like Aldi & Lidl appearing all over the country. This is a sign to me that people's personal finances are not as good as they should be. Also this low corporation tax advanatage will not last forever.
@@VincentRE79Well the country isn't so auccessful, from what it used to be it is but overall compared to other economies with similar cost of livings it's terrible. You can't fix a whole nation in 30 years. The fact that there arent more people emmigration to the likes of Switzerland, Norway, Denmark, The Netherlands, etc actually astounds me. You simply don't get your bang for buck in Ireland, it's a good country overall but too expensive for what it is. Public transportation is very lacking, everything about the country is extremeley mediocre to be honest. It usually ranks withtin the top 20 in most things like education, etc. Some things it ranks very highly in like democracy, but I don't think that metric is entirely representative of reality as Switzerland which is considered to be the most democratic nation is ranked lower than it ahould be due to direct democracy.
Like stated in the video Ireland has a big housing crisis, it's healthcare isn't even free and it sucks, most doctors and nurses are leaving for the likes of Australia and The USA. It still has ethnic/theistic tensions, especially in the north, so on and so forth.
The metrics I've seen ireland rank relatively highly in overall are air quality, water quality, GDP per capita, HDI, democracy, freedom of press and safety. These are just metrics though and are subject to bias and misreprestation but this demonstates that Ireland is pretty good overall.
It's simply suffering from poor planning, rapid development/growth, idiocracy and greed.
I work in the health sector not in Ireland, left in 09 due to no jobs. Visited in 2018 could see thing we’re picking up, went back in 2022 and yes the economy had certainly picked up. Looked at getting back into the care sector and what a shambles it is. Was better off returning home and driving a digger then working for the HSE. Can see Ireland is just not growing in sectors which is going to hit down the line.
The HSE has always had an issue with staffing due to poor management..
@@roryoneill9444 that it had, but satellite services were decent e.g. GP, physio, OT ( not so much) and dental ( I know dental is not HSE). But a good 3/4 of these services were 6/12 months before face to face. The population has grown massively in the last 30yrs, Ireland still has plenty of room to grow . It will just take seriously long investment into public service for ground personnel and not to mention the dreaded management system.
@@gingerssmelllikecabbageand8708 GP is about a few minutes to an hour if you wait in an emergency but you should both an appointment and same with the dentist. OT and other consultants are over-worked in the HSE but it you go private it is much quicker. The Public/Private system works in Ireland, however, there are too many people showing up at A'n'E for issue that shouldn't be in the Emergency Department particularly for example mental health issues or homeless addicts, which can't really be treated in A'n'E..
GDP doesn't reflect on the average wages. We're not all that wealthy, no different to any other North Western European country.
GDP per Capita is a measure of what the economy produces per person in it, not how that wealth is distributed. And much like the UK and every other country, such measures don't really relate to one's lived experience. The picture is far more complex Tejvan describes. Gross National Income per capita, and the numbers in each segment of annual income level better describe the distribution of income.
I used to work with some young Irsh people in Melbourne Australia who left Ireland to get away from the cost of living vs their wages in Dublin for just about the Highest average wealth country in the world at that time, a decade ago. Most of them went home in less than a year on account of the even more obscene living and housing costs than they had escaped from in Ireland. Several of them were up to their necks in mortgages from Irelands' earlier house price boom. A nation's apparent wealth has little to do with average living standards. My wife and I are far better off now in the UK than we were in Australia and that is now in part time low wage jobs as were lucky enough to have a modest house paid off.
"GDP per Capita is a measure of what the economy produces per person in it". False. The government can borrow unlimited amounts of money by either printing or going to the money makes and that will count towards GDP. If I borrow 3 quid to create 1 quid of growth, it'll make GDP look good, but it spells doom in the long term. Irelands GDP is fake due to American corporations domiciling there.
We are wealthier than in the North East of the Island of Ireland, and that is not even the poorest part of the Uk anymore.
Were definitely not the 3rd richest but definitely 6th or 7th as our GDP is about 25% over inflated.
Fact is life isnt easy in any country anymore.
That said when we fix our housing issues things should be much better.
It looks like Ireland is fourth under GNI. There was a Prime Time report shows how people were asking for half a million to withdraw a planning complaint, this is blackmail and there is also the NIMBY complaints, who could blame them after all who would want to live need a bunch of Tallaght thugs. There were strange complaints made about the LNG and power plant in Kerry, which Ireland needs, and the Government said they were looking into it..
I have a problem telling people its not the money, its what it can get you that matters. maybe we should get off price level stability and concentrate on productivity normalisation
Your comments on restrictive planning and regulations handicaping housing supply are spot on. This is not by accident. Keep in mind, IRL has no effective means for wealth accumulation for families outside the family home. The vast majority see the home or a second home as a means to build net worth. Of course, some ppl have investments in stocks and bonds, but it is tiny compared to the US for example. Many ppl see new housing, and apartments as a threat to their existing property values, with new supply theoretically reducing the vakue of their main asset. While this fear is wildly overblown, many Irish have sharp memories of 2008 -13 crises when property prices crashed, leaving 100s of thousands underwater on their mortgages. That was grim, and no one wants to repeat it.
Instead, the govt needs to create a savings system similar to that of the US with a defined benefit contribution system ( as opposed to the traditional pension which has gone away) for retirement. And, cost effective options and education on how to invest in equities and bonds. In parallel, they must invest in rail and apartments with dozens of new town required. Irish ppl need to get over their dream of a detached single family home as a starter dwelling, and accept higher density living. If buildings don't go up, rents will not come down. Im gobsmacked by the fact that the housing situation is not being treated as a national emergency, which it certainly is.
Once the EU force tax harmonisation the benefits of such will quickly evaporate.
Please do an UPDATE to this piece as it paints a picture not quite accurate, given the rapid changes, esp factoring in the new legislation on PLANNING, most comprehensive piece of legislation to pass thru Govt in decades.
As an Irish citizen living in Ireland with experience of other countries across europe, I can say that costs of EVERYTHING have gone up EVERYWHERE,- but I doubt you will find a Govt. ANYWHERE in the EU that is throwing EVERYTHING at the housing issue. The issue is SUPPLY and this is NOT an insurmountable challenge. More people entering than leaving simply means we need to return to building 50 to 60,000 units minimum than the current 30K-plus. The challenge is not €€ but mainly planning and of course not enough builders. So Ireland WILL work its way through this 'crisis' ...and as it always does, come out the other side better and stronger with an economy that will continue to develop and indeed thrive.
What's the use of high gdp per capita if that income has no value
Wages/Salaries in Ireland are also high.
@@roryoneill9444 but does that wage/salary have any value if the living cost is so high.
@@Jamal-Ahmed786 Yes, it has Ireland has some of the highest saving ratios in Europe but there is an inflation issue and rents are high due to high demand and low supply..
Not just Ireland uk, canada, australia, new Zealand all will face the same problem
We are classed as the working poor here in Ireland.
Yeah by the "I couldn't be bothered" working class, who draw the dole and get everything for free, 25,000 free houses were given away in 2021/22, so many that 5,000 were refused on grounds as pathetic as the house didn't have parking (obviously for the Free car, the Irish Tax payers paid for) or it was too close to my ex-partner..
Who is going to build these new houses ?....cold, rain, muck, poor conditions and over regulated construction site. And its definitely not a high status job 😂...
The number of persons engaged in Construction in Ireland was 167,300 workers in 2022 according to the CSO. So I assume those people..
NO need for music
The bottom 20% are doing worse of course but still 60% better off than the bottom 20% in the UK according to the Financial Times
Correct ✅👍
Who would have thought that low taxes attracts investment and business activity and good jobs 🤷♂️ and high taxes do what ? 👂
*PEDANTIC CORRECTION* the GDP of Ireland on that chart is 127% higher than the UK.
UK $45.4k Ireland $103.3k
and salaries are basically same
The average person in Ireland is living a nice life. It is all relative, like anywhere in the world. But on average people are well off in Ireland. A few things to note. If you are earning an average or below average salary, you are better off in a smaller town or even a rural area because of the cheaper rent. Dublin and Cord have other advantages. There are some great jobs in the big multinationals which pay very well and have amazing benefits.
There are a lot of people complaining about the salaries, cost of living, the standard of life in Ireland. However, the same people doing this travel abroad at least 4 times a year, buy the latest iPhone almost every year, buy the highest-spec laptop, drive almost a new car, and eat out in a restaurant at least once per week.
I think you mean Dublin and Cork.
Very true about Ireland but I wouldn't like live in the UK ever again for any money after I move over in 1999.Hell nooooooo.
'Hell nooo'?... Why?
The single factor causing problems here is the housing crisis.
This is, arguably, a problem of success, because demand has shot up due to our economic transformation.
It is also a massive failure of imagination/mindset among Irish politicians and administrators. As Dessie O'Malley said something along the lines of "Politicians of my generation were supposed to manage decline. We were not mentally equipped to handle a successful economy."
There are many factors in the mix when it comes to the housing crisis. One is/was the adoption of the Thatcherite policy of selling off council housing without any replacement.
Another is the planning system, which allows anyone, living anywhere in the country, to object to any development anywhere in the country. This has led to professional objectors, who object in the expectation that the developer will pay them 'Fuck off money'. If they are not paid off, building can be postponed for long periods.
Yet another is our housing density which is far too low.
Add in the massive recent inflation on theist of building supplies, and energy, and a chronic shortage of skilled labour after the Irish Property Bubble burst, and it is safe to say that we will not see this resolved completely very soon.
Progress is being made, but it is so slow....
These numbers look rigged.
Where to go ? Sydney, New York just as bad , London is a basket case ....better off staying in Ireland with family and friend networks and getting a job in tech.... Theres no 'post war period' - Ireland wasn't in the war thankfully.
True, if your have ties to the country it's better of staying, if not and your looking for something better/new its worth moving. However Ireland is still a developed economy and pretty decent overall.
The chart on the screen shows Ireland's GDP per capita at well over 100% higher than the UK's, not 50%.
2:36 That's also not what the chart shows! You say it's soared from 3.5 million over the last 23 years, but the chart shows population in 2000 at around 3.8 million
I noticed you didn’t have a word to say about all the new slaves pumping in from other countries
I don't think it's right to compare annual income with wealth. Ireland, from a cumulative point of view, is not rich!
Touch of schadenfreude from the UK here, I'm afraid!
There’s less and less money in Ireland as every company wants to cut down hours and hours equals money.culture of living and working is low.low quality of living.
@tomislavpogacic
"There’s less and less money in Ireland as every company wants to cut down hours and hours equals money"?
Meanwhile, back in reality, the minimum wage increased again as of January 1st 2024, to €12.70/hr.
And most people are on higher rates than that, starting.
Meanwhile, companies are crying out for workers.....
The rest of your post is equally divorced from reality
@@gloin10 min.wage was 10.5€ I think.12.7€ is new age,maybe you should be looking the date?companies are not crying out for workers as per every job position there are applicants.I know that every Irish company easily reduces employees hours as business goes down.not the case compared to Germany.divorced from reality?in Germany min.wage is higher for years.and have more accomodation,of higher quality.what is the price of a room to rent in Dublin?and how many people apply for a room?one gentleman said to me that there were 74 inquiries for the room and room was a year ago 650€,that’s cheap today.why are people looking for the room?everything is fine?right?
Divorced from reality.Dubliners are second worst people in Europe thats a pole for a fact and it meant for people in bigger cities.so,to keep things in reality as some people have a experience of different reality.rate of violence is going nothing but up.no?chance you will get bullied by a woman as a man is high.believe me.again.back to reality.
It’s good to take a look at the time when post is placed.back to reality.i had German women for a friend.amazing people.some are rude but they are for real.authentic people.amazing people.
I always wondered what the reality was for the average person in Ireland after seeing such high GDP.
Its would seem to be markedly different from Switzerland where people generally are minted.
Never been to Ireland or N.Ireland. Is it worth a visit?
They are both stunningly beautiful and definitely worth a visit. One of the crimes of the London centric UK tourist board is they allow the image of NI to be terraces wiht murals on the end when in reality - and I only discovered this on a CZcams video - the countryside is STAGGERING. Just search for "scenery northern ireland"
Ive been all around the coast of Ireland and its just idyllic.
"Its would seem to be markedly different from Switzerland where people generally are minted. " I went there with the school in 1981 - a Marathon [snickers now] was £3
@@piccalillipit9211 Thanks, I'll add it my list of places to visit.
Yeah. I was in Basel earlier this year £19 for a burger, fries and drink. It's painful 😖
@@sidkings - Its astonishingly expensive.
@@piccalillipit9211min wage in most of Switzerland is circa £20 per hour.
@@stephanguitar9778 I know that the prices are mostly affordable for the people there.
He obviously has never been to Ireland!
As in general, if you are in the top 20% you are laughing all the way to the bank. If you are in the 80% then GDP is irrelevant.
B o valor da passagem e o valor da entrada da passagem da manhã e o valor da entrada da passagem da manhã e o valor e horário normal e
V se for só r viu o valor da passagem e o valor da passagem e o valor e o e e horário normal e o valor da passagem e horário da manhã r viu o valor da entrada e o e
dump...
Ireland is an example of the failure of capitalism, especially the laissez-faire variety created by large multinational corporations. We need a new economic system which addresses inequality & sustainability, rather than this system which produces wealth exclusively for the upper classes & foreign investors.
This is nonsense. You try telling the Irish they're rich.