Once again, Reagan leads the way
In the sorry, socialist mess that is the European Union economy -- double-digit unemployment, double-digit inflation, and an anemic annual growth rate, there is a shining star. Two actually, if you include Luxembourg. But tiny Luxembourg is a unique case and has always taken care of itself, so let's take a look at a true marvel: Ireland.
Yes, Ireland is showing the EU how to do things right. This after several centuries of abject poverty, subjugation by a foreign power, ridicule, famines, civil wars, and the Irish Diaspora that for too long stripped the nation bare of its best and brightest sons and daughters, contributing mightily to the American economic juggernaut. After Luxembourg, Ireland enjoys the highest per capita Gross Domestic Product of any of the so-called economic powers in Europe.
Borrowing, spending, and taxing
How did this miracle occur, you ask? What magical leprechaun dust was sprinkled over the Emerald Isle to bring about such fantastic economic success? See if what follows sounds familiar:
After the Irish economy hit rock-bottom in the 1960s, far-seeing leaders began to realize that doing business the "old way" - meaning a socialized, European-style economy - wasn't working any more. Sheepishly following the European economic model brought on years of protectionism, fiscal mismanagement, and a country going broke by the late 1980s. Deputy Prime Minister Mary Harney related that "We went on a borrowing, spending and taxing spree, and that nearly drove us under. It was because we nearly went under that we got the courage to change."
In the early 1990s and out of desperation, the government teamed up with trade unions, farmers, and industrialists and began a radical, jointly-planned program of fiscal austerity, slashing corporate taxes to 12.5 percent, moderating wage demand, and embracing foreign investment. They chose, in their farsightedness, to embrace and implement the phenomenally successful strategies championed by President Ronald Wilson Reagan: Reaganomics.
Proven to succeed
The industrial development and tax policies changed to facilitate economic growth were so favorable that dozens of major corporations queued up to expand into Ireland and take advantage of its hard-working and educated labor force. Today, Ireland is an economic model for the rest of Europe and its active, skilled workforce has doubled in just ten short years. Doubled! Unemployment? What's that? Uh-oh, you say. What if the rest of Europe does what Ireland has done? Won't they become competitive and potentially harmful to the U.S. economy?
Relax. Do you honestly believe that France, Germany, Britain, and the others will emulate Ireland and embrace free enterprise without government price controls or subsidies, union domination, and outrageous, back-breaking social entitlements?
Ronald Reagan visited Ireland and the county of his ancestors several times; I'm sure he would be very pleased indeed if he could see all of the Irish eyes that are smiling today.