Economic Crisis In Ireland

In the wake of 21st century many nations of the world have been facing a major threat greater than war and disasters in the form a newly developed economic crisis. This has moved many nations to take on drastic measures to balance the economy in all ways without affecting the governments from fulfilling the essential requirements of the people. Thus was formulated the idea of austerity. Austerity is the method of reducing public expenses in times of difficult economic conditions in a country by the government. Ireland faced a huge economic crisis in the year 2008. There are two main reasons for this, one among them is the collapse of banking and construction bubble and the other reason was the impact of austerity. The government’s economic

It had endured centuries of relative poverty, inequality and mass emigration. On joining the EU Ireland’s average income was 63 per cent of the EU average. It rose to 125 per cent and is still higher than the average, despite the depth of the crisis. Ireland had a deep economic crisis during the 1980s. In 1987, government, unions and employers agreed to work together to develop the economy and society. This was remarkably successful. Total employment in Ireland and average disposable incomes doubled over 20 years and economic growth rose by 260 per cent between 1987 and 2008. Since the Crash of 2008, each and every increase had fallen back. In the past decade, the underdeveloped residential market of Ireland has been drastically renovated into a highly developed market. The growth in population and the rapid increase in the income are the fundamental factors that contribute for the increase in demand for housing. The Irish economy was already effective with its full employment and so the labor for the construction boom where brought from other EU member states. The population increased by seventeen per cent and the number of households increased by fourteen per cent (central statistics office, 2007). Thus Ireland had a great development. Despite of high economic development in Ireland, these developments had a greater imbalance in later years. GDP has collapsed by over 13 per cent a year between 2008 and 2010, but the more accurate measure for GNP shows a much bigger fall of over 16 per cent in these three years. Domestic demand has been in free fall since the beginning of 2008. In accordance with the anti-crisis measures seen since 2008, unemployment in Ireland has risen steeply. The pattern of increase has been the same as that in Spain, and the weight of the increase has fallen most particularly on young workers. There are now two emerging problems on the employment front- one of youth