Remember that somewhat offensive, but also somewhat apt description of the Irish 2015 growth figures that Paul Krugman came up with? Well, le's call it the 'L-economics'. Now, the CSO recently published the latest figures (through 3Q 2019) on the gross value added in the Irish economy, as decomposed into 'Foreign-owned multinational enterprise dominated' sector and 'Other sectors excluding the foreign-owned multinational enterprise dominated sector'. So here is a chart you do want to see, plotting the share of the 'Foreign-owned multinational enterprise dominated' sector of the total gross value added across all of the Irish economy:
Now, see that massive spike in 1Q 2014? Aha, that was Krugman's 'L-economics'. Back then, the share of the MNCs' [dominated sectors] in the Irish economy jumped from 2014 annual average of 26.4 percent to 2015 annual average of 38.36 percent. And then we thought, surely, things are going to calm down a bit at the Silicon Docks, right? Not quite. In 2018, the share averaged 42.4%. Boom! And in the first three quarters of 2019 it jumped to 44.1 percent. Double Boom!
Comically, or sarcastically, or may be... ah, neah... never mind. At the last 7 quarters growth rates, folks, by 2035, three quarters of the Irish economy will be... err... Krugmanited. So, OECD, G20 and the rest of the global tax justice worriers, there's nothing to see on the shores of the Liffey.
