One of the World's Richest Nations; Ireland

The bursting of the U.S. housing bubble in 2007 had a significant impact on Ireland. With the largest real estate bubble globally, housing prices plummeted by 56 percent, leading to widespread defaults and bank crises. The Irish economy shrank by almost 25 percent, and the country was on the verge of total collapse. However, a bailout from the IMF worth 67 billion dollars helped prevent a complete economic breakdown.

In 2013, Ireland was struggling economically. However, in the past decade, it has experienced a remarkable transformation from one of the poorest countries in the world to the second richest, according to the International Monetary Fund. Despite economic theories suggesting otherwise, Ireland's GDP per capita in 2021 was $101,509, surpassing larger and richer nations like the U.S. and Qatar.

Ireland experienced a severe housing crisis in 2007 that nearly caused its collapse. However, in recent years, the country has been growing at an impressive rate comparable to developing countries. Despite not having significant oil reserves like Norway or Middle Eastern countries, traditional wealth like Switzerland, or a small population like Luxembourg, Ireland's growth has been sustained. The reason for this remarkable growth remains unclear.

Ireland has a tumultuous economic history, with a series of famines causing widespread devastation before gaining independence from England. The most infamous of these was the mid-1840s great hunger, which resulted in the deaths of approximately one million people and the emigration of another million.

After gaining independence from the British in 1922, Ireland faced a dire economic situation due to lack of economic infrastructure and trade options. As a country primarily consisting of subsistence farmers, their only immediate expansion option was to grow their agriculture industry and begin trade with other countries. However, archaic land ownership laws made this difficult as the land was automatically divided amongst the sons of a deceased farm owner, resulting in smaller farms and hindering potential growth.

During the Great Depression, Ireland's economy suffered like most countries globally. However, they noticed the USSR's isolationist economic policy and decided to adopt it. The government banned foreign investment and seized major corporations. This move was made to protect the economy from the dips and bumps of the global economy.

The decision to adopt an isolationist economic policy was a poor one for both the USSR and Ireland. The USSR had ample resources and a large size that allowed for such a policy, but Ireland lacked the necessary mass agricultural food production and domestic workforce to sustain it. Furthermore, economists have long warned that isolationist policies often lead to long-term disaster, regardless of a country's starting point.

After gaining independence, Ireland's economy took a turn for the worse, leading to half a million citizens leaving the country. Unfortunately, Ireland missed out on the post-WW2 economic boom due to its protectionist policies.

In 1958, the government implemented significant changes to their economic policies. They allowed state-held corporations to become privatized once again and lifted bans on trade and foreign investment. Additionally, the Shannon free trade zone was established, offering foreign companies tax incentives on profits and workforce. This was the world's first free trade zone, with advantageous customs regulations for goods and profits. As a result, multinational corporations found it an excellent location to operate from.

Ireland's economy saw significant growth for the first time ever due to the implementation of policies that incentivized investment. The country made significant cuts to its corporate tax rates and provided substantial grants to companies, which attracted major multinational businesses like Intel and De Beers. These companies created new industries in Ireland, contributing to the country's economic turnaround. Additionally, Ireland invested in education by passing the 1967 free education scheme, which led to significant growth in the country's education sector.

In the 1970s and 80s, Ireland's economy was hit hard by a combination of factors. The government had overspent and was too leveraged, while the two global oil crises in 1973 and 1979 further impacted the economy. Although Ireland had begun to branch out with international trade, it still relied heavily on the UK economy. Strikes by Irish banks and rising taxes on the middle class also contributed to the economic downturn, ultimately leading to Ireland's economy tanking.

In the following year, Ireland faced high unemployment rates of over 20 percent, currency inflation, and public debt. To address these issues, the country implemented policies similar to those used in 1958, such as lowering tax rates for corporations and significantly reducing taxes for the Irish workforce. Additionally, restrictions on firing Irish workers were removed, which had previously made it difficult for foreign companies to do business in Ireland. This change was made to encourage foreign investment and allow companies to hire and fire more freely.

Ireland's economic strategies proved to be successful, leading to a second economic boom. As a result, the country climbed up to become the third most business-friendly nation in the world. Within a decade, Ireland made a remarkable transformation from being one of the poorest countries globally to one of the wealthiest.

Ireland's access to trade with all EU members after joining the EU caused a significant increase in the value of its exports, particularly agricultural ones. The country also became more attractive to multinational corporations, especially those in tech, healthcare, and finance, due to its well-educated and English-speaking workforce. These companies benefited from not having to pay taxes in their home countries, resulting in more money circulating in the local economy through Irish banks.

In 2008, the recession hit Ireland hard. The cost of living increased, the economy declined, and by 2013, Irish prosperity seemed to be over. However, in 2015, the Irish economy grew at double the rate of any other country in the world. Investigations revealed that large companies, such as Apple, had sent money to their Irish subsidiaries for tax benefits. Ireland was the biggest tax haven, and corporations were using it to avoid domestic taxes on their profits. Despite being forced to change their policies, there were no penalties or ramifications, and it ultimately helped the economy continue to grow.

Ireland's recent economic success has been remarkable. Despite a history of economic hardship, the country is now on track to potentially become the world's richest nation. While some may attribute this to luck, the reality is that Ireland has made significant strides in recent years to attract foreign investment and promote economic growth. This has resulted in a boom unlike any in its history, and the country is poised to continue its upward trajectory in the years to come.