Irish and American economics: a comparative analysis

Irish Economics

Economic systems and the role of government in the United States and Ireland are somewhat similar. However, the economy of Ireland is much smaller, and enjoys more freedom from government than the United States.

Ireland has a long history of rebellion and conflict. Twenty-six Irish southern counties gained independence from the UK in 1921, while six northern (Ulster) countries remained under the UK's umbrella. Since that time, terrorist groups like the Irish Republican Army (IRA) have fought for reunification of Ireland (CIA the World Factbook, Ireland). In 2002, the Good Friday accord for the reunification of Northern Ireland failed (Commanding Heights), but in 2006 the Irish and British governments began work on the St. Andrew's Agreement, which built on the Good Friday accord (CIA the World Factbook, Ireland).

Ireland's economy is small and dependent on trade. Growth averaged 6% from 1995 to 2006. Industry (which accounts for 46% of GDP) and services are the main sectors. In the past ten years, the government of Ireland has introduced measures to promote foreign investment, reduce price and wage inflation, reduce spending, and increase the workforce's skills. Ireland began circulating the Euro in 2002.

In contrast, the United States' economy is the largest in the word. The economy is market-oriented, and highly technologically advanced. Primary sectors include petroleum, steel, motor vehicles, consumer goods, aerospace, and telecommunications (CIA the World Factbook, United States).