The Celtic Tiger: Ireland's Economic Miracle

          After the burnout of the Irish economy in the 1980s, a phoenix, known as 'The Celtic Tiger' rose from its ashes, lasting from 1994 through its collapse in 2007 .  This economic juggernaut grew at an average rate of 9.4% between 1995 and 2000, then continued to increase about 5.5% per year until 2007. Unemployment even dipped below 4% at times, a sign of a prosperous economy.  There are an innumerable amount of causes for this explosion of wealth, but the most influential and important are Ireland's corporate tax policy, aid and funding received from the EU, and changing demographics in the Irish population.
          Throughout the 1990s Ireland had an extremely low corporate tax rate.  At its highest rate it hovered around 12.5%, miniscule compared to that of other developed countries.  This low tax rate attracted many businesses and corporations, especially those of the emerging tech industry.  This modern 'industrialization' brought new wealth into the economy, stimulating it and causing growth.

          Ireland's partnership with the EU had also buffered in prosperity.  The aid it provided Ireland in the recession of the 1980s helped construct new infrastructure, and reform the educational system.  As students in these improved schools grew up they added another dimension to the labor force, and helped bring about economic change from and industrial to a service-based economy.  Not to mention the economic partnership of the Eurozone opened Ireland to trade with nearly all of Europe, abandoning its traditional trade-partner, the UK.  This increased trade has brought wealth to the country, as well as fostered international relations destroyed during the violent 70s and 80s.

          The most interesting aspect causing 'The Celtic Tiger' was proposed by two Harvard demographers, David Bloom, and David Canning.  Bloom and Canning wrote a paper named "Contraception and the Celtic Tiger" proposing that the legalization of contraception the 1970s led to a decreased birth rate, and therefore population in Ireland.  Essentially, they've proposed that whenever a smaller generation reaches working age and are productively employed, the economy experiences a boost, with more money falling into the hands of less people.