concludes that the modest fall in unemployment is all about emigration. Actually, we can reach the same conclusion by going straight to employment data:
…But the repeated invocation of Ireland as a role model has gotten to be a sick joke.
Agree with Krugman here. Ireland is in no way an international economic success story. As well as employment levels staying static, as illustrated in Krugman’s chart, the middle classes are still very much living austere lifestyles. While people complain about the new property and water charges, the real killer over the last few years has been the Universal Social Charge. To be paid at rates of up to 7%, on top of income tax, it’s been painful.