Ireland’s Immigration Crisis

(A podcast on this article is available here).

1️⃣ The “Failure Premium”

Ireland’s immigration challenges are not caused by immigrants, but by the absence of state institutions capable of managing large‑scale arrivals.

> “There was no plan that failed, simply because there was no plan at all.”

The result: high costs, human suffering, and political backlash.

2️⃣ Ireland’s Structural Weaknesses (Pre‑Influx)

Ireland entered the migration surge with:

- Lowest housing stock per capita in Western Europe  

- Rents up 98% in a decade  

- 43% fewer hospital beds than EU average  

- GP lists closed in 75% of practices  

- Minimal public transport outside Dublin  

- Institutional capacity built for 3.6m people, not 5m

This meant zero spare capacity before immigration increased.

3️⃣ Scale of Immigration (2021–2024)

- 500,000+ arrivals in a few years  

- Three consecutive years of 100,000+ arrivals  

- Highest per‑capita intake in the EU  

- 23% of population foreign‑born  

- 75% of population growth from immigration

Ireland had no integration system to absorb this.

4️⃣ A Two‑Tier System Emerges

Ukrainian Refugees

- Immediate right to work  

- Medical cards, welfare, school places  

- €800/month host payment  

- Ireland went 3× beyond EU minimum

Asylum Seekers (Africa, Middle East, Asia)

- €38.80/week  

- 6‑month work ban  

- Years in hotel rooms  

- 70% rejection rate  

- Some forced to sleep rough (2023)

5️⃣ Cruelty in Every Direction

To Immigrants

- Warehoused in hotels at €99/night  

- No language classes, mental health supports, or integration  

- Ukrainians integrated into schools, then told to find housing in a <1% vacancy market

To Local Communities

- No GP expansion  

- No school places added  

- Hotels removed from tourism economies  

- Housing competition intensified  

- Communities blamed as “racist” for raising legitimate capacity concerns

> “You cannot get ‘something’ from ‘nothing’.”

6️⃣ Political Avoidance & Gaslighting

- Government celebrated generosity in Brussels  

- Built no permanent accommodation  

- Outsourced everything to private hotels  

- Now reversing course and blaming communities

The article argues this is not moral leadership, but performative politics.

7️⃣ The Middle Class Will Soon Feel It

The EU–India Free Trade Agreement (2026) will ease movement for skilled Indian workers across the EU.

Implications for Ireland:

- More competition for housing  

- Pressure on wages in tech & professional sectors  

- Increased demand for crèches, GPs, and transport  

- Middle class will enter the same zero‑sum competition as working‑class communities

8️⃣ Final Takeaway

Ireland’s immigration crisis is fundamentally a state capacity crisis.

> “A state that builds institutions absorbs the cost once. Ireland never built them… and everyone will pay the price.”

The article argues that immigration can be a net positive, but only when supported by institutions, planning, and integration systems—all of which Ireland failed to build.

Energy Poverty and Affordability in Ireland

1. Overview and Context

Energy poverty refers to a household’s inability to access essential energy services (heating, lighting, electricity) at an affordable cost. It is not just about high bills—it also includes under-consumption of energy due to financial constraints, which can harm health and wellbeing.

The issue is becoming more important due to:

• Rising energy price volatility
• Climate transition costs
• Geopolitical instability
• Structural inequalities in income and housing

The report emphasises that energy poverty is multidimensional, shaped by:

• Income levels
• Energy prices
• Housing quality and energy efficiency
• Broader socio-economic inequalities

It is therefore both an economic and social justice issue.

2. Scale of Energy Poverty in Ireland

• Around 14% of households self-reported energy poverty in 2024
• Using broader measures, over 30% of households experience some form of energy affordability issue
• In 2015, ~600,000 households (over one-third) met at least one energy poverty criterion

➡️ Key point:
The scale varies dramatically depending on how you measure it.

3. Measurement: Why It Matters

Ireland’s official measure:

• HSEEI-10% → households spending >10% of income on energy

Problems with this measure:

• Data only collected every 5 years
• Misses households that under-consume energy (hidden poverty)
• Underestimates the true scale

Alternative measures:

1. Self-reported indicators
   • Inability to afford adequate warmth (IAAW)
   • Arrears on utility bills (AUB)
   • Available annually → useful for short-term monitoring
2. Expenditure-based indicators
   • High energy share, low income–high cost, low expenditure, etc.
   • Better for structural analysis
3. Union Indicators (combined measures)
   • Count households meeting any criterion
   • Provide the most realistic estimate of overall energy hardship

➡️ Conclusion:
No single indicator is sufficient. A multi-indicator system is essential.

4. Multidimensional Nature of Energy Poverty

Different indicators capture different groups:

• Some households:
  • Spend too much on energy
• Others:
  • Spend too little (due to deprivation)
• Others:
  • Report hardship but don’t show high expenditure

➡️ Result:

• Limited overlap between indicators
• Each measure reveals a different “slice” of the problem

Union indicators show:

• Energy poverty is far more widespread than any single measure suggests

5. Vulnerable Groups (Who Is Most at Risk?)

The report identifies consistent high-risk profiles:

Most vulnerable:

• Low-income households
• Renters (especially private sector)
• Single-parent households
• Unemployed individuals
• Households with poor health or disability
• Rural households
• People in older, inefficient housing

Additional patterns:

• Female-headed households face higher risk
• Younger households rely more on supports
• Vulnerabilities often overlap and reinforce each other

➡️ Key insight:
Energy poverty is clustered disadvantage, not isolated hardship.

6. Affordability Risk Framework

The report proposes a framework based on three factors:

• Income level
• Energy costs
• Share of income spent on energy

Households are mapped into risk zones, identifying:

• Current energy poverty
• Future vulnerability (important for climate transition)

Structural vulnerability is defined as:

• Income poverty plus additional risk factors (e.g. renting + single parenthood)

7. Severity: The Energy Poverty Gap

A major contribution of the report is estimating how severe energy poverty is.

Findings:

• Households need:
  • €11–€45 per week to escape energy poverty
• Average annual gap:
  • ~€480 per household

Policy implication:

• Closing the gap for all vulnerable households would cost:
  • ~€370 million

Compare:

• Universal electricity credit (2024): €550–575 million

➡️ Conclusion:
Targeted supports could achieve the same outcome at ~40% lower cost.

8. Structural Drivers

The main drivers of energy poverty are:

1. Income (most important factor)

• Low disposable income = highest risk

2. Housing conditions

• Poor insulation
• Old buildings
• Energy inefficiency

3. Broader cost pressures

• Rent
• Healthcare costs
• Household composition

4. Energy prices

• Short-term shocks can rapidly worsen affordability

Key finding:

• Rising incomes in recent years helped offset:
  • Higher energy prices
  • Cost-of-living pressures

9. Policy Recommendations

A. Measurement Reform

Adopt a multi-indicator monitoring system, including:

• IAAW (short-term shocks)
• HSEEI-2M (structural burden)
• LAEE (hidden deprivation)

B. Short-Term Policies

Use responsive tools during shocks:

• Targeted energy credits
• Bill supports
• Deferred payment schemes
• Emergency protections

⚠️ Must be targeted, not universal.

C. Long-Term Policies

Address structural causes:

• Home retrofitting
• Energy efficiency upgrades
• Clean energy investment
• Income supports

D. Better Targeting

Align energy policy with:

• Social protection system
• Welfare payments
• Housing policy

10. Welfare and Energy Poverty

Energy-poor households typically rely on:

• Housing supports
• Child-related benefits
• Fuel allowance
• Disability supports

Less reliance on:

• Old-age pensions (due to younger demographic profile)

➡️ Insight:
Energy poverty is closely tied to existing welfare dependency patterns.

11. Overall Conclusions

• Energy poverty in Ireland is widespread, complex, and underestimated
• It is driven primarily by income inequality and structural housing issues
• Measurement using a single indicator is inadequate
• Targeted policies are significantly more cost-effective than universal supports
• Addressing energy poverty requires:
  • Coordination across energy, housing, and social policy

Bottom Line (for students)

Energy poverty isn’t just about high bills—it’s about how income, housing, and energy systems interact. If policymakers measure it badly, they target it badly, and that leads to wasted spending and missed households.

The economics of the fuel-price protests

1. What is happening?

Ireland is experiencing nationwide fuel‑price protests, now entering their third and fourth days, involving blockades of fuel depots, the Whitegate refinery, major motorways, and central Dublin. Protesters include farmers, hauliers, professional drivers, and other fuel‑dependent sectors.

Key developments:

- Blockades at Whitegate refinery (Cork), Foynes (Limerick), and Galway have immobilised roughly half of Ireland’s fuel supply, including parts of the strategic emergency reserve. 

- Forecourts in Galway and elsewhere have begun running dry, despite no national shortage of fuel—only a distribution blockage. 

- Major urban disruption, especially in Dublin: O’Connell Street blockaded, Luas Green Line suspended, Dublin Bus rerouted, and the M50 repeatedly shut by convoys. 

- Panic buying has begun, with some forecourts out of petrol. 

- The Government has requested Defence Forces assistance to remove heavy vehicles blocking critical infrastructure. 

2. Why are prices so high? — The economic drivers

According to multiple reports:

- Petrol and diesel prices have reached ~€1.95 and €2.17 per litre, respectively. 

- Protesters attribute the increases to:

  - Middle East conflict disrupting supply routes (especially the Strait of Hormuz). 

  - Government taxes, including excise duty, carbon tax, and VAT.

  - A belief that government intervention has been insufficient or misdirected.

3. Protesters’ demands

Protesters are calling for:

- Cuts to excise duty (a per‑unit tax on fuel).

- Suspension or removal of carbon tax for at least six months. 

- Price caps on diesel, petrol, and kerosene. 

- Direct talks with senior government figures. 

These demands map directly onto core microeconomic concepts:

Excise duty

An excise duty is a specific tax that shifts the supply curve upward by the amount of the tax.  

Effects:

- Higher equilibrium price for consumers.

- Lower equilibrium quantity.

- Reduced consumer and producer surplus.

- Creation of deadweight loss.

Carbon tax

A carbon tax is a Pigouvian tax, intended to internalise the negative externality of emissions.  

Effects:

- Same supply‑shift mechanism as excise duty.

- But justified on social welfare grounds (reducing external costs).

- Politically contentious because the burden falls heavily on fuel‑dependent sectors.

Price caps

A cap below equilibrium price creates:

- Excess demand (shortages).

- Incentives for black markets or non‑price rationing.

- Reduced producer surplus and potential exit of suppliers.

4. Government’s conflicting aims

The Government faces a classic policy trade‑off:

A. Protect household/business incomes

High fuel prices reduce:

- Disposable income.

- Competitiveness of transport‑intensive industries.

- Rural mobility.

B. Maintain climate commitments

Carbon taxes are central to Ireland’s legally binding emissions targets.

C. Preserve public order and critical infrastructure

Blockades threaten:

- Fuel supply chains.

- Emergency services.

- Hospital access.

- Airport operations. 

D. Avoid setting a precedent

Meeting protesters’ demands directly could:

- Encourage future blockades.

- Undermine representative bodies (e.g., IFA, IRHA), which are not officially involved. 

This tension is visible in the Government’s shift from engagement to enforcement, including the request for Defence Forces assistance.

5. People power vs. state authority

The protests illustrate a classic political‑economy dynamic:

People power

- The movement is decentralised, organised largely via social media, making it difficult for the state to negotiate with a single actor. 

- Blockades have proven highly effective at creating immediate economic pressure.

Government response

- Gardaí initially used the “4Es” model: Engage, Explain, Encourage, Enforce.  

  When blockades escalated, Gardaí declared:  

  “These are no longer protests, they are blockades.” 

- The Government has described the actions as “national sabotage” (per reporting). 

- The Defence Forces have been asked to provide heavy vehicle recovery, not armed intervention. 

This escalation reflects:

- The state’s need to maintain critical infrastructure.

- The political risk of appearing out of touch or heavy‑handed.

- The delicate balance between civil liberties and economic stability.

6. How this ties into our economics course

Here are the most relevant concepts to emphasise:

A. Tax incidence

- Who actually bears the burden of excise and carbon taxes?

- Why fuel‑dependent sectors feel the impact more intensely.

B. Elasticity

- Demand for fuel is relatively inelastic, so taxes raise significant revenue but also impose large burdens.

- Supply disruptions (blockades) cause sharp price and quantity effects.

C. Surplus and deadweight loss

- Taxes reduce both consumer and producer surplus.

- Blockades create additional deadweight loss by preventing mutually beneficial transactions.

D. Externalities

- Carbon tax is designed to correct a negative externality.

- But the distributional impact can overshadow the efficiency argument.

E. Public choice theory

- Government must balance:

  - Climate goals.

  - Revenue needs.

  - Electoral incentives.

  - Pressure from organised groups.

F. Market failure vs. government failure

- High prices partly reflect global supply shocks (market failure).

- But protesters argue that government policy exacerbates the burden (government failure).

7. A final synthesis for economics students

The Irish fuel‑price protests are a live case study in how:

- Microeconomic tools (taxes, surpluses, elasticity) interact with  

- Macroeconomic shocks (global conflict),  

- Political constraints, and  

- Collective action.

They reveal the tension between:

- A government pursuing long‑term environmental and fiscal goals, and  

- A population facing immediate cost‑of‑living pressures.

The threat to deploy the Defence Forces underscores how economic grievances can escalate into institutional stress, especially when essential infrastructure is involved. 

Podcast available here.

Eight Decades of Energy Price Shocks: Global Turbulence and the Irish Experience

Energy markets have shaped the global economy more than almost any other commodity market over the past 80 years. From geopolitical crises to technological revolutions, sudden shifts in oil and gas prices have repeatedly triggered inflation, recessions, and major policy changes. For Ireland — a small, open economy heavily dependent on imported energy — these shocks have often had outsized effects.

This article traces the major energy price shocks since the 1940s and explains how each one influenced both the world economy and Ireland’s economic trajectory.

1. 1956 – The Suez Crisis

Global Impact

The nationalisation of the Suez Canal by Egypt disrupted a key shipping route for Middle Eastern oil. Although the shock was short-lived, it caused temporary supply shortages and higher transport costs. Global growth slowed slightly, but no major recession followed.

Impact on Ireland

Ireland, still relatively underdeveloped and less energy‑intensive than later decades, experienced:

- Higher fuel import costs  

- Rising transport and heating prices  

- Mild inflationary pressure  

The overall macroeconomic impact was limited, but it highlighted Ireland’s vulnerability as an energy importer.

2. 1973 – The First Oil Shock

Global Impact

Following the Yom Kippur War, Arab OPEC members imposed an embargo on the US, Europe, and Japan. Oil prices quadrupled. The result was:

- A deep global recession (1974–75)  

- Surging inflation (“stagflation”)  

- Sharp falls in industrial output  

- A major shift in global economic power toward oil‑producing states  

Impact on Ireland

Ireland was hit extremely hard:

- Inflation soared above 20%  

- Unemployment rose sharply  

- Public finances deteriorated  

- The cost of living crisis eroded real incomes  

- Energy‑intensive sectors (transport, manufacturing, agriculture) suffered  

This shock marked a turning point, exposing Ireland’s dependence on imported oil and prompting early discussions about diversification and energy security.

3. 1979 – The Second Oil Shock

Global Impact

The Iranian Revolution and subsequent Iran–Iraq War removed millions of barrels per day from global supply. Prices doubled again. The world entered another recession in the early 1980s, intensified by aggressive interest‑rate hikes to fight inflation.

Impact on Ireland

Ireland entered one of the most difficult economic periods in its modern history:

- Inflation again exceeded 20%  

- Borrowing costs surged  

- Emigration rose  

- Public debt ballooned  

- Industrial competitiveness weakened  

The combination of global recession and domestic fiscal imbalances created a prolonged downturn that lasted much of the 1980s.

4. 1990 – Gulf War Oil Shock

Global Impact

Iraq’s invasion of Kuwait removed both countries’ oil exports from the market. Prices doubled briefly, contributing to recessions in the US, UK, and parts of Europe.

Impact on Ireland

Ireland experienced:

- Higher inflation  

- Slower growth in 1991  

- Pressure on household incomes  

However, the shock was short-lived, and Ireland’s economy — entering the early stages of the Celtic Tiger era — recovered quickly.

5. 2003–2008 – The Commodity Supercycle

Global Impact

Rapid industrialisation in China and emerging markets drove oil prices from around $30 to nearly $150 per barrel. Although the 2008 recession was caused by the financial crisis, high energy prices:

- Reduced consumer spending power  

- Increased production costs  

- Contributed to global inflationary pressures  

Impact on Ireland

Ireland was already overheating due to the property bubble. High energy prices:

- Increased transport and construction costs  

- Reduced disposable income  

- Added to inflation during the boom years  

When the financial crisis hit, the energy shock amplified the severity of Ireland’s downturn, though it was not the primary cause.

6. 2011 – Arab Spring Disruptions

Global Impact

Political instability in Libya and other producers pushed Brent crude above $120 per barrel. The shock contributed to:

- Higher inflation in Europe  

- Slower global growth  

- Pressure on oil‑importing developing countries  

Impact on Ireland

Ireland was in the middle of its EU‑IMF bailout. High oil prices:

- Increased household energy bills  

- Raised business costs  

- Complicated fiscal consolidation  

However, the broader European debt crisis had a far larger impact on Ireland’s economy than the energy shock itself.

7. 2014–2016 – Oil Price Collapse

Global Impact

The US shale boom created a supply glut. Prices fell from over $110 to below $30 per barrel. This was a negative price shock — beneficial for consumers but damaging for producers.

Impact on Ireland

Ireland benefited significantly:

- Lower petrol and diesel prices  

- Reduced inflation  

- Increased disposable income  

- Lower input costs for firms  

This period supported Ireland’s strong post‑crisis recovery.

8. 2020 – COVID‑19 Energy Demand Collapse

Global Impact

Lockdowns caused the largest drop in oil demand in modern history. Prices collapsed, with US WTI futures briefly turning negative. The global recession was caused by the pandemic, not the energy shock.

Impact on Ireland

Ireland experienced:

- Lower energy prices during lockdown  

- Reduced transport costs  

- A collapse in aviation fuel demand (important for Dublin Airport and airlines)  

The recession was driven by public‑health restrictions rather than energy markets.

9. 2022 – Russia–Ukraine War

Global Impact

The invasion triggered massive spikes in oil and especially natural gas prices. Europe faced the most severe energy crisis since the 1970s:

- Record gas and electricity prices  

- Inflation surges  

- Industrial shutdowns in Germany and elsewhere  

- Aggressive interest‑rate hikes  

A global recession was avoided, but growth slowed sharply.

Impact on Ireland

Ireland was heavily exposed because of its reliance on imported gas:

- Energy bills for households and firms soared  

- Inflation reached multi‑decade highs  

- Government introduced large support packages  

- Competitiveness concerns rose for SMEs  

Despite this, Ireland avoided recession thanks to strong multinational exports.

10. 2026 – Strait of Hormuz Tensions

Global Impact

Rising conflict and reduced tanker traffic through the world’s most important oil choke-point pushed prices higher. So far:

- Inflation has risen modestly  

- Markets remain volatile  

- No global recession has occurred  

Impact on Ireland

Ireland has experienced:

- Higher transport and heating costs  

- Renewed pressure on inflation  

- Increased focus on renewable energy and security of supply  

The impact remains manageable but highlights ongoing vulnerabilities.

Conclusion: A Persistent Pattern with Irish Specifics

Across eight decades, energy price shocks have repeatedly reshaped the global economy. For Ireland, the pattern is clear:

- 1970s shocks: severe recessions and long‑lasting structural problems  

- 1990 and 2008 shocks: amplified existing vulnerabilities  

- 2014–16 collapse: beneficial for growth  

- 2022 gas crisis: painful but not recession‑inducing  

- Recent tensions: manageable but concerning  

Ireland’s dependence on imported energy means global shocks consistently ripple through the economy — affecting inflation, competitiveness, public finances, and household living standards.

Click here to view a short video presentation of this information.

Future Forty: Mapping Ireland’s Economic Trajectory to 2065

The Future Forty: A Fiscal and Economic Outlook to 2065, prepared by the Department of Finance and Future Forty: Mapping Ireland’s Economic Trajectory to 2065 published in November 2025, presents a crucial long-term perspective on the Irish economy, grounded in anticipatory governance. The analysis assesses challenges and opportunities across seven critical "Deep Dives": Climate Change and the Green Transition, Demographic Trends, Housing, Healthcare, Digitalisation, De-globalisation, and EU Enlargement.

The report employs a scenario-based approach, analysing 2,187 possible outcomes using a Solow growth accounting framework based on labour, capital, and Total Factor Productivity (TFP).

Central Scenario Projections (No Policy Change)

Under the Central Scenario, Ireland is projected to continue growing, with Modified Gross National Income (GNI*) reaching €537 billion by 2065 (in 2020 prices). However, the rate of overall economic growth is projected to slow over time. Living standards (GNI* per-capita) are expected to decelerate throughout the 2030s and 2040s, stabilising at approximately 0.5 per cent annual growth thereafter.

The fiscal outlook anticipates significant deterioration driven by global trends and specific domestic pressures:

1. Fiscal Deficit: The annual general government deficit is projected to reach 7.9 per cent of GNI* by 2065.

2. Public Debt: National Gross Debt is forecast to rise sharply to 148 per cent of GNI*, or €117,000 per-capita, by 2065.

3. Expenditure Pressures: Ageing-related expenditure (healthcare, long-term care, and pensions) is projected to account for 46 per cent of all voted expenditure by 2065, up from 34 per cent in 2025. The increasing fiscal deficit is compounded by the projected decline of "windfall" corporate tax receipts during the 2030s.

Key Strategic Drivers

The overall distribution of scenarios is tilted to the downside, with 62 per cent of outcomes projecting a higher National Debt than the Central Scenario. The most critical long-term challenges identified that drive negative outcomes are the extreme impacts of climate change and the green transition, followed closely by the poorest outcomes in the healthcare system and low future population growth (demographics). Conversely, productivity growth (TFP), often driven by digitalisation, is identified as the ultimate source of sustainable long-run growth and fiscal improvement.

The report highlights that a critical window of opportunity exists in the coming decade to implement necessary reforms, such as enhancing long-run productivity, addressing the housing shortfall, and improving cost-efficiency in health and aged care systems, before demographic shifts constrain economic growth and fiscal flexibility diminishes in the mid-to-late 2030s.

The full document is available here.

Click here to listen to the podcast.

The Transition from Single-Income to Double-Income Households in Ireland: Shifting Economic Realities

The dynamics of household incomes and living standards have undergone significant changes over the past decades in Ireland. From the 1950s to the present day, the transition from single-income households to double-income households has become increasingly prevalent. This article explores the reasons behind this shift, how it used to be possible for a single income household to afford a comfortable lifestyle, and how the changing economic landscape has necessitated both parents to work in order to maintain a similar standard of living. Additionally, I will discuss how this transition has contributed to inflation and the potential need for three incomes in the future.

The Era of Single-Income Households

In the 1950s and 1960s, the concept of a single breadwinner supporting an entire household was the norm in Ireland, a situation nearly 70% of mothers would like to return to. With lower costs of living, it was possible for families to afford a house, a car, and various modern conveniences on a single income. This was partly due to more affordable housing prices, lower taxes, and the availability of stable employment opportunities. The traditional family structure with the male as the primary earner and the female focused on domestic responsibilities was widely accepted.

Changing Economic Realities

Over time, several factors have contributed to the shift from single-income households to double-income households in Ireland. Rising housing costs, inflation, increased consumer expectations, and a desire for improved living standards have all played a role. As housing prices soared and the cost of living increased, relying on a single income became insufficient to maintain the same level of comfort and convenience that previous generations enjoyed.

Necessity of Dual Incomes

In recent years, it has become increasingly necessary for both parents to work to afford a comparable standard of living. This shift is often attributed to the rising cost of housing, education, healthcare, and other essential expenses. Additionally, societal changes, such as an increased focus on gender equality, women's empowerment, and the desire for career advancement, have also contributed to the prevalence of dual-income households.

The Role of Inflation

The transition from single-income to double-income households has been accompanied by inflationary pressures. As more households began relying on dual incomes, the demand for goods and services increased, driving up prices. The resulting inflationary pressure affects housing, education, healthcare, transportation, and other essential commodities. Consequently, the standard of living that could be comfortably maintained by a double-income household in the past may require three incomes in the future due to the compounding effects of inflation.

The transition from single-income households to double-income households in Ireland has been driven by changing economic realities and societal expectations. While single-income households could once afford a house, a car, and modern conveniences, the rising cost of living and increased consumer expectations have necessitated both parents to work. This transition has fueled inflation over the decades, further intensifying the economic challenges faced by families. 

Looking ahead, it is important to consider how future economic and social factors may impact household incomes and the potential need for additional sources of income to maintain a desirable standard of living.

Ireland's Spending on Education: An International Comparison

Ireland has been steadily declining in government spending on education as a percentage of GDP in recent years. In 2008, Ireland spent 4.9% of its GDP on education, but by 2020, that number had fallen to 3.1%. This decline is in stark contrast to the OECD average, which has remained relatively stable at around 4.9% over the same period.

Data from: Our World in Data

There are a number of factors that have contributed to Ireland's declining education spending:

• The financial crisis of 2008 had a significant impact on the Irish economy, and government spending on all fronts was reduced as a result.
• In addition, Ireland has seen a significant increase in the number of students attending third level education in recent years, which has put a strain on resources.

The decline in government spending on education has had a number of negative consequences:

• First, it has led to larger class sizes and less access to resources for students. 
• Second, it has made it more difficult for schools to attract and retain high-quality teachers.
• Third, it has contributed to a decline in the quality of education in Ireland.

Ireland's declining education spending is a matter of concern for many people. There is a growing consensus that Ireland needs to invest more in education in order to remain competitive in the global economy. The government has made some commitments to increasing education spending in recent years, but it remains to be seen whether these commitments will be enough to reverse the trend.

In terms of how Ireland compares with other wealthy countries in this regard, Ireland is one of the lowest spenders on education as a percentage of GDP. Only Chile, Mexico, and Turkey spend less on education as a percentage of GDP than Ireland. The United States, Canada, the United Kingdom, and most other European countries spend significantly more on education as a percentage of GDP than Ireland.

If Ireland wants to remain competitive in the global economy, it needs to invest more in education. The government needs to make a long-term commitment to increasing education spending and to ensuring that all students have access to a high-quality education.