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Politics and Fiscal Policy under Lemass: A Theoretical Appraisal

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Author Info
Frank Barry, Trinity College Dublin
Abstract

Lemass rejected Whitaker’s recommendations that direct taxes be reduced and public investment shifted from social to productive areas. This was arguably done for political reasons and because Lemass believed that it might be possible to establish a social partnership deal of the type that Eichengreen has argued to have played a crucial role in post-war European convergence on US living standards. Such a bargain could not be reached under Ireland’s industrial-relations system however. The present paper contrasts the two systems and shows the adverse employment, investment and growth effects that such attempts would have had in Ireland.

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Paper provided by IIIS in its series The Institute for International Integration Studies Discussion Paper Series with number iiisdp292.

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Date of creation: 06 2009
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Handle: RePEc:iis:dispap:iiisdp292

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  1. Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR, CES, MSH, vol. 15(30), pages 47-104, 04. [Downloadable!] (restricted)
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  2. Oswald, Andrew J, 1985. " The Economic Theory of Trade Unions: An Introductory Survey," Scandinavian Journal of Economics, Blackwell Publishing, vol. 87(2), pages 160-93.
  3. Frank Barry, 2003. "Economic Integration and Convergence Processes in the EU Cohesion Countries," Journal of Common Market Studies, Blackwell Publishing, vol. 41(5), pages 897-921, December. [Downloadable!] (restricted)
  4. Roche, William K., 2009. "Social Partnership - From Lemass to Cowen," The Economic and Social Review, Economic and Social Studies, vol. 40(2), pages 183–205. [Downloadable!]
  5. McDonald, Ian M & Solow, Robert M, 1981. "Wage Bargaining and Employment," American Economic Review, American Economic Association, vol. 71(5), pages 896-908, December. [Downloadable!] (restricted)
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This page was last updated on 2009-12-8.

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