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Politics and Fiscal Policy under Lemass: A Theoretical Appraisal

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  • 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.

Suggested Citation

  • Frank Barry, Trinity College Dublin, 2009. "Politics and Fiscal Policy under Lemass: A Theoretical Appraisal," The Institute for International Integration Studies Discussion Paper Series iiisdp292, IIIS.
    • Handle: RePEc:iis:dispap:iiisdp292
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    References listed on IDEAS

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    1. Francesco Daveri & Guido Tabellini, 2000. "Unemployment, growth and taxation in industrial countries," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 15(30), pages 48-104.
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    3. Frank Barry, 2003. "Economic Integration and Convergence Processes in the EU Cohesion Countries," Journal of Common Market Studies, Wiley Blackwell, vol. 41(5), pages 897-921, December.
    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.
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    2. Fitzgerald Frank, 2023. "A road not taken? Economic ideology and the articulation of policy alternatives in Irish state economic policymaking, 1948–58," Administration, Sciendo, vol. 71(2), pages 27-51, May.

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