Cuman na Gaedheal and Fianna Fail in Power Economic Policies - Comparison



Cuman na Gaedheal and Fianna Fail in Power Economic Policies - Comparison




Cumann na nGaedheal

Economic crisis - Aftermath of War of Independence and Civil War

Partition – southern Irish economy poor – high unemployment

Dependence on UK for finance and trade

Rural focus – low industrialisation

Central Policy focus on Agriculture sector – free trade – low taxes – link Irish pound with sterling

Introduced standards of production, advisers, ACC set up to offer cheap loans, land commission, land Act

Less focus on Industrial Policy – Free Trade V Protectionism debate – Fiscal Enquiry Committee

Tariffs on small amount of products 1924/35 – concentrate on free trade

Shannon Scheme – major achievement 1929 – cheap power for Industry and public – ESB set up to distribute through one of the first National Grids in Europe

Low Taxes and cuts in spending

Cuts in Old Age pension and no of people getting social Welfare

‘Ultimate Financial Agreement’ with Britain – commitment to pay €5milion of Land Annuities

Some success – agricultural exports increase, small increase in industrial employment, budget balanced

- 30’s World Depression

Fianna Fail

Economic War + 30’s depression – devastating effect for farmers

Self – Sufficiency

Subsidies for farmers – encourage to switch from cattle (arable farming) to crops (tillage) – fixed prices for sugar beet

Industry focus – Sean Lemass

Protectionism – encourage Irish industry set up ICC to give cheap loans to Industry

Semi State Companies set up – Irish Sugar Company, Aer Lingus, Board na Mona, Irish Life

Increase in taxes and some spending

1933 – Unemployment Assistance Act, National Insurance Act – improve benefits.

Improved Old Age and blind pensions 1935 – pensions for widows and orphans introduced.

1932 – Housing Act – improved housing provisions

End to Land Annuities – final Lump Sum Agreed

Some success – more in Industry than Agriculture - some increase in Jobs in Industry but still high unemployment and wages low – increase in Taxes and cost of living



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