The First Programme for Economic Expansion, 1958–1963 in 1951. When the problem
persisted into 1955, the second inter-party government’s Minister for Finance again attempted to rectify the situation by increasing taxation. While these measures did help to curb the growing imbalance
in the balance of
payments by 1957, they did nothing to increase employment or reduce emigration.
The combination of increasing income tax and cutting public spending meant that less money was being spent in the country. As demand for their goods declined, businesses were forced to lower wages and cut staff. Employment fell by 12% between 1951 and 1958. This further increased the burden on the State, which had to pay welfare, while there was less tax revenue coming in.
Hundreds of thousands emigrated during the 1950s.
Many people emigrated in search of work. It is estimated that almost half a million people, out of a population of less than 3 million, emigrated during the 1950s, many of them young, well-educated men and women. This amounted to a decline of almost 16% in the population. With the exception of East Germany, Ireland was the only European country to see its population fall during the 1950s. Furthermore, Ireland’s economic depression was at odds with its European neighbours, whose economies were experiencing a post-war boom.
The standard of living in Ireland barely rose during the decade. 402 LEAVING CERTIFICATE HISTORY
