Ireland's GDP numbers are a little bogus. American multinationals engage in what is called transfer pricing to shift earnings to Ireland from the US to avoid taxes. There have been years in which Ireland supposedly exported a greater dollar value of stuff than their economy produced. Last year, I actually ran some of the numbers for Ireland with two coworkers and the per worker productivity numbers in a handful of industries are just ridiculous. If those handful of industries were really that productive the entire population of Ireland would shift into those industries and the multinationals would enormously expand employment, but the employment numbers haven't moved that much recently. Most actual drug manufacturing in the world is done in Ireland along with a lot of software publishing. For tax reasons almost all of the profits then appear on Ireland's accounts when the real work (the development) was done in New Jersey, California, Eastern Pennsylvania, Southern India, etc. The money then only nominally resides in Ireland as it is invested in Europe. But no country can run 13+% trade surpluses consistently without there being some monkey business in there. Even Abu Dhabi, Qatar, Kuwait and Norway do not run that big of trade surpluses.
I always wondered to what degree the UK might be understood in the way we look at say Saudi Arabia or Venezuela. Nothing personal against y'all for that comparison, but there is a phenomenon call the Dutch Disease. Back a few decades ago the Netherlands was the first country to tap the North Sea, for Natural Gas, I think. And they sold it to the other European countries. But they had their own currency, pre-Euro, and it appreciated. Their terms of trade and real exchange rates move relative to their neighbors and their trade became dominated by energy exports. The energy industry was labor light.....lots of capital for a few workers, who reaped the benefits. Eventually the tradeable sector of the economy withered; it could not compete with imports. So the economy shifts and the great mass of people end up in services, serving the small number of hyper-productive people in the export industry. The Government naturally responds by trying to transfer wealth by providing more and more services to everyone, increasing taxes and further hurting general productivity. It is the general explanation for why resource rich countries can become poor. Clearly the Netherlands did not suffer from the kind of problems associated with the Nigerias of the world but they still saw the problems.
Now substitute Financial Services for Natural Gas and I wonder to what degree the last few decades in the UK look similar. The UK is at around 50% of GDP being Government spending. I don't think it is unreasonable to say rising inequality from the City drove the increase to a certain degree. I think the City by itself is like 3% of UK GDP as of a few years ago. For 640 acres of office space to register on National Accounts seems weird to me. That percentage has to be almost entirely export services. I also presume the areas surrounding the City are probably similar.
Over here we occasionally get some of the "Broken Britain" stories (binge drinking, rising crime, domestic violence, illegitimacy, etc). To what degree is that kind of anti-social behavior possibly driven by the lack of productive employment. The number of Brits who can work in Investment Banking is limited and I'd expect the employee profile to be heavily foreign. Everybody else is left with non-tradeable jobs....bars, hair salons, government work, distribution, being servant to the hyper-productive foreigners, etc.
Also didn't Sarkozy say that London ranked among the largest cities of France because of the huge number of French emigrants?