Sunday, April 11, 2021
But it hadn’t, as government officials acknowledged from the beginning. It was, instead, an illusion created by corporate tax games. At the time, I dubbed it “leprechaun economics,” a coinage that has stuck; luckily, the Irish have a sense of humor about themselves.
What really happened? Ireland is a tax haven, with a very low tax rate on corporate profits. This gives multinational corporations an incentive to create Irish subsidiaries, then use creative accounting to ensure that a large share of their reported global profits accrue to those subsidiaries.
This use of "leprechaun" is condescending, racist, unfunny and generally bad. The NYT should cancel Krugman. I'm half Irish and I feel demeaned by his feeble attempt at humor. He wouldn't be making Irish jokes if he had suffered discrimination for being Irish. I think that's about it.