For many years, the economy of Ireland has been the leader in Europe. With high growth rates, younger age population immigration and strong tax revenue growth rates. It’s the exact opposite of Maine, where the young are moving out, tax rates are going up and growth rates are slowing.

No longer does Dirigo mean, “I lead,” unless you mean, Dirigo ad paupertatem: “I lead to poverty.”

It is accepted by many that Maine’s aging population, high unemployment rates in some areas and high numbers of people on food stamps are intractable problems. Their way to solve this is ever higher government spending, taxes, regulation and protectionist politics and polices. This was true also for Ireland in the early 1980s.

The Irish refused to accept this fatalistic vision of the future, similar to the one being shown and applied today to the residents of Maine by Maine Democrats.

The Celts decided they’d had enough of polices that led to the downward spiral of more government spending, more taxes and more debt. They got tired of “progressive” politicians leading to progressively lower standards of living. The Irish changed their government and its policies.

Four changes were instituted that turned Ireland’s economy around and preserved a way of life:

• fiscal consolidation founded on public expenditure restraint rather than higher taxes;

• low corporate tax rates;

• less government bureaucracy, leading to a ease of contacts with government departments; and

• a rational policy toward relative wage cost.

This is not just a “one-country-wonder.” This burst of economic growth and freedom has been repeated in other countries, notably New Zealand, the country where most of the “Lord of the Rings” triumphs were filmed.

After the people of New Zealand threw off the yoke and chains of “progressive” politicians and polices in the 1980s, and resisted repeated attempts to return to the tyranny of bureaucratic government, the country has enjoyed strong economic growth, lower tax burdens and a balanced budget.

That’s something the most recent Democrat-dominated Legislature failed to do. Gov. Baldacci promised to not raise taxes. He followed through on that promise by including $450 million of debt in the budget, but did not allow the electors to vote on it, thereby violating the constitutional right of the people to vote on such measures, as stated in Section 14 of the Maine Constitution.

There is a ground swell of disgust and distrust in our Democratic representatives, who promise tax relief and do not deliver, who promise to bring better fiscal responsibility and go into debt to pay for current expenses, who violate the constitution of Maine, but claim they couldn’t think of a better way to solve their improvident and wasteful ways.

Two “people’s vetoes” are leading the economic interest of Mainers:

• Tax restraint: The Tax Payers Bill of Rights

• Debt policy veto: The Don’t Mortgage Me Initiative

These two are a visible sign of changes coming with the spring of 2005.

Once business people are convinced that protectionist labor, high taxes and onerous environmental polices are not first in the minds of the Legislature, the inherent Yankee Spirit of Mainers and perhaps outside businesses would flow to take advantage of the pleasant natural environment, the availability of a relatively well-educated labor force, and Maine’s good port and road infrastructure.

Both Ireland and New Zealand provide a powerful lesson: People can repair the damage big government does to an economy. It is with hope that I see the progress of Maine toward the leadership of our kindred Ireland.

J Dwight is an independent registered investment adviser. He lives in Wilton.

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