Can someone explain this to me?
I cant read graphs
Hey, let me try
Pink bar is how good is the country in generating profit/earning/producing per person, simply how country in general is getting on when then divided by citizens. Bigger the bar, country is more profitable per person living in that country meaning - this in theory is how good the live is there, how much you can afford for the money you earned. (this is not perfect, better for it would be purchasing power index, but for this here is good enough).
Blue bar is how much can citizen afford to buy from the profit they generated from their work. Bigger the bar, you are wealthier.
If blue is bigger than pink, this means country (society) is living on loans, they consume more than produce. This is OK if not big difference, it is problematic if the gap is huge meaning people spend more than they earn.
If pink is bigger than blue, then it means that from all the wealth people produced only portion of it stays in their pockets making their lives better in general - you should be able to afford more, you can live on the higher level.
From the above graph we can read, that Ireland despite generating enormous profit (pink bar) due to tax and general politics of the country mostly makes this wealth to go away (transferred out). This is not bad, as Ireland's economy well... lets say it is not Germany but more Luxembourg due to corpos here. However, comparing to Luxemburg (the wealthiest country) Ireland does not give earned money to the people to spend what they worked for (or reduce cost of spending using politics to eg. lower costs of living, fuel etc. simply they use political tools to move that pink bar to increase the blue bar, even simple thing like free medical service, better infrastructure paid for from the pink portion). It the blue bar tells you how wealthy the people are, how much they can afford to spend (not how much country earned/produced) and in that category we are behind for example... Lithuania. That blue bar gives you some of idea on standard of living in the country. The pink bar is showing how country is getting on.
Ergo, Ireland should have a better quality of life than Denmark but because of government (laws, taxes, rules) we are behind Lithuania.
Standard of living is not only the money you can spend but also availability of the services and access to them. That is why when this is taken into account (not exactly shown on the graph here) Ireland is below EU average despite having second largest earnings.
I am not sure if I managed
