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Old 23.03.2010, 20:47
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Kiwi Lad Kiwi Lad is offline
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Re: The Middle Class Two Income Trap

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The domestic consumption is vital and the system is set up to support it. I.e., if you own a car, you are encourage to use winter tires during winter because if you happen to cause an accident, the insurance won't cover the damages. You are discouraged from changing you own tires, as you are not a car mechanic and thus you have to go to a garage...thus creating work for the garage. The is why, the Swiss economy doesn't perform well in terms of growth as the same Franc just goes from one hand to another. If it were based on export, than it would be very dependant on the global economy, .
To be honest encouraging people to have a set of tires for winter and one for summer doesn't sound like such a bad idea. I know by experience that winter tyres make a huge difference between beeing able to stop on thin amount of snow and just plain skidding (think of all the sloped roads in Switzerland) and I guess in a way it keeps taxes down (ok maybe not such a large amount) by lowering the frequency of road repairs to non salted roads damaged by chains/studs and also reducing amount of salting on less travelled roads. If I was a smart insurance marketer I would offer a subsidy on winter tyres for people taking out a new policy. (Luckily I'm still on an English policy, no winter tyres no problem (winter tyres what are they )

I think money going from one person to another as described is pretty normal in life and is a fundamental basic of an economy.. or am I misled?

Do people in Switzerland not get to vote? If not thats the first issue if so then why don't people make a stand (about the insurance companies blackmailing them into using tyres that might save their life over winter) against the different tax rates in different kantons etc.

Or is it that when the rich people are happy so are the politicians and the rest all work too hard (have a burnout cost everyone in the country more money) to instigate change?

Oh and final comment. How big does a house for a two income family need to be, what kind of car should they drive (new/old/slightly dented/washed at an expensive carwash each week) and should they shun Lidl and Aldi as the Jone's next door visit Coop und Migros. Maybe a return to subsistence living with a small income for essentials is the way to go.. well bio products would sure be cheaper!
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