In case anyone is interested: my summary of the economic situation in Switzerland. am between jobs and I really like writing -- please forgive the hubris

http://swisstuff.blogspot.ch/2012/09...-economic.html

Great time for us to be moving then. Is it? No? Gah!!

Too late now anyway...

Lehman's collapsed on my husband's first day at work in Switzerland.

What percentage of Nestle's business is domestic? Any idea?

I THINK its about 2%. As such, its a strange bellweather you have chosen

I read the entire article...
1) Overall well written but it often lacks of evidence to support your arguments.
Sometimes you just say "out of the blue" something without proving it.

2) I will strongly disagree with that extract: "...And Swiss companies aren’t exactly getting rich off this rate". It has even been proven that "importers" have not reported the currency rate on their retail prices. In other words, they have only started to reduce the price in CHF after been caught by the newspapers... And I observe everyday some funny prices in the shop for products now imported and sold in Switzerland...

Some companies are definitely profiting considerably from that strong CHF...
Evidence or hint: http://translate.google.com/translat...rcutes&act=url

3) For the rest I also have concerns for the economic future as the banks were a strong assets for the country... But I think that the lower tax is still an strong argument when the "neighbours" are strongly taxing their citizen...


Well thanks for your summary anyway!

Thats a bit patronising to an ex-Bloomberg journalist...

I don't necessarily like journalists

And actually in that article the journalist says something without backing up the information with actual evidence....

I though they should always be objective?

Imagine my surprise

I thought those points you made were valid, but she (?) isn't writing as a journalist now, just giving opinions.

My reply to you only referred to the "Well written" as you patted her on the head on her way out to school

I have no editor to temper my musings so all thoughtful criticism is very appreciated.

You're right .. I didn't cite sources because I thought I would bore the pants off everyone if I did. Indeed, the folks at Bloomberg would be very disappointed in me. But then again, my blog, my rules.

I don't think I'm saying anything controversial that hasn't been reported by various media outlets, including Marketwatch. Google my name, marketwatch and you'll see a host of articles I've written over the past 2 years on topics like say on pay, the swiss watch industry, tourism, Swiss entrepreneurs, clean tech, banking even FIFA.

Hope that clears things up.

Well written article. On a more serious note, I've been saying this for years. For one, Switzerland is not a competitive country in itself. It attracts major companies which register all these innovations because of its favourable tax environment. Furthermore, universities have one of the lowest rates of domestic enrollment and therefore, the country has to rely on a steady supply of skilled foreign labor. These companies do this with attractive salary and compensation packages. In terms of the domestic economy, there are by far too many inefficiencies, to keep the country afloat with the system set up as it is. There are a pletora of regulatory bodies missing as well as common standards and laws, which are set up as norms in other countries but completely lack presence here in Switzerland. This is clearly shown in the vast amount of entrepreneurial activities taking place. These however fail to set a seminal path and their lifespan is rather ephemeral as operating costs are too high and the standard/quality of service provided is rather low.
Culturally speaking, it seems, that the local idiology is rather blindfolded by its success from the 70s...and thus, many people are totally oblivious of the fact, that the country is slowly but surely heading down the drain. The periodic Mercer study also fails to accumulate detrimental factors, which really determine the quality of life and this only supports the local aforementioned stance on how Switzerland views itself.

According to this article and this article Switzerland is doing just fine. With many European countries failing around Switzerland, she still stands. Switzerland proved their insight and intelligence by not joining the EU for one. Their most powerful trading partner in Europe is Germany, and Germany is doing quite well actually. I think on the world's stormy sea Switzerland has managed to stay afloat and it won't be going anywhere soon.

The countries "heading down the drain" in Europe are Greece, Portugal, and Spain. I may have missed a couple. A lot of these people are trying to come to Switzerland for work! The immigration statistics of Switzerland showed a massive increase last year because people need work. I think sometimes people want to take a pessimistic view of Switzerland's future because they are not happy living here. It is apparent through many of your post that you despise Switzerland and it is amazing that you continue to stay. Switzerland is a stable country and the Swiss Franc is stable as well. These "dreams of deterioration" are uncalled for, and as long as the people who are leading the country, the Swiss, stay in power things will continue to grow. It is when those who do not "care" about the country begin to make the decisions is when a country falls. Like USA and UK.

For example, UK was once a great empire. They weren't called the United Kingdom for nothing. However, they over stretched themselves, the same way US is doing right now. They did not take care of home but was hell bent on expanding their empire; however, in the meantime they through out "the baby with the bath water." US is doing the same thing. Excessive outsourcing, fighting wars, lack of economic growth...etc. All the signs are there, where are the signs that Switzerland is headed in that direction?

Switzerland is a "passive-aggressive" country. When they negotiate it may seem like they are getting the shorter end of the stick, but remember, the Swiss have insight and they look much further down the road. For example, the situation with the US and Swiss banks. The Swiss seemed to "give in" to a great degree and many were disappointed including myself. Nonetheless, this appeasement has a "backfiring" effect. It is making it more difficult for Americans to live and work in Switzerland, and this will grow to other countries as well. So what happens? Yes, Switzerland gave the US what they wanted, but Americans have a hard time living in Switzerland now. Swiss banks are reluctant to accept them and are beginning to close their accounts. It shows that Switzerland is not dependent on US acceptance or need their business. They prefer "to save their own a$$es," which is the right thing to do. The Swiss will only go so far.

Switzerland is currently curbing their immigration and making some changes as far as the Swiss school system. Just because foreigners are accepted in Switzerland to work does not mean that Switzerland does not have people to do the work, it just means that Switzerland has work! However, the antagonistic attitude is prevalent among foreigners who may feel helpless one way or another in the foreign country they reside in. They rationalize their dislike for their host country to make up for their feelings of powerlessness. But nonetheless, they continue to stay. Switzerland shares its wealth, but they are no fool. And if it comes down to others and their country, Switzerland will choose their country which is the right thing to do.

Exactly... Switzerland's top grossing company, glencore, would be the more obvious choice...

Indeed.
From my side: I absolutely love your writing style.

I left some ideas for the blog entry on economy at your other thread (in the family section), I missed this thread.

Ah yes, from all that copper they mine in Zug...

While what you say is completely true in absolute terms, the country is going down the drain, compared to its self in the 1970s, this is masked to many partially by global increases in living standards. The decline is quite slow, and the rest of Western Europe has reversed at such a rate that Switzerland, to many outsiders even looks like it has gone forward. As the West necessarily slows down, and ultimately overall growth disappears (you can't grow rapidly for ever in a finite space), Switzerland still looks like the best spot around her to park your bum.

This is one of the contradictions in Switzerland that I do not fully understand. If, as Prosperity argues, the country would choose 'the Swiss' before the 'others', it seems estrange that the educational system makes it so hard for the local kids to make it to the university. Especially because, simultaneously, the country fosters international companies to settle here through low taxation, being the result that the high pay jobs land in the 'foreigner' hands that Prosperity criticises (yes there is not enough qualified workforce for all those multinationals, at least in my experience). A review of the educational system by allowing more kids to the uni would solve many problems, from reducing costs to companies via increased local contracting ( and less HR competition) to a fair distribution of well paid work places. Which leads to less social fracture. Creating a bubble of rich foreigners among local families with modest income is not positive, neither for locals -it is simply unfair, nor for foreigners that see an anti-foreign sentiment grow fostered by the salary comparative disadvantage of many Swiss families.

This is one of the contradictions in Switzerland that I do not fully understand. If, as Prosperity argues, the country would choose 'the Swiss' before the 'others', it seems estrange that the educational system makes it so hard for the local kids to make it to the university, and simultaneously the country fosters international companies to settle here through low taxation, being the result that the high pay jobs land in the 'foreigner' hands that Prosperity despises as there is not enough qualified workforce. A review of the educational system by allowing more kids to the uni would solve many problems, from reducing costs to companies via increased local contracting ( and less HR competition) to a fair distribution of well paid work places to less social fracture. Creating a bubble of rich foreigners among local families with modest income is not positive, neither for locals -it is simply unfair, nor for foreigners that see an anti-foreign sentiment grow fostered by the salary comparative disadvantage of many Swiss families.

I'm not sure that the "anti-foreign" sentiment stems from what I imagine (no data) is a VERY small number of well-paid expats. In my experience, most sensible Swiss people recognise that non-Swiss companies bringing HQs here has "trickle down" benefits for the whole economy that just wouldn't exist if the economy was solely reliant on Swiss businesses.

No - the "anti-foreign sentiment" is based on something more primitive than jealousy of the rich I'm afraid

I'm also afraid that this primitive thing is often fed by bad behaviours from "foreigners" in Switzerland (or migrants)...Ie: drug dealing, or even simple false racism allegations, or unfair complains because here, "it's not like home" (where's the brown sugar, blablabla).

--> tolerant and best behaviours from the migrants/foreigner, even when facing xenophobia or racism, is a must to start reversing the trend of "anti-foreign sentiment".

Staying calm to confront conflict is a good strategy, yes, at least as a first approach (in some situations an individual must evaluate if the aggression has gone too far, you may concede).

But I am not so sure that the root of conflict foreign - local is only the primitive group bonding thing. In my perception 'The Swiss' are rational, well travelled, reasonable people (except for some, as usual), and when I have seen 'The Reasonable Swiss' complain on immigration they always mention the economic disadvantage topic, that their sons can no longer live in the city due to housing prices, etc etc.

In my opinion a minority is 'primitive' and hate for the shake of it, a majority is simply worried about the economic prospect for their children. This is why I don t get why their children can not have same opportunities to get a good education.