World's Happiest Expatriates Live Here

[cavanami]

The cost of living in Switzerland is insane! WTF kind of survey is this

 

World's happiest expatriates live here

 

http://finance.yahoo.com/news/worlds-happiest-expatriates-live-025711977.html

 

On top of boasting exquisite fondue, scenic beauty and world-class ski trails, Switzerland is also the best country to be an expat, according to a new survey.

 

 

 

HSBC (London Stock Exchange: HSBA-GB)'s 2014 Expat Explorer Survey, published on Wednesday, surveyed over 9,000 expats across the world on quality of life, financial well-being and the ease of raising a family abroad.

 

"Not only are Switzerland-based expats enjoying the good climate and pleasant scenery, with the country home to the sportiest expats, but over half of the expats there also say they have a better work/life balance than they had at home," said Dean Blackburn, head of HSBC Expat...

 

China: a hotspot for high salaries

In spite of abysmal air quality in many of its major cities, China ranked in third place.

The primary reason: expats in China are finding themselves with more disposable income than most other places. China is home to the largest proportion of high-earning expats in the world - almost one in four expats living earn more than $300,000 per annum compared with the global average of 5 percent.

 

Raising a family

New Zealand came sixth in the overall rankings, but was voted the best destination for raising a family abroad.

The majority of expat parents living in New Zealand commented on the improved health and well-being and safety of their children, as well as saying they are bringing up more confident and well-rounded individuals.

 

Affordable living

In Thailand, where expats said they enjoyed a lavish lifestyle at a far lower cost than in their home country, was ranked seventh.

 

"However much you think you need to bring with you - don't. Or bring half. What you can get here is either better or cheaper, so not worth the hassle bringing it from home," an expat in Thailand said.

The remainder of the top 10 was also located in Asia, with Taiwan, India and Hong Kong ranking in 8^th, 9^th and 10^th place respectively.

[Guest]

Switzerland is an expensive country. If you asked a Swiss why this is so, he would probably talk about rents, the high standard of living, and high wages, but if you look more closely you will find that the main reason is the oligopolistic-corporatist structure of Swiss industrial, retail and distribution enterprises.

 

What does that mean? It means that people in Switzerland restrict competition as much as they can, organizing cartels and guilds to arrange oligopolistic prices which are far higher than the real value of the commodities or services involved. For example, with many imported goods the importer doubles the factory price and then sells to the retailer, who doubles it again. Thus the consumer ends up paying 4 times the factory price because there is no effective competition between sellers. In another country, sellers compete and lower their prices to attract more business, but in Switzerland they do not. Another example: In Switzerland, most trades are protected by corporations or guilds which restrict the number of people allowed to practise their particular trade, and set high, mandatory prices for their services. The funny thing is that these corporations are canton-based and so there are usually 26 different corporations for the same trade, each with its own price structure.

 

Why is that so? Switzerland is a very fragmented market, with different cultures and different languages every 50 Km. Moreover, people do not like to move and will remain in the same area all their life. So the retailers, for example, in any given area have a small, well-defined market where they know all their competitors well. Therefore, they are better off setting up an oligopolistic price than competing over a small market.

 

Why does it work? Swiss people are accustomed to paying high prices and they do not like to question them. They will merely say, 'That's the price!'

The Swiss economy has always been organized like this and many people profit from this system, so there is considerable resistance to changing to a freer economy. For example, if someone asks why driving lessons are 20% higher in the next canton, the only people likely to go to Bern to discuss this are the driving teachers, so in the end the odds are stacked strongly in their favor and the prices remain as they are. Besides, the Federal Government of Switzerland is weak politically - even weaker than in the USA - so the only possible vehicle for reform is not strong enough to challenge conservative interests.

 

Of course there's also the Samuelson-Balassa effect at work : if a worker can earn a standard wage for, let's say, a factory job, why would he take another job earning less? So, the person who cuts your hair will earn something close to what he would earn in another job with the same skill level. The result is the most expensive haircut in the world. between SFR 35 to SFR 50 for a normal men haircut.

What's the bottom line? You'll probably pay more in Switzerland for many things, but you'll get higher-quality goods. And anyway, you can still drive up to the next country, usually only a few kilometers away, to profit from the lower prices without having to pay any significant customs duties.

[cavanami]

Soooo, that makes ex-pats living in Switzerland the most happy...me thunk not so!

[Flashermac]

It means they probably have the most money, since Switzerland is not a cheap place to live.

[dean]

I wonder how many wealthy expats, like Marc Rich, chose Switzerland as home because they were fleeing the long arm of the law.

[baa99]

Best fondue in the world!

[Mekong]

Fondue always reminds me of this tune, Flesh Fondue make a Stew