Finland for Thought
             Politics, current events, culture - In Finland & United States

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I'm an American who's been living in Finland for five years. I started this blog to address some of the political, cultural, and current event issues in Finland and the United States. I am a strong advocate of liberty, individuality, equality, and tolerance. Enjoy!

14.7.2008

No minimum salary, but minimal salaries.

Finland has no mandated “minimum salary”. Someone asking that question will get the question back - “what will you be doing?” as the minimum salary in each job is more or less mandated by the comprehensive union agreements that differ a bit if you’re working in the public or private sector and also between industries (A lot of strikes recently have been about a job being outsourced and the new company having a different union agreement, cooks of bank cafeterias and cleaners at the paper factory come to mind). So everyone gets “union wages” in Finland.

But what are the wages then like? Taloussanomat did a survey on the average wages in Finland according to the average salary statistics by job classification and by gender, and compared the lowest rung of the ladder to the higher within the same profession. (The categories are by the Finnish Statistics Centre). Now it is said that the “wage differences in Finland are not that big”. Lets rephrase that, about as like the “cars are the cheapest in Finland” it makes everybody laugh as you need to remember the taxes on top. So the wage differences of the bring-home-pay are not as big in Finland - due to the progressive income taxation.

So who has the suckiest average salary doing a regular 9-5 workday your 38-40 hours a week? (Military not included.) A fraction under the 1600 euro limit would be for women a “farmhand” and for men a “laundry worker”. Thats about the lowest you can get… even a “cleaner” gets in the ballpark of 1700 euros average. But does education help? Do specialists get more salary? Do managers? That again depends on your profession. The lower rung of the specialist ladder is again farm work, a seminologist is in the 1700 euro ballpark. And if you get into mismanagement, the worst salaries are in the hotel- and tourism business.

Now as we’re talking of average salaries the survey also looks into the highest salaries. A stock and currency exchange banker or then your chief surgeon might get into the 5000 -6000 euro category, but thats the top end of the average “rich guys” salary. So what is the salary difference like? According to the nifty tax calculator provided by VERO ( just ballpark figures counted with 13 mo salary ):

1600e/month your income tax% is 16,5, take home pay ~ 1336 euros a month
6000e/month your income tax% is 36,5, take home pay ~ 3827 euros a month

So before taxes the income is 3,75 times, after taxes only 2,8… yay, socialism! BTW the SDP party secretary makes 6900 euros a month… yay socialism!

8.7.2008

Phils cousin gets the cheap chicken

Growing up in Finland I heard a lot from the politicians “its a lottery win to be born in Finland”. When I had grown up I realized “you require a lottery win to be able to live in Finland”.

Things are expensive in Finland - maybe not that expensive in comparison with the other Nordic countries with a similar taxation and geographical structure, but expensive to the average consumer as the purchase power in Finland is low. The Finnish financial magazine Taloussanomat wrote about the purchase power in Finland earlier this month. According to the article , “Finns are paying themselves sick” for goods and services. Lack of competition is given as one of the a reasons why for example groceries in Finland cost one fifth more than the EU average. Finland has been quite notorious for keeping foreign competition out, and now that there are no more barriers it seems nobody is really interested in coming over as the volumes aren’t there. So Finland remains a keskolandia.

Now being somewhere at the EU average is one thing, but starting to compare things globally doesn’t make the prices look any better. When Phil goes to buy a chicken in Finland, his cousin in the USA can buy four chickens with the same price! The Iltalehti had a comparison of prices for groceries in Helsinki, Stockholm, London and New York, and it seems in the UK and USA (and London and New York are expensive cities), you can get by with about half of what you pay in Stockholm or Helsinki. Of course one explanation is the sheer volumes that bring the prices down, but it still is peculiar while milk or potatoes cost approximately the same, in some products, like meat, the price differences can be quadrupled.

With the global food shortage being blamed on the biofuels is causing food prices to go up, it still doesn’t quite explain why in Finland you need to pay your ass off just to buy your basic stuff. Then again if Norwegians come to buy “cheap booze” from Finland, we can say theres a place where things are worse. Or are they - the purchase power in Norway is higher than in Finland . Your avarage consumer is faced with the problem of rising prices and already now the shopping habits of people are changing. Maybe next year this time I’ll be sharing a potato and brown sauce recipe.

20.6.2008

They ain’t pikeys, are they?

The Helsingin Sanomat has written about some British & Irish paving labourers who apparently have not had “trouble finding work without speaking any Finnish”. So that proves false the assumption Finns are discriminating xenophobes and racists. Doing a paving job for 3500, sans receipt, when the Finnish quote is 8500-10K and the material cost alone is between 2-3K though might have something to do with the equation. Also the claim that Finnish officials are xenophobes and racists is proven wrong, as if a local Finnish resident would be driving drunk, stealing and doing black labor without paying the social fees and VAT; they’d be in serious trouble. But EU citizens are free to do whatever they effin please. So apparently there is a “need for workers” in Finland indeed and the EU has once again proven to be the source of multiculturalism that enriches the nation. Again three basic theses regarding immigrants in Finland have been proven wrong. I find this quite hilarious, though there’s an owner of a campsite full of complaining Finns (as opposed to whining foreigners) that might not think I am so funny.

Cliff notes: Snatch in Järvenpää

2.12.2007

Finland aces PISA again!

Filed under: Education, Everything, Schools, Standard of LivingKristian  @ 6:46 am

plato.jpgFinland’s 15-year-olds are incredible! They are really some of the smartest teenagers in the world, and by my observations they are much more open and worldly than their parents who lived under difficult ideology-shaped conditions in the shadow of the Soviet Union. So what makes these kids such academic high achievers?

Having been born Finnish, I like to attribute it to genetics…but when reality descends upon my momentary loftiness, I realize that maybe the cold climate and boring lifestyle is more to credit. It makes studying so much easier than anywhere else. The lack of distractions is actually one of my own favorite reasons for spending time in Finland; I can really get some work done!

Even Finland’s recent mass murderer in Jokela was a studious sort. By now we all know that his readings included Nietzsche, Kant, Huxley… I won’t delve into any dangerous psychological analysis here—some short exposure to Pavlov many-years-ago, and my mouth still waters every time I hear a bell ring.

However, I do find it interesting that another one of his favorites was Plato. In those rare moments when Plato wasn’t pegging young boys in the ass, he was busy arranging the ’state’ into three discernible parts: philosopher-kings, soldiers and merchants. Generally, philosopher-kings rule, soldiers protect, and merchants ensure the economic viability of the state.

You can find Finland’s philosopher-kings in places like Espoo. They are the ruling elite who vacation in sunny locations around the globe (many rule corporations, not the state itself; I don’t think Plato had enough foresight to envision corporations as an extension of the state) and naturally there are plenty of soldiers everywhere, too. But where is the merchant class in Finland?

Of course it exists, but its membership is small. The post-war years saw a rise in collectivist thinking, punishingly-high taxation and socialist economic structures, leading to an environment of discrimination—and possibly even human rights abuses which plague the country to this day. Generally speaking, anyone who aspired to become successful sought safer abode for himself abroad.

It’s a tragedy, because these are precisely the people who would invest their time and talents into productive enterprises, and thereby provide jobs for everyone else. Instead, Finland now has a lackluster and overpriced domestic economy, and is highly dependent on foreign employers. It’s too bad for today’s PISA conquerors. Despite their hard work, when considering purchasing power, they can look forward to being among the lowest-paid smart people in Europe.

2.4.2007

Alko, Alkoholi and the Fleecing of Finland

Filed under: Drugs & Alcohol, Standard of Living, TaxesKristian  @ 2:23 pm

Once again, it looks like the Finnish government, in cohorts with the state-owned alcohol racket, Alko, is about to play the age-old trick of fleecing Finns out of their hard-earned money. Yes, the issue of raising alcohol taxes has resurfaced here in a country that already has among the highest alcohol prices in Europe.

Not surprisingly, Finland also has a high incidence of alcohol-related problems due to binge drinking; a commonality among countries that try to influence drinking behavior via raising alcohol prices. Will Finland ever develop a mature, central European drinking culture?

That remains to be seen.

But in the meantime, would you like to see how much this ploy costs the Finnish consumer? Consider that in Germany, .5L bottles of high quality beer cost about 55ct each at the supermarket. That’s 1.10 per-Liter. And wine is about half-price in Germany compared to Finland.

So, it’s not hard to imagine that the Finn overpays by at least 10€ each week, on average, even if he only enjoys drinks at home with dinner. Naturally, the overpayment would be much greater if he’d drink at Finland’s many overpriced pubs and restaurants. To place things in perspective, let’s consider the Time Value of Money.

Suppose he’d have the option to purchase alcohol in Germany (as I normally do) and could invest that 10€ each week in a Stock Fund that yields 10% growth-per-annum. In 25-years, he’d have over 55,000€ saved!

Wow! The Finnish alcohol ripoff has cost the price of a luxury automobile! It’s no wonder that Finns are among the poorest people in western Europe. By the way, would you like to see how Autovero will cost the price of a new flat?


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