Finland: Kicking the Can Down the Road to Nowhere
A follow-up on Finland's political landscape, the consequences of inaction, and the country's uncertain future
In January, we took a hard look at Finland's future, uncovering a troubling mix of economic stagnation, growing debt, and a struggling welfare system.
As an entrepreneur and parent, it's frustrating to see these problems persist, leaving many Finns feeling helpless as their assets and purchasing power dwindle.
After the recent election, it's time for a follow-up: Are we any closer to solving these issues, or are we just kicking the can down the road?
The Aftermath of the Election
This was a big victory, for let's not do anything and keep everything as is. Small parties got massacred.
National Coalition Party (Most socialist "right-wing party in the world") 20,8%
The program here: - Do you find any change? No changes. Debt stays the same. Taxation remains the same growth will solve all our problems? I wish it were this simple.
Finns Party 20,1%
Social Democratic Party of Finland 19,9%
Everything will remain the same in the next four years. There is zero incentive for government officials to change anything for the better same goes for the member of parliament. So what do they even try to fix?
Think, for fuck sake.
The "system" is broken.
The power is also significantly centralized - Nobody cares.
Finland's Structural Problems
Short-term political gains over long-term economic stability. This is how politicians think around the world and in Finland.
By avoiding the difficult choices needed to address these structural problems, Finnish politicians are effectively "kicking the can down the road." This approach may temporarily shield them from political fallout but does not solve the underlying issues. Moreover, this inaction can severely affect Finland's economic growth, public debt, and citizens' well-being in the long run.
1. Demographics
Aging population: Finland's demographic shift is a ticking time bomb.
The "welfare system" was created when BOOMERS were the biggest demographic. They only had to serve a small amount of "old people." Well, now the BOOMERS are retiring. Who will pay the bill? There are fewer workers than retirees. The system does not work this way.
Purchasing power deteriorates faster for workers than pensioners, and do you think the system will sustain this?
Yes, we need more immigrants, but we need highly educated immigrants willing to work hard. Why would they come here? Now we get immigrants who burden the welfare system. Even Germany has started pushing a point system for immigrants.
This is not a problem just in Finland. For the sovereign individual, this opens opportunities as nations compete for a capable workforce.
2. Rigid labor markets:
It is tough to adapt to changing economic conditions. The world changes fast. Before covid, I employed 10-14 people. Now three people. Will I hire new workers? No, I will rather lose customers. So what incentives do I have to hire more employees? Zero, fucking zero incentives. If I make a mistake and hire the wrong person for the job, I risk losing the business, or I do the work of 3-5 workers.
This will further stifle growth and innovation. We want to be stuck in the '70s.
We should embrace innovation and AI and create better incentives. Entrepreneurs want to employ everybody.
AI could replace 99% of the jobs of government officials. Come work for the private sector so we can pay more taxes. That's a truly patriotic act, fucking losers.
Have you created or contributed anything of value to Finland? You think you are, and you think you know it better than we hard-working peasants.
Let's unite as a nation. We all want the best for Finland.
3. Lack of economic diversification
Our stock market looks the same as in the 70s. Bank, telecoms, forestry, metals. Yes, we had Nokia. We have fantastic companies, and these are the sole reason we have any welfare here - we need more value creation.
We desperately try to become a "superpower of clean, affordable, and reliable energy." Throwing subsidies everywhere, is there no better use for taxpayers' money? How do you think this will end when these government officials and members of Congress decide who should win?
Look at their track record. They will fuck it up. They are foolish and know nothing about business.
Today you can invest around the world. Why would you want to invest in Finland or own Finnish companies?
4. Slow productivity growth:
You saw what you reap. After all the above you think our productivity would magically grow? Think again.
Competitiveness and productivity growth will erode even faster.
5. The role of the older generation and middle class in the current situation.
It's vital to understand that Finland's present challenges aren't solely the fault of politicians and the government. The general population, especially the older generation and the middle class, has played a role in creating this situation.
Many Finns have resorted to taking on hefty debt to maintain appearances and keep up with their Nordic neighbors. With declining purchasing power and stagnant salaries, debt becomes the only option to sustain a specific lifestyle. This trend results in a culture of living beyond our means, worsening the nation's economic issues.
The “boomers” with extreme consumerism with more and more mentality.
The current middle class follows in their footsteps but funds this lifestyle through debt.
Our time preference is alarmingly low - we're constantly seeking shortcuts, no long-term plans, just moral hazard.
This attitude has led to an underappreciation of entrepreneurship and side hustles. Many Finns view such ventures as risky or foolish and prefer to own nothing but their walls. Are we afraid of taking responsibility?
But there's hope for the future, as younger generations seem more open to exploring different paths and experimenting with new ideas.
Younger generations are keen on owning equity and embracing entrepreneurship.
This is wonderful, and we should embrace it.
Now is the time for everyone to take an active role in shaping Finland's future. We must embrace change, seek new opportunities, and acknowledge that each of us has a part in addressing our nation's challenges.
After all, who wants to get buried at 25 and die at 84?
Bitcoin emerges as a potential escape valve for the sovereign individual. By transcending national borders and offering a degree of financial autonomy, Bitcoin may serve as a hedge against economic instability and a tool for those seeking to protect their hard-earned assets amidst the uncertainty of our ever-changing world.
The Rising Debt and Stagnant Growth
From 1960 to 2008, Finland's average annual GDP growth rate was around 3.6%. That is massive; read more.
Rapid growth during the 1960s and 1970s.
Moderate growth in the 1980s and 1990s.
Growth has slowed down significantly since 2008. (0,4%)
It is acceptable to take debt if your growth exceeds the debt servicing costs and you can invest better. Currently, we have no growth, and our expenses are on the rise. This will create a doom loop, and deterioration will accelerate.
Why is growth important?
If Finland had a growth rate of 0.4% from the 1960s, our GDP per capita of $7,987, Finland would rank much lower than its current position. Countries with a similar GDP per capita (in constant 2010 US$) in 2021 include Honduras ($7,690), Cambodia ($8,058), and Zambia ($7,829).
Let that sink in.
We are still a top-tier country similar to Germany, Sweden, and Belgium, but for how long? Change and deterioration take time. How will Finland look in 20 years? What kind of opportunities will my kids have?
Conclusion
In conclusion, Finland finds itself at a critical crossroads. While we have enjoyed considerable success, the current trajectory paints a grim picture of our future. Our once-thriving economy has stagnated, and our political leaders seem more interested in preserving their positions than tackling the country's structural problems head-on.
The burden of responsibility falls on every Finn. Wake the fuck up, Finland!
We must demand more from our politicians and hold them accountable for their inaction.
It's time to stop burying our heads in the sand, pretending everything will be okay if we keep going as we are. We owe it to ourselves, our children, and future generations to take a stand and fight for a brighter future.
We need to embrace innovation, adaptability, and risk-taking.
We must recognize that living beyond our means and drowning in debt is a dead-end road.
We have to strive for financial autonomy.
Our actions today will shape the Finland of tomorrow. It's time to step up, take responsibility, and demand better from ourselves and our leaders. How will future generations look back on this time? With pride?
Don't let Finland become a cautionary tale for future generations, or you are the 🤡.
Sources and further reads: