Finland - The happiest country in the world?
From success story to socialist mess in record time.
TLDR: Finland is still an excellent place to do business and raise kids. I want Finland to succeed in the long term, I love Finland.
OECD Economic Surveys: Finland 2022
The OECD Economic Survey on Finland paints a troubling picture of the country's future, but Finland can still become a prosperous and successful nation with the right steps.
Firstly we have become complacent in believing that we are a Nordic welfare state forever, but the reality is that our economy has been stagnant since 2008. The reality is we are not a nordic welfare state anymore.
We are now piling on massive amounts of debt, a problem many Western developed economies face. The question is, how can we turn the ship around and avoid a long-term economic decaying? It will take decades to restore our economy, and that's only if we take the necessary steps to address the underlying problems.
Can Finland be a successful country even if we don’t have growth? Yes, if we have a stable and strong foundation, now it is only a deteriorating system driven by moral hazard and straight corruption.
Growth
Finland’s growth was a remarkable success story from sh#ithole country to one of the most successful countries in the world from the 1860s to 2008.
The best education in the world.
Innovative and competitive workforce. The world was envious of this remarkable achievement, and I still recall the news of how other countries were visiting here to marvel at how awesome this system was.
→ Not the best education in the world anymore… Huge problems, kids don’t know how to read and everybody gets a pass no matter what.
Grit and hardworking mentality. Clear mission.
The only country in the world to pay war reparations. Finnish-Soviet trade was important for growth but Finland also had a huge internationalizing mentality toward the west. Everybody understood we are a small country with a tricky geopolitical location and almost zero natural resources. We simply have to trade to get welfare here in Finland. The whole nation was behind this “mentality”. Everybody!
→ Now we have instead, "The thinking of 'my own people first' is harmful." Then we wonder why everything deteriorates. Why even work hard here? Just show up for 7.5h. Work for the state? Have long holidays and take sick leave when you want, there is no demand for results and productivity. Companies, unions, and government officials are stuck in the ’70s.
Top-tier R&D, adaptability, a collaboration between state & companies & workers.
World leader in Pulp & Paper, then in ICT. We had Nokia, imagine if it was Apple now. In 2006 apple was 72bn and Nokia 83bn. Today apple 2trillion and Nokia 23bn.
→ Now we hope that some miracle will happen, and we are the “Saudi Arabia of Hydrogen” by some miracle, what a joke. The government just throwing subsidy money to scams and start-ups. Driving this “Green transition” plan with just emotions and pure hopium. This results in policies that are harmful to our current industries and future growth.
No growth since 2008.
Nothing amazing in other nordic welfare states either… Still, outlooks are a lot brighter than in Finland. They have a stronger and more stable foundation and don’t have to fund it with debt. Surprisingly there are still countries that save money.
WTF happened in 2008? Oh yeah, the financial crisis. How to fix problems? Take more debt.
The total % of the debt of GDP stayed pretty much the same in other nordic countries but in Finland, it exploded after that. In 08, we had the smallest total % of GDP.
The total % debt of GDP stayed pretty much the same in other nordic countries but in Finland, it exploded after that.
We have stayed in crisis mode. We have to take debt it is a crisis! Yeah, you fix it and improve it, then pay back the debt. No, we want more control and power so we take more and more debt. We don’t want to fix anything, just more money, why even bother we only have a 4-year term? We had some attempts like the “competitiveness agreement” in 2016 but we would need a lot bigger reform to turn the ship around.
The same is happening almost everywhere around the world.
In other Nordics, household debt is higher. We don't have much wealth, though; what we do have is virtually entirely invested in our homes.
Budget for 2023
Debt will grow to 28 062€/citizen.
Tax Revenue 64,5bn7
Random revenue 6,5bn (EU subsidies, pension transfers?)
+ DEBT 8,2BN
So where the fuck money goes? 80,5BN
The majority goes to municipalities to run “core services” (mainly healthcare 20,6bn) 34,2bn this has doubled from 2014 (total budget 54,1bn).
We have huge ongoing reform to make a more efficient system and lower the costs, but the opposite is happening… Costs will just increase and create more inefficacies. Already. Our loved Minister of Family Affairs and Social Services is already asking 500milj more for healthcare since nothing is working (3 weeks).
+ More old people (a lot more compared to what we have now)
+ Work-based immigration… We don’t have it. We import only people who currently put even more stress on healthcare/benefits expenses.
Currently, we have huge problems in public healthcare. Nothing works and, people don’t get treatment, and nurses & doctors quit. How is it even possible if the expenses have doubled since 2014 but healthcare is only getting worse?
Have to pay that debt back… Interest expenses are on the rise. In the beginning, all debt is fine, but then suddenly, it is a problem.
How to tax more
We already have one of the highest income taxes in the world, and what is there even to tax if the top 10% in Finland earns around 60k a year?
How to tax more? The majority of the income taxes are paid by 30-40k/year earners totaling €5bn. Tax more high-income earners? The problem is we don’t have high-income earners. Currently, politics are concerned with income inequality, I would be more concerned that we simply don’t have enough rich people. The positive note is that we would need only 1-2 Elon Musk here, and all our problems would be solved.
Taxes are more than fine if you get a return on your hard work. I was lucky to have a very safe childhood and excellent education. Okay, I barely passed everything when I was young and I have a severe reading disability. I did not see my parents when I was a kid both parents were entrepreneurs, so the Finnish schooling system had to carry me to early adulthood. From vocational school to study further vocational specialists to spark the need to study more and finally to go to university to study economics. I still feel like I am only starting to learn about economics after running my business for seven years and sinking +1k hours into the bitcoin rabbit hole. Would this be possible today? A massive amount of our youth is feeling extremely bad.
I was a happy taxpayer for a long time. After covid, not so much, where is the return? I have employed over 30 people, at best 11 full-time. Worked 80h weeks without holidays (2 days holidays when my daughter was born). Have paid over seven figures in taxes. I was driven mainly by stupidness and being proud Finnish, paying back for all the good public education/healthcare I received when I was young. Ok, I also love to challenge myself and torture myself with work. For what?
This kind of system creates only slaves. Boggles my mind how the little ants just consume everything and invest whatever is left in their own houses. Can’t blame them: it’s the smartest move in a system where there is little or no incentive to work more or invest. How is it possible that we little peasants who invest a little bit get taxed crazy and all the big unions, funds, etc get 0% tax? So why bother? I get it, just consume and let the government take care of me. Die at age 25 and get buried at 80.
How to fix this?
A: Take more debt - As much as possible and try to invest it in at least something that could generate wealth and prosperity in the future.
We are part of the European Union and soon part of a European federation. The majority was against this development but now it seems like it’s inevitable since there are no other options. (This will turn Europe into China-like socialist system, which will be horrible for freedom and love.)
Joint debt it will be, so why not just take more debt? Italy, at the moment, has 170% debt as % of the GDP. We have a long way to go!
B: Start to innovate and focus on being the world's best in at least one area.
Become an agile small country leading the way in innovation. We used to be the best, so we could do it again.
+ Extremely painful reforms… 2016 competitiveness agreement but 5x this.
+ Invest a lot more in education - Make it top tier in the world.
+ Copy what is working around the world. We are a small country we can do it if everybody is on a mission again.
→ Denmarks labor markets? Huge flexibility.
→ Best tax practices from Estonia? We need better incentives to work hard and invest more. GROW THE PIE it benefits all finish people.
→ Cut the role of government to a minimum. The results are extremely bad, we now have had almost every possible combination from left to right-wing governments, and the results are shit. The Covid pandemic showed us that a lot of these government officials are extremely stupid and useless. Let them run the army, healthcare, schools, and everything else private —> Smaller budget, and THE PIE WILL GROW.
+ We once paid huge war reparations, so why not get rid of the debt or at least get it to a more manageable level like in other nordic countries? It is possible if we work hard together and are on a mission. Now we are just fighting. We should actively seek solutions together, we are in the same boat in the end and every Finnish person wants Finland to succeed in the long run.
C: Just continue to do the same…
I am afraid that we simply won’t do anything. We are flamboyantly throwing taxpayer money into whatever bill subsidies, development cooperation, and the world's most expensive biking bridge, for example.
Everything will erode slowly but surely, it will take decades. Our time preference is extremely low nowadays, thanks to our corrupted fiat money. Our political parties are also extremely similar, the masses simply don’t want any change. Hey, let’s cut one billion from the budget and let economic growth take care of the rest… Hope is a shit strategy but I think the masses have also given up, or they simply don’t care anymore?
What can a sovereign individual do?
Here is what I am doing:
I have run my business down from employing 11 full-time to currently two part-time and one full-time. Now I focus 100% on making my presence irrelevant to business. This takes time but it is possible. Of course, my personal income will drop and quality will go down. I could also go do some 37,5h meaningless job and study/learn even more than currently.
→ Focus on learning more skills and developing a business that is non-location & time-dependent—a more profitable & better business than the current one. I can also take this business to whatever country best suits the sovereign individual.
I will not invest a penny in Finland.
Stack them sats, the best way to transfer wealth, and the best global savings protocol.
I own nothing in Finland - Why would you if all assets are taxed to death?
Debt-free - I don’t need to wait to sell my shit etc I can just leave if I want.
Living a smaller budget than when I was a student - Build that fund and cushion.
I will support only local and small businesses.
This kind of system rewards being average… So be average. I focus more on family, learning, and exercise. Wish I had figured this earlier.
Finland is still an excellent place to do business and raise kids. I love Finland. My generation will be more than fine, but what about my kids and the next generation?
I will start learning what places could suit best for sovereign individuals. What are your top countries?
Sources:
https://www.bis.org/review/r070424b.pdf