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Actually the euro is a big reason Finland does so poorly. For instance Norway has export problems right now due to low oil prices. But since the krone can devalue, then unemployment is not increasing to much and it improves Norway long term competitiveness.
When exports drop, then there are three ways of reducing imports. Either by devaluation, wage reductions or by getting higher unemployment. Finland ended up with the last option.
Actually the euro is a big reason Finland does so poorly. For instance Norway has export problems right now due to low oil prices. But since the krone can devalue, then unemployment is not increasing to much and it improves Norway long term competitiveness.
When exports drop, then there are three ways of reducing imports. Either by devaluation, wage reductions or by getting higher unemployment. Finland ended up with the last option.
You can't compare Finland and Norway.
Norway lives thanks to its natural ressources and a really good management of those ressources. But unlike you seem to think Norway's unemployment rose by 25% between March 2015 and March 2016, GDP shrank by 1.2% in Q4 2015, deficit is growing fast and for the first time the 2016 budget will withdraw more cash from their oil fund than it'll get from oil revenues and finally the krone is falling. As you can see even with a full control on their currency and a sovereign fund full of cash things aren't going so well in Norway. But, still, they are handling it quite well knowing how oil dependent they are.
Finland just does have much much less natural ressources. And while its GDP shrank on Q3, it rose on Q4. Euro doesn't explain much of the European turmoils beside the Greek one.
Norway lives thanks to its natural ressources and a really good management of those ressources. But unlike you seem to think Norway's unemployment rose by 25% between March 2015 and March 2016, GDP shrank by 1.2% in Q4 2015, deficit is growing fast and for the first time the 2016 budget will withdraw more cash from their oil fund than it'll get from oil revenues and finally the krone is falling. As you can see even with a full control on their currency and a sovereign fund full of cash things aren't going so well in Norway. But, still, they are handling it quite well knowing how oil dependent they are.
Finland just does have much much less natural ressources. And while its GDP shrank on Q3, it rose on Q4. Euro doesn't explain much of the European turmoils beside the Greek one.
You never talk about unemployment in percentage increase. It could have gotten a lot worse than an increase of 1% in unemployment. It may increase slightly more, but it will still be almost half of Finland.
The wealth fund helps, but it cannot stop unemployment, because spending too much leads to a stronger currency. If Norway was part of the euro, this oil price drop would be devastating. Many oil fields are now returning a profit due to the low currency, with the euro that wouldn't be possible. We don't have to look at Norway either, UK devaluation after the financial crisis was also very beneficial.
I really do think Finland would have been in a much better position, if they didn't join the euro.
I'm undecided on basic income. I see good things, I see bad things. But the experiment will be a ~30k target group, so even in the worst case the cost will be less than the purchase price of one F-35 fighter. I think it's a very good thing that the experiment will be carried out.
Oh please Finland is fine. If Finland can be called 'doing poorly', 97% of the countries out there should just flush themselves down the toilet. Really which developed countries are doing exceptionally well, economically speaking, in 2015 and 2016? I can't think of any. It seems like the situation everywhere is simply either stable, bad, or disastrous.
Last edited by Greysholic; 03-08-2016 at 07:18 PM..
Finland has a higher GDP per person than Germany, France or the UK. If Finland is a sick man, what does that make Germany?
Finlands problem is that it has a huge border with Russia, and trades with Russia a lot, so when Russia runs itself into an economic ditch, that impacts Finland.
Consider what a state Canada would be in if its biggest trading partner, the USA, imploded like Russia does.
Finland has a higher GDP per person than Germany, France or the UK. If Finland is a sick man, what does that make Germany?
Finlands problem is that it has a huge border with Russia, and trades with Russia a lot, so when Russia runs itself into an economic ditch, that impacts Finland.
Consider what a state Canada would be in if its biggest trading partner, the USA, imploded like Russia does.
Finland has a higher GDP per person than Germany, France or the UK. If Finland is a sick man, what does that make Germany?
Qatar has more than 2 times the GDP of Finland, so according to your logic, Finland is doomed.
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The Finnish are a beautiful people with wonderful egalitarian values. I hope they bounce back quickly!
