Switzerland has the highest HDI in the world at the moment. HDI ( Human Development Index) is calculated through GDP per Capita, life expectancy and estimated years of schooling. Based on this, Switzerland is currently one of the best countries, if not the best.
Switzerland is a very rich country and only had 3% inflation in 2022. The reason for its wealth is its attraction for the rich. Switzerland is a neutral country, so it doesn’t have any enemies. It has lower tax rates than in England and it has multiple Cantons, like States in the US. This canton system is important for it‘s success, as different Cantons have different languages, taxes and cultures. Someone who doesn’t like a German canton with low taxes can move to a French speaking one, which is potentially more socially democratic and can still be in the same city.
Zug is a canton near the Canton of Zurich. It only has a population of 70,000 but most of the people there live only a 20-minute train ride from Zurich and have much lower taxes. This is similar in New Jersey in the United States. The cost of living in Zug is higher and to get from Zug to Zurich you need a train which is owned by the Swiss national train line.
Switzerland is very famous for being the most expensive country in the world. This is due to the high cost of living. The average salary is 60,000 francs, nearly double the average salary and three times the amount of that in Greece. As the salary is nearly double that of in the UK, the government only needs to tax half the amount to get the same amount of money. Due to this, more rich people move to Switzerland . Whilst the average salary is higher, taxes can be lower. More people come and this goes on in a loop.
If Switzerland is so expensive, some may wonder how Switzerland can be one of the biggest exporters in Europe. Well, as you may know, there are rich and poor in this world. China makes cheap products for more developed countries and poor people, whilst Switzerland makes expensive products for people with lots of money. Swiss Choclate is luxurious but expensive and Switzerland is famous for its watches; the top 10 watch companies are all based in Switzerland including Rolex. Switzerland is not only an exporter of luxurious products, it is also one of the biggest chemical producers and produces lots of medicine as well. Switzerland is already one of the richest countries in Europe with Liechtenstein, Norway and Ireland, but if you want to hear about the economic rise of Singapore or how Qatar is so rich, please read my other articles.