Switzerland is currently much richer than Germany.However, in my view, this could be similar in the foreseeable future.
Switzerland is richer for the following reasons:
- No wars (neither participation in wars, nor wars on their own territory) – thus intact infrastructure, no costs for reconstruction, no reparations or reintegration of lost parts of the country (e.g. alignment of East Germany with the standard by means of a solidarity surcharge and other relocation vehicles).
- Low tax burden for natural as well as legal persons/companies.
In many cases, Switzerland is also used as a tax haven or used for tax optimization. At present, there is still a holding privilege in which profits are transferred to Switzerland (to the holding company’s registered office) and can be taxed at symbolic amounts. Low taxes attract companies, which increases the capital stock and leads to jobs.
During the wars, a great deal of money and valuables flowed into Switzerland. Due to banking secrecy, a lot of money also flowed into Switzerland, which was wanted to be hidden by the owner. This leads to a large supply of money, which in turn leads to relatively lower interest rates. Lower interest rates are good for the economy and growth, as projects/projects can be financed more favourably.
This forces the economy to become ever more efficient in order to remain competitive (if the value of the currency rises, selling abroad/exporting becomes more difficult, as prices become more expensive for foreign buyers or margins for the exporter decreases, must be offset by efficiency gains). This also makes Switzerland relatively richer as foreign products become cheaper.
The 7-member Federal Council (executive at the federal level) is in principle placed equally by the same parties and thus leads to great stability. There is no opposition in the true sense of the word.
As a Swiss, I notice very negatively abroad how often strikes are made in the area of basic infrastructure (flights/trains) and what catastrophic consequences this has. The absence of strikes increases legal certainty for companies, resulting in investment. Moreover, the economic costs of the strike do not have to be borne. The lack of a “strike mood” also increases the productivity of the individual employee.
This allows them to be closer to the citizen and to make important decisions more holistically