Why Switzerland's Economic Model Is Falling Apart

Because nothing lasts forever.

[sunny_muffins]

Misleading title: It should be "Why Switzerland's *Banking* Model Is Falling Apart"

[Emily-nrtz]

Hello, I have a banking and finance degree in Switzerland. My thesis largely focused on the macroeconomic model of Switzerland. While the banking sector is large in Switzerland, much of the swiss economy focuses on exports. Especially in pharmaceuticals, engineering services, and the like. However, let me give you a rundown of the "failing" swiss economic model. Switzerland has, for a long time, sustained their growth, with their GDP growth rate only falling twice since 2008. However, they have kept unemployment below 5% since 2008, and inflation below 2% until 2020, and has been decreasing since. They have been, quite frankly, a statement of stability. This video largely aims to capitalize on a common stereotype that people associate with Switzerland, which is that they are sneaky, and its where rich people go to hide their money. To the creator, your video, quite frankly, is spreading false information, encourages biases, and should be taken down. To everyone else, this is your reminder to not believe random people on the internet. Please educate yourself from trusted professionals, and economists if you're interested in these concepts.

[jb.]

The banking sector makes up less than 10% of the Swiss economy. Yet watching this video gives the impression that the whole Swiss economy revolves around its banks, like the Cayman Islands.

[james.atkins]

Some economists have projected that parts of Europe could slip into a recession for a portion of 2023. A global recession, defined as a contraction in annual global per capita income, is more rare because China and emerging markets often grow faster than more developed economies. Essentially the world economy is considered to be in recession if economic growth falls behind population growth.

[secrets.]

The Swiss is a large exporter of Watches, Food, Pharmaceutical Lroducts, Machinery, etc. They also are very good in the Tech sector, Professional Services, Insurance, Engineering, etc. Switzerland also received a lot of tourists relative to the size of its economy. So Switzerland will be just fine.

[tobiwan]

The Swiss banking sector is much smaller than people believe. It only makes up a small percentage of GDP, even compared with the UK. There are other sectors that generate more wealth for Switzerland: Commodities Trade, Pharmaceuticals, tech industry, etc.
You also should not forget that Switzerland simply just has enormous wealth that serves as a stabilizer. Despite the banks going downhill for 15 years, the GDP and private wealth only went up.

[phenomenonautumn]

Every country has its flaws and problems. However unlike some other European countries, Switzerland does not have to be afraid since they are a very innovative, resourceful and educated country. It's only the bankers that need to be afraid.

[mottetar]

I must always laugh when I check out those videos about Switzerland. They just have no clue about the strengths of this country. Sure, it's better to have a strong banking system and I admit that the size of UBS vs. the Swiss GDP has become worrysome since the taking over of Credit Suisse.

Anyway, Switzerland leads the world for the 12th year in a raw according to the Global Innovation Index, far ahead of the US. It's 7th or 8th in the world for many years in new brevets, before large countries such as UK and Italy.
In addition, it's a very well managed country with ca. 30% debt ratio to GDP, the lowest of western economies. This year the state budget will be very close to be balanced. The political system is very stable with no such anger from the population as we see in a lot of developed countries. There was no quantative easing after 2007-8 financial crisis. We had some quantitative easing to support businesses during the pandemic, but there was a tightening since and it came back to normal trend, so there is a lot less inflation and inflation pressure than most developed countries.

So, there is one major reason to put your money in a bank in Switzerland (however maybe not UBS) : the Swiss franc will continue to raise vs. other main currency. Euro is at a historical low, USD are close to that point and will continue to fall due to their public debt and high inflation. I prefer to have my spared money in Swiss francs. I think I will be long dead before Switzerland collapse called by many youtube amateurs will take place.

[anniezeng]

I see 2-3yrs recession. Fed will raise interests in Sept 2022 if inflation doesn't peak. Inflation is producing a slew of problems throughout the world, including food shortages, diesel and heating fuel shortages, and housing prices and financial market crash. This global collapse might end up being a part of us for a very long time. With inflation currently at about 9%, my primary concern is how to maximize my savings/retirement fund of about $300k which has been sitting duck since forever with zero to no gains.

[paweborkowski]

Just wondering.
I've watched a couple of your videos and I'm curious: is there a country that isn't falling apart (or hadn't fallen apart)?

[RaymondKeen.]

In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

[LucaBaldelli]

What a bunch of croc. Sitzerland has the best universities in all of continental Europe. It is consistantly ranked as the most competitive country in the world, has one of the highest GDPs on the planet, one of the strongest currencies in the world, its currecy continues to strenghen against the dollar (since 1971 over 500%!!), aganst the Euro, the GBP and the Yen. Notice a pattern? Switzerland is the only country on the planet with a true, direct democracy where the people actually have a say in their destiny, has the second highest life expectency on the planet, the highest prodution of patents per capita and produces more than TWICE the patents per capita than the second ranked country Sweden per year. Just think about that for a second. More than TWICE as many patents per capita per year as the number two nation in the world! Patents are one of the key drivers of GDP!

You say how unbelievably important banking is to the Swiss "economic model", which effectively demonstrates how little you understand about that country. The whole financial sector in Switzerland is approx 10% of GDP. However, the Swiss include the huge Insurance business in that 10%. If you delve a bit deeper into Swiss economic statistics, you discover that the actual banking industry is only approx. 5% of Swiss GDP. However, in your video, you use that small 5% sliver to predict the future demise of the "Swiss economic model" and its wealth. Big mistake.

I have bad news for you: the Swiss economic model is just fine, thank you. Its prospects are fabulous and it still is - and will continue to be - vastly more successful than any EU or OECD country. Most EU and OECD countries (including the US of A) will continue to fall further behind Switzerland over the next decades, while Switzerland will continue to propser and increase the well-being for its citizens.

An example of an actually failed state amongst the G7 and in the EU - just for good measure, you ask?
Italy has produced a total combined GDP growth from 2005 to 2021 for its citizens of how much?? Yup:. a big, fat ZERO. ZILCH. NOTHING. 16 years of solid failure and stagnation. Loss of wealth. No progress. No future. No economic model to speak of. Just all encompassing, national, economic failure. Now THER'Es a country your titel would actually apply to since decades! Italy's failure also affects way more people as well. Can we expect a video on the massive failed states of the EU and the OECD anytime soon, or is your focus an bogus stories on the "falling apart" of the Swiss economic model just so time and resource consuming? 😂😂 Or perhaps your're being paid for nonsensical, politically manipulating videos to distract from the actual national failures?

BTW: How much has Switzerland's GDP grown during that same period as Italy? Yup: 53%. Now suddenly, Italy has had two years of growth. Why? Because it has received 257 BILLION!! Euros in political ransom from the European money printing presses (for not leaving the Euro) to "invest in the green future". Haha. 🤣😂 If you take that princly sum of printed political ransom out of the GDP calculation, Italy still has ZERO growth, while Switzerland consistantly produces actual, real growth and prosperity decade over decade. Are you perhaps starting to get the REAL economic picture, or are you politically just too fixated on the Swiss banking industry myth you're cultivating in you video? 🤣🤣

[TheSandkastenverbot]

So according to your theory Switzerland's economic model is banking secrecy and that's all? 🤣

[kevinfaith-oygh]

Sometimes it's not the best way to keep your financial in the bank because it's won't grow, keeping funds in the best way is to invest it and see more coming.

[christianr.]

don't you ever dare to criticize Switzerland, my favorite country :) But honestly, Switzerland is more, than its banking system. The best about Switzerland is its political system and its people. It is a bottom up society, very decentralized and with long standing tradition of independence and autonomy. People can decide many things via referendums, instead of government telling, what to do and how to think.

[alexp]

Switzerland has been my favorite country since I first visited in 1969. Even as a kid, I knew it was very special. As a person who admires quality, cleanliness, craftsmanship, beauty and class, for the individual who works with their hands there is no place better on Earth! The Swiss people are very smart, educated, elegant and hard working. I began working with Swissair in 1987, and learned how to do things right. Overall, I term Switzerland, "A culture of quality". With that being said, not everything by any measure is perfect. Swissair went out of business in 2003 after 71 years of what many argue was the world's best airline. Why? EU consolidation with the introduction of the Euro into neighboring countries, excessive debt and overreach by its executives to maintain and expand market share. The culture of quality remains but I am seriously concerned what will happen if Europe falls apart due to lack of energy, destabilization, serious harmful influences by the World Economic Forum, the EU and US, which certainly have not helped Switzerland in the least. To me, should Central Bank Digital currencies be forced upon Western Civilization, I believe firmly that freedom will be erased, and all of Western society slowly crumble into chaos. People are not going to allow governments, meant to serve them, force them into virtual, digital slavery!

[semsemeini]

The Swiss still have great companies and tourism. Not just banks.

[fabswisss]

Okay, I thought this video was about why the Swiss economy was in bad shape. In reality, this video only talks about the banking sector which is not significantly larger than in other countries. It is mainly the export industries (pharmaceutical industry, chemical industry, microtechnology, industrial electricity, industrial technology, watchmaking, etc.) that make money in Switzerland. The most powerful companies in the country are not companies that have relocated to Switzerland for tax purposes but companies that were created by Swiss people from the start (Nestlé, Novartis, Roche, ABB, MSC, etc.) and the success of these industrial companies is not linked to the success of the financial sector. Moreover, Switzerland remains one of the most important commodity trading centres in the world despite the collapse of Credit Suisse, which means that the collapse of the banking sector does not mean the collapse of the financial sector. And in particular, the collapse of the banking sector does not mean the collapse of such a diversified economy

[BDee]

Every country definitely seems broken this day and age.

[IvanBogdan-qwyq]

Hey guys, I'm looking to invest but I don't know anything about the market. Any help? As well who can I reach out to?