The convincing vote “No” in Switzerland referendum on $25 minimum wage looks as a victory for right conservative thinking in the middle of the socialist and going bankrupt Europe. In fact it is just a small step opposite to the trend that cannot change the trend itself. EU, and the attached to it Switzerland, is a very leftish society. And it is still accelerating down the hill.
Switzerland will not avoid the pain of economic crash when it happens. Its businesses are much connected to EU-markets and are very dependent on them. Due to this some years ago Switzerland de facto killed its main export asset – the Swiss Franc. In an attempt to help exporters and control the increase of the exchange rate, the Swiss central bank used the so called “nuclear option”. It devalued the franc in 1 day (just like in Africa are doing this) and then established a cap of 1,20 francs per Euro. This crushed the confidence in the Swiss currency, accepted before as a “liquid gold”.
With its extremely high labor costs Switzerland is becoming more and more uncompetitive. Businesses are fleeing abroad. So the rejection of this obviously very high minimum wage is a good decision.
Anyway – just like any other European country Switzerland still has too left regulations with too much extras for workers, big vacations, still existing some firing regulation, etc. All this cannot survive in the competition of cheap Chinese and Asia workers and almost “wild capitalism” business environment.
But the biggest problem of Switzerland is not with itself, but with its markets. Despite the good situation in the country, in EU the economy is still in an impressively serious trouble. It is losing jobs and industries, and government debt is exploding. The markets are losing purchasing power, unemployment is jumping up and up endlessly. The only used medicine is money-printing that in fact is only postponing the inevitable.
Being dependent on these markets, Switzerland cannot survive as an isle of wealth among an economic desert. In fact, even if it survives and succeeds keeping industries, it will be flooded with immigrants from the troubled EU regions. Switzerland can sell on EU markets, but in exchange must open its labor markets to EU citizens. Any attempt to impose restrictions will lead to counter restrictions of EU that will hit the Swiss economy.
It is good all Europe to think like Swiss voters and start looking right. EU will collapse not because of Switzerland, but because of thinking too left and in fact – in the opposite direction. We will see exactly this in current week when elections for European Parliament are being held. The expectations are of extremely leftish vote, including even parties that present themselves are right, but in fact have left programs. And in addition as a flavor – some more Euro-skepticism and nationalism… EU will turn even more in left direction and this is not good news for Switzerland. The trend is strong and down.