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The real inequality to be measured, relative to Switzerland, is that between the bankers and their international clients, on the one hand, and the citizens of t

The real inequality to be measured, relative to Switzerland, is that between the bankers and their international clients, on the one hand, and the citizens of the countries that those international clients take money out of. Switzerland's economy is incomprehensible if you do not consider the international context, the source of the funds that drive its banking industry, and the conditions in the countries from which those funds come. This is not a model replicable by all nations. There can be only a few Switzerlands serving clients from many countries, for the Switzerlands to work. In a case like this, capitalism done right in one country depends on capitalism being done wrong in others. It is a kind of informal colonialism (always the most lucrative).

maximente 7y ago
yep, this is a really important point. author subtly glosses over the notion that Switzerland was always more than shady banks, but this isn't clear to me at all; shady financial stuff is basically swiss bread and butter. in Europe, one study: > we estimate that close to 40% of multinational profits are shifted to tax havens globally each year. The non-haven European Union countries appear to be the main losers from this shifting. ref: https://www.nber.org/papers/w24701 https://www.nber.org/papers/w24701 also ref: "swiss sidestep" and how multinationals basically launder money thru Switzerland: https://www.opendemocracy.net/en/oureconomy/transfer-mispricing-the-jewel-in-every-multinational-enterprises-crown/ https://www.opendemocracy.net/en/oureconomy/transfer-mispric... lastly that Swiss banks actively obstructed justice during Obama's DOJ investigation. then the US sent them money to bail them out, allowing Credit Suisse/UBS to largely escape 2008 financial meltdown and continue to help wealthy US individuals evade taxes. to be fair this has changed as Switzerland is way more hostile to US tax evasion now, but they don't have a good record here.

maximente 7y ago

yep, this is a really important point. author subtly glosses over the notion that Switzerland was always more than shady banks, but this isn't clear to me at all; shady financial stuff is basically swiss bread and butter. in Europe, one study: > we estimate that close to 40% of multinational profits are shifted to tax havens globally each year. The non-haven European Union countries appear to be the main losers from this shifting. ref: https://www.nber.org/papers/w24701 https://www.nber.org/papers/w24701 also ref: "swiss sidestep" and how multinationals basically launder money thru Switzerland: https://www.opendemocracy.net/en/oureconomy/transfer-mispricing-the-jewel-in-every-multinational-enterprises-crown/ https://www.opendemocracy.net/en/oureconomy/transfer-mispric... lastly that Swiss banks actively obstructed justice during Obama's DOJ investigation. then the US sent them money to bail them out, allowing Credit Suisse/UBS to largely escape 2008 financial meltdown and continue to help wealthy US individuals evade taxes. to be fair this has changed as Switzerland is way more hostile to US tax evasion now, but they don't have a good record here.