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This makes no sense, the majority of the inflation is simply due to rising energy prices, what does the small Estonian startup scene have to do with any of this
by Etheryte 4y ago
This makes no sense, the majority of the inflation is simply due to rising energy prices, what does the small Estonian startup scene have to do with any of this?
- _njyk 4y agoIt's a mix, but startups clearly skew prices higher. Salaries gets higher too because of much corporate cash, there is this nasty infinite loop of inflation -> salaries -> inflation -> salaries. This is why in the newspapers we occasionally see rants from the population that foreigners destroy the quality of life by pushing prices higher. One cause is that there is a limited amount of space in Tallinn but high attractivity for IT foreigners (due to low taxes and high startup funding). This means that good housing is though to find for a decent price (check kv.ee for example), and that there is not enough housing for everyone. Not enough housing means lot of construction needed. Lots of construction worldwide + scarce construction supply + abundance of money + lot of people = potential housing catastrophe. Concretly, for example, I wanted to buy a reasonably priced house in the countryside (500K EUR for 160m2 / 1700sqft), and someone who sold his Pipedrive or Transferwise shares (I don't remember) came and offered over 100K more than the list price. This is very broken (and I say that though I am also a startup guy, so I feel it's sad/wrong for the non-IT Estonians). The city also have 50K to 80K refugees that came in a few months. Where do you host them ? Well, you pay high price for rent.
- djhn 4y agoI noticed recently when looking for a job that I was getting higher offers and in general seeing higher salary ranges in Tallinn compared to Helsinki. About 20 % higher.