I’m beginning to think that people from some nations are smarter and more rational than others.
That may explain, for instance, why voters in Estonia support fiscal restraintwhile voters in France foolishly think the gravy train can continue forever.
But I’m not making an argument about genetic ability. Instead, what I’m actually starting to wonder is whether some political cultures yield smarter and more rational decisions.
Switzerland is a good example. In a referendum this past weekend, an overwhelming majority of voters rejected a proposal to impose a minimum wage. Here are some excerpts from a BBC report.
Swiss voters have overwhelmingly rejected a proposal to introduce what would have been the highest minimum wage in the world in a referendum. Under the plan, employers would have had to pay workers a minimum 22 Swiss francs (about $25; £15; 18 euros) an hour. …critics argued that it would raise production costs and increase unemployment. The minimum wage proposal was rejected by 76% of voters. Supporters had argued it would “protect equitable pay” but the Swiss Business Federation said it would harm low-paid workers in particular. …unions are angry that Switzerland – one of the richest countries in the world – does not have a minimum pay level while neighbouring France and Germany do.
Every single Swiss Canton voted against the minimum wage.
That means the French-speaking cantons voted no, even though the French-speaking people in France routinely support politicians who favor bad policy.
That means the German-speaking cantons voted no, even though the German-speaking people in Germany routinely support politicians who favor bad policy.
And it means that the Italian-speaking canton voted no, even though the Italian-speaking people in Italy routinely support politicians who favor bad policy.
So why is it that the same people, genetically speaking, make smart decisions in Switzerland and dumb decisions elsewhere?
I don’t have an answer, but here’s some more evidence. As you can see from these passages in a New York Times story, the Swiss have a lot more common sense than their neighbors.
“A fixed salary has never been a good way to fight the problem,” said Johann Schneider-Ammann, the economic minister. “If the initiative had been accepted, it would have led to workplace losses, especially in rural areas where less-qualified people have a harder time finding jobs. The best remedy against poverty is work.” …“Switzerland, especially in popular votes, has never had a tradition of approving state intervention in the labor markets,” said Daniel Kubler, a professor of political science at the University of Zurich. “A majority of Swiss has always thought, and still seems to think, that liberal economic principles are the basis of their model of success.”
Even the non-Swiss in Switzerland are rational. Check out this blurb from astory which appeared before the vote in USA Today.
…some who would be eligible for the higher wage worry that it may do more harm than good. Luisa Almeida is an immigrant from Portugal who works in Switzerland as a housekeeper and nanny. Almeida’s earnings of $3,250 a month are below the proposed minimum wage but still much more than she’d make in Portugal. Since she is not a Swiss citizen, she cannot vote but if she could, “I would vote ‘no’,” she says. “If my employer had to pay me more money, he wouldn’t be able to keep me on and I’d lose the job.”
Heck, I’m wondering if Ms. Almeida would be willing to come to Washington and educate Barack Obama. She obviously has enough smarts to figure out the indirect negative impact of government intervention, so her counsel would be very valuable in DC.
But if Ms. Almeida isn’t available, we have another foreigner who already has provided advice on the issue of minimum wages. Here’s Orphe Divougny, originally from Gabon, with a common-sense explanation of why it doesn’t make sense to hurt low-skilled workers.
http://youtu.be/zMMN3UIQmEk
By the way, this isn’t the first time the Swiss have demonstrated common sense when asked to vote of key economic policy issues.
In 2001, 85 percent of voters approved a plan to cap the growth of government spending.
In 2010, 59 percent of voters rejected an Obama-style class-warfare tax plan.
No wonder there are many reasons why Switzerland ranks above the United States.
