Economics

Switzerland weak reaction to COVID-19 is criticised all over the world

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Photo from “Tages Anzeiger”

Switzerland is often seen as a paradise, where everything is supposed to be working well. However, in this period, the situation is dramatic or even desperate in some cases, even if here they are quite good in “hiding the dust or uncomfortable matters under the carpet…”.

In particular, the government and the cantons made and are still guiltily making a lot of mistakes, getting a lot of critics from all over the world. Just to try to save economics (Even if a lot of people have been already “silently” and quickly fired from many Companies), health is considered as a second priority, with preventive measures against COVID-19 which are too weak and, considering the infection numbers, clearly ineffective.

The “Tages Anzeiger”, the daily newspaper from Zurich and one of the most important in Switzerland, analysed what foreign press thinks of the Swiss way to fight the COVID-19 emergency. Here the most significant quotes.

“Switzerland is still thinking of being a particular case…” (Foreign Policy, USA)

“It has been returned too quickly to the politics of the small cantons…” (Frankfurter Allgemeine Zeitung, DE, regarding the continuous passing the buck regarding the responsibilities to define what to do between the central federal State and the 26 cantons)

“Switzerland is the second Sweden…” (Welt, DE)

“Why the government continues to be reluctant to take severe decisions?…” (Süddeutsche Zeitung, DE)

“A risky strategy…” (Financial Time, UK).

“A perfect example of what Germany should not do…” (Karl Lauterbach, German socialist politician and professor of health economics and epidemiology at the University of Cologne)

“…more testimonials tell about a Swiss weak approach, for a long time, with superficial preventive measures in the Companies, protocols which were not complied with, basically about a situation which created COVID carriers” (Corriere della Sera IT, regarding the dramatic increase of infections and quarantines in a small city, Arcisate, near the border with Switzerland).

It is crazy to see the passivity and lack of vision of the Swiss government which, in front of a continuous increase of infections, hospitalisations and deaths, almost every day holds monotonous and boring press conferences, only to acknowledge the situation with no gut and no flexibility to change the route inside this terribly disruptive storm!

Opening times

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The main three and “historical” supermarkets of Switzerland are for sure Coop, Migros and Denner. Nowadays Aldi and Lidl are expanding quickly and fighting with the three “old” ones!
In the Confederation there is a curious specialty. Shops (of course led by supermarkets) open on Saturdays slightly earlier than during the week and eventually close also earlier. If this is logical, considering the need for sleep of a normal working person… I leave to your judgement.

Now, during one of my expeditions to the Swiss expensive shopping world, I noticed the strange sign of the photo. It took me many minutes to read it, re-read it… and accept its weirdness! Is it really so?
I was surprised and even amazed by the emphasis used to underline the fact that that specific Denner has an opening time on Saturday which is… exactly the same as every other day of the week!
Thanks to remind me this! Otherwise I might have risked to confuse the weekend with a normal weekly day!

Toblerone… better buy it in Singapore!

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Toblerone!

The famous bar of Swiss chocolate, resembling its mountains with its unique triangular shape, is an institution in Switzerland.

It is for sure one of the most famous brands of the Confederation!

Very good! Then I should be able to buy it at the best possible conditions in a Swiss supermarket or specialised shop.

Wrong! Coop, one of the three most common Swiss supermarkets, sells a 100 g Toblerone bar for 2.20 CHF.

While wandering around in Vivo City, one of the most futuristic shopping malls in Singapore (Singapore! One of the most expensive countries in the world… and not just around the corner of the Alps!), I found a great deal!

Basically, in the nice Southeast-Asian country, 100 g of Toblerone were offered at a price of 2 Singaporean dollars, which corresponds to 1.45 CHF! One third cheaper than in the Chocolate Confederation!!

What is it? Is Toblerone a fading commodity nowadays, or do their producers prefer that it is bought far away from the Alps being confused as a souvenir and a specialty from another country?

Basics of economy of scale

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330px-Economies_of_scale
Picture taken from http://en.wikipedia.org/wiki/Economies_of_scale.

Don’t worry! I know: the title can sound quite professional and deep, but I am neither able nor willing to give you a lesson of economics here.

Just to present you another amazing characteristics of Switzerland! Deeply eradicated in the Confederation culture.

You go to the supermarket: if you buy a package of 6 mineral water bottles, its price is just the price of one bottle times six (unless there is some other special, but rare, discount).
You go to the station: if you buy 6 normal commuter train tickets, the price is just the price of one commuter ticket times six.
And so on.

Normally, as the economy of scale teaches us, if you buy a certain quantity of a defined product, you can get that product at a cheaper price.
This is the convenience of buying bigger stuff packages or carnet train tickets!
But in Switzerland normally (OK, there are some rare “exceptions”…) not.

Why this? Again I don’t know. Another mistery in the land of the Alps, chocolate, watches and banks.
But I try to make some thoughts on that.
The contrary of economy of scale is diseconomy of scale, of course, causing production of goods and services at higher costs per unit.

But what is actually the problem of not decreasing prices if dealing with big amounts of products?
They are basic services/goods…so people will go on buying them in any case! This is the thought behind…maybe.