I'm not sure it is human nature, but we always seem inclined to fret about how bad the economy is. Does anybody ever rejoice about how good the economy is?
Consider the case of Finland: It was one of the rapidly-growing Scandinavian bears until 2007 when Apple introduced the iPhone. Huh? What does the introduction of the iPhone have to do with the decline of Finland, you ask? Well, Nokia was 4% of the country's GDP, and that company got killed by Apple and Samsung. Over-reliance on any one company is begging for trouble, and they got it.
In addition, the country was overly-reliant on another industry -- paper. Their two paper companies were two of the largest companies in Europe. However, with the shift to digital media, the demand for paper has dropped worldwide. Countries dependent on paper have suffered, like Finland.
Also, Finland is geographically flush against Russia, who is sinking into recession. Ten percent of Finland's exports go to Russia and will be further hurt with the imposition of trade sanctions. The future is not bright.
Instead of falling, unemployment is at 9.8% and rising. Unemployment claims are up 15% over last year. Their GDP fell 8.3% during the global financial crisis (much worse than the U.S.) and their economy is still stalled -- seven long years later. I doubt there is a person in Finland who would not love to have an economy like the U.S.
The next time you're sitting around with people, fretting about the American economy, tell them to move to Finland. At least, they still make the world's greatest vodka!
Consider the case of Finland: It was one of the rapidly-growing Scandinavian bears until 2007 when Apple introduced the iPhone. Huh? What does the introduction of the iPhone have to do with the decline of Finland, you ask? Well, Nokia was 4% of the country's GDP, and that company got killed by Apple and Samsung. Over-reliance on any one company is begging for trouble, and they got it.
In addition, the country was overly-reliant on another industry -- paper. Their two paper companies were two of the largest companies in Europe. However, with the shift to digital media, the demand for paper has dropped worldwide. Countries dependent on paper have suffered, like Finland.
Also, Finland is geographically flush against Russia, who is sinking into recession. Ten percent of Finland's exports go to Russia and will be further hurt with the imposition of trade sanctions. The future is not bright.
Instead of falling, unemployment is at 9.8% and rising. Unemployment claims are up 15% over last year. Their GDP fell 8.3% during the global financial crisis (much worse than the U.S.) and their economy is still stalled -- seven long years later. I doubt there is a person in Finland who would not love to have an economy like the U.S.
The next time you're sitting around with people, fretting about the American economy, tell them to move to Finland. At least, they still make the world's greatest vodka!
