Politics Corner (Part 2)

So this curve scribbled on a napkin is now the undeniable peak of economics?

The projected total tax rate for 2025 is 42.3%, and for 2026 it is 42.4%. In 2010, the tax rate was 40.6%, and in 1980, it was about 35%.

https://www.veronmaksajat.fi/tutkimus-ja-tilastot/suomen-verot-ja-menot/veroaste/#2f0f8a25

I don’t know why you brought up the tax rate; I don’t believe I said anything about it. I can say, however, that I think the VAT (Value Added Tax) increase was a really stupid move, but not as stupid as the post-increase bewilderment over people’s lack of willingness to consume.

Targeting cuts is often a value choice; by cutting earnings-related benefits or social security, you cut consumption and economic activity with 100% certainty. Increasing VAT works the same way.

Lowering high taxation doesn’t work that straightforwardly, simply because a high-income person is not under constant economic pressure. Not everything goes toward living expenses; the money might just sit in an account or support the economy of some other country. And besides, in Finland, parties tend to push the agendas of interest groups without caring much about the state finances—it would, however, be desirable to speak directly about values instead of claiming them as facts.

My point wasn’t to praise the SDP’s budget, but that the current government’s budget, after the blundering, is the SDP’s budget. After all the hype, it’s the same crap; the money is just partly in different pockets. It didn’t result in increased employment—but unemployment instead. Incentive traps have been worsened and, for the most part, the profitability of working has been weakened.

Will those dynamic effects start to show during this government term—or even this decade?

For my part, I’ll say that I much prefer a government that doesn’t botch balancing the state finances over a bunch of bunglers riding from one scandal to another. Regardless of whether my values align with the government’s or not. This seems to be a minority opinion in today’s world.

The failure of this government was already guaranteed by the fact that nothing was learned from the first time getting into bed with the Finns Party (persut); instead, they had to go and bang their heads against the same wall again.

14 Likes

This is a small thing in itself, but there are always people claiming that inequality no longer exists and that work towards it can be stopped. However, read this Hesari story and think about whether this would ever happen in male-dominated workplaces?

In the instructions sent by the city, employees are required to have, among other things, anti-slip guards or studded shoes. The reason for this is slipping, which is the most common workplace accident in early childhood education.

According to the trade union JHL, the instructions have confused employees. The guidance has been considered unclear. There is also resentment that the city hasn’t announced it will contribute to the acquisition costs of the equipment.

3 Likes

This is quite an interpretation. They are exactly a specific type of shoe when certain features are required. Employees cannot decide for themselves what kind to buy, but instead have to buy their own work shoes in the first place.

It would definitely not be an employee benefit. An employer can require the use of certain types of shoes during working hours, but they damn well have to pay for them then. In practice, this is no different from safety shoes in factory work.

"No additional money is coming from the employer for the purchase of new shoes. According to Kemppi, in the municipal sector collective agreement, the employer compensates for new equipment in a situation where there is an obligation to acquire specific equipment.

Now, according to Kemppi, employees can decide for themselves the price and type of shoes they purchase.

”If the city paid for the shoes, it would be an employee benefit,” Kemppi says. The benefit would also have a tax dimension."

–——
I’ll also throw in the recent Wolt cases. Hopefully, as many as possible will follow Annala’s principled decision. “Entrepreneurs” are using substitutes, meaning they are renting out their own Wolt accounts. Unsurprisingly, Wolt is washing its hands of it. All of this is made possible by that incomprehensible interpretation of entrepreneurship, which is fortunately coming to an end. I guess this is hardly any different from me getting a “substitute” for my permanent job, taking, say, a 30% cut, and only grinding out the overtime portions myself every now and then, since I’d have the energy for those with 0% working hours. :slight_smile:

8 Likes

That shoe thing is just so incomprehensible that I don’t know what to say. In my eyes, Helsinki has always seemed like just about the worst employer, but I guess there are always new lows to be found.

Detachable studs for shoes only cost a few euros, meaning a few dozen euros per daycare center. If someone then wants to buy Icebugs themselves…

Was it hard? No. Would the taxman be interested? No.

8 Likes

I just watched this MOT episode on Areena, and the link above is the related story on Yle’s website.

I’ve been thinking about changing jobs for over a year now and have been submitting applications through Työmarkkinatori (Job Market Finland) as well. I’ve often used search criteria that only show jobs posted within the last week. Apparently, they don’t have a system like the one on Tori.fi, for example, where you can’t just keep bumping up ads to maximize visibility. The program shed some light on why these are being bumped. Every single job advertisement is recorded in statistics as an open vacancy. Thus, if an ad is republished every Monday over 12 weeks, instead of one job that is actually (maybe actually, more on that later) open, 12 open jobs are recorded in the statistics. In Yle’s story, they found a job that was recorded as 46 open positions instead of one.

Furthermore, statistics are being “beautified” by cases where multiple staffing agencies are looking for a worker for the same role. Those are also recorded as multiple open positions instead of one. Staffing agencies also look for people with ghost ads—meaning the job doesn’t actually exist in reality, but something might be found in the future. Yet, all of these are counted as open jobs.

From personal experience, I can say that one factory job I’ve applied for reappears in job search services every now and then. I’ve received an email three times saying the application didn’t proceed this time. A friend of mine does the same job, and it’s a basic role that can be learned through standard orientation. Of course, I understand that I might not necessarily be the one chosen. However, I’ve asked about it, and apparently, a suitable candidate hasn’t been found among the applicants yet. Especially the staffing agency still enthusiastically encourages people to submit applications, as if to raise hopes.

Good grief, there’s a 6-month probationary period for a permanent position, and hardly any skill requirements. The position has been open sometimes under the company’s own name and sometimes through a staffing agency. I don’t understand what the reason could be for not taking anyone to even try a simple task; instead, the position appears open every month or two with the exact same text. It raises the question of whether they are actually looking for a worker at all, or if they are just mapping out potential workers in case they are needed someday. Surely over ten open jobs have been recorded from that too, but according to the company’s own words, not a single employee has been hired. It seems so strange that I’m certainly not going there anymore, even if they were to contact me for some reason.

Well, after the MOT story, my own communication with staffing agencies will become more cautious, and I won’t apply for positions unless the client company is stated directly and the whole thing seems honest otherwise. I’ve been thinking that many of those ads don’t inspire any confidence, but I’ve applied mainly for lack of better options.

All these cuts to various benefits seem incomprehensible when even those few open jobs are recorded completely haphazardly, and the number of unemployed people is exploding despite “trick employment” measures and ghost jobs.

Then, according to the most extreme proposals, one should have to work for their benefits. Benefits are specifically there so people can get by when there is no work. Instead, when unemployed, one’s “job” should primarily be job hunting. For heaven’s sake, we don’t need to start developing an even larger free labor market here. The elderly need care and parks need cleaning, but those are real jobs for which a salary according to the collective agreement should be paid.

Picked from the story:

"We searched the data for more of these frequently occurring advertisements. How many had been republished with the same wording less than a month after the previous search had ended?

From ads renewed this frequently, 84,000 ”extra” jobs were found, which had been recorded as new jobs even though they were related to a previously announced search.

We also tracked down jobs distorting employment service statistics in another way.

Using this calculation method as well, almost the same amount—78,000 extra jobs—ended up in the employment service statistics. That corresponds to thousands of jobs every month.

In reality, the number is even larger, as only 30 percent of companies had entered ”their own reference data” in the ads. By combining reference data, we were thus able to find only a portion of the searches related to the same job.

”Useless” positions also end up in employment service statistics when the same jobs are sought through several parallel advertisements. For example, in the autumn in Tampere, four staffing agencies were filling the same chef position at the same time."

15 Likes

I’ll post this here since Yle is a tax-funded institution. A textbook example of clickbait headlines. I suppose the intention here is to give the impression that ‘businessman’ is a synonym for ‘criminal’?

Or maybe it was simply thought that it’s good for people to know that this specific entrepreneur has been evading Interpol and has legal issues in Singapore. There is no conspiracy or special motive behind it all.

6 Likes

I don’t see any conspiracy here; rather, I would like tax-funded news media not to create these kinds of clickbait headlines that evoke false impressions. You also fell for the wrong impression yourself when you state that “the entrepreneur was evading Interpol.” It is worth reading the article instead of drawing conclusions based solely on the clickbait headline. That is why it is so important that the headline is not written to be misleading.

The article reveals that Interpol received a notice from Singapore. Zilliacus was detained in Germany based on it, but the prosecutor stated that the extradition request contained no evidence.

I greatly value Yleisradio and its mission. That’s why I don’t like it ruining its own credibility with clickbait headlines like this.

I wonder if it’s just about marketing the company. To show that things are going great, since they have job openings.

And here is the link:

Even though that more obscure matter was highlighted, in my opinion, it is rather a prime example of a headline that is not clickbait. It even mentions the names of the property sold and the buyer.

A clickbait headline could have been: “Hotel in the East sold, buyer is the man whose idea led Jokerit to the KHL.”

The guy wanted by Interpol is fortunately just on a mission for the fatherland:

“– I don’t see this as a real estate investment, but specifically as preserving Finnish history. Now that I am in Finland for a longer period, I want to do something for the benefit of the fatherland, Zilliacus states.”

2 Likes

Funny, Taavetti also thinks that is clearly a clickbait headline, and Taavetti also feels that because of such attention-seeking clickbait headlines, more and more news stories go unread.

The old saying “leads one to believe but fails to deliver” fits well here. At worst, the impression given by the headline hints at something completely different from the actual content of the news story. Sometimes you even have to scrutinize the text really closely to find where the matter mentioned in the headline is located.

The fact that someone was previously wanted by Interpol evokes many kinds of connotations. How were these handled in the news story? Taavetti asks because he didn’t read the story and because Taavetti suspects that the handling of those connotations played a minor role and that any analysis of the significance of the relationship between those connotations and the target of the purchase was nonexistent.

1 Like

A serious assault took place at the Kaleva Prisma in Tampere at the end of January. The police have released a photo of the suspects and are now requesting help with identification.

The case is serious, and I naturally hope that the police catch the perpetrators quickly. At the same time, I want to raise a concern that has surfaced increasingly often lately. For many residents of Tampere, the Kaleva area has become more restless than before, especially in the evenings.

It is not just about this single incident per se, but about a general decline in the sense of security in everyday life. The sole reason for this is the policy pursued by several governments.

https://poliisi.fi/-/poliisi-pyytaa-tunnistusapua-tampereen-kalevan-prisman-epaillyssa-torkeassa-pahoinpitelyssa

14 Likes

This is just sick, this hounding of the unemployed. On what earthly grounds can an income of twenty cents a month affect benefits more than the twenty cents itself? Are people supposed to just lie at home doing nothing and having no hobbies, just so they don’t accidentally do any “work.” At the same time, people are being taught to be dishonest with Kela (the Social Insurance Institution). Whatever you do, don’t tell them if you’ve returned a found deposit can to the store! :man_facepalming:

12 Likes

I don’t know more about the person’s background, but here are a couple of quotes from the article:

“Kela deemed that the music sharing I started last spring is acting as a light entrepreneur, as a result of which I am no longer entitled to unemployment benefits”

“Kela stated that unprofitable business activity is not supported with Kela’s funds, and therefore my social assistance may be cut in the future.”

In my opinion, there is nothing particularly revolutionary about those policies. When you produce commercial products, it’s pretty much the same whether you offer music on Spotify or wool socks at a market square. Success is not a criterion for entrepreneurship.

Whether the system should be more flexible is a completely different matter.

After an unemployment period of over five years, however, Niko should focus primarily on something other than financially unproductive content creation on YouTube, Spotify, and TikTok.

Ps. Oh, the politics thread is open over the weekend. @Sijoittaja-alokas challenge: close the thread only after the first row or inappropriate comment. Humanity should be given a chance to mend its ways :slight_smile:

18 Likes

The lives of those receiving social assistance are also complicated by the fact that any sums received into their account can be interpreted as income. Niko Huuskonen experienced the consequences after helping a friend who had been evicted with their move.

– He doesn’t have a driver’s license, and I received money from him to rent a van for several days, he says.

I’m taking one thing completely out of context, and I’m not taking a stand on this friend’s situation in any way or even why he might have been evicted - instead, I’m going off on a complete tangent.

What do others think about whether it is quite short-sighted and perhaps a bit foolish to leave driving school and the driving test uncompleted? Personally, I feel that even those low-threshold jobs are the kind where at least a Category B license is required.

There are, of course, jobs that do not require a driver’s license, and driving is not required at all to perform the work itself - but you might still be a heavy burden within the work community when you always have to be driven around or waited for… You can’t go, come, or do anything independently if the scale of distances between tasks grows - unless you travel from place to place in an S-class Mercedes, in the “minister seat” (the back seat).

Nowadays, remote work opportunities exist and as mentioned, it is indeed POSSIBLE to do one’s job well even without a driver’s license. But, I have to set up a poll:

Is a driver’s license necessary at your workplace?
  • No.
  • Yes.
0 äänestäjää

It would also be interesting to know the reasons why people didn’t get their driver’s license when they were younger. Just out of curiosity.

1 Like

Yep. But it’s strange that such an unprofitable gig is unilaterally considered entrepreneurship. I have no clue about entrepreneurship, but you’d think there would be some obligations or concrete evidence to establish the matter. I wonder if it’s possible to somehow block money transfers to oneself on those platforms? Does receiving OP bonuses make me an entrepreneur, since they can be withdrawn as cash? And it’s a strange curiosity that an unemployed person wouldn’t be allowed to sell things at a flea market, for example. You’d become an entrepreneur then.

Driving might be scary for some. Some don’t have a relative or friend who could teach them with an instruction permit, and driving school is too expensive. For some, it’s an ecological principle; they think they don’t want a car and prefer to use public transport.

6 Likes

Well, here’s one reporting in. Buying a car hasn’t even remotely crossed my mind, let alone that I would need one for anything in a growing city. And what would I do with a driver’s license, even though my family once promised to pay for it when I turned eighteen. If I ever feel the need to change my thinking at age 70, I think it’s smarter to drive as someone who completed driving school recently rather than half a century ago.

OP bonuses are capital income, which of course affects the amount of social assistance (toimeentulotuki) when withdrawn as cash, but it doesn’t make anyone an entrepreneur. Flea market sales do not affect your unemployment status when you sell normal household items. However, if you buy goods with a profit motive for flea market sales, the situation becomes completely different. And that’s how it should be. Even though the monitoring of taxes etc. is probably quite negligible, despite flea markets being full of “Temu tables” where Chinese junk is sold in unopened packages instead of items no longer used at home.

5 Likes

To Kela and the TE-office, entrepreneurship is still a magic word. The applicant themselves must realize to strictly deny being an entrepreneur when asked. If the Kela clerk gets even the slightest whiff that they can slap someone with entrepreneur status, they will gladly do so, and all benefits are cut immediately. I guess the system doesn’t differentiate between an entrepreneur and a light entrepreneur.

10 Likes

As a general comment on this Kela and social assistance topic: I hope Finland introduces a universal basic income to replace the current convoluted web of social benefits. The basic income experiment a few years ago was a farce in the sense that it did not provide a proper research design for evaluation. Granted, determining the amount of basic income and other details would be extremely challenging, but I hope a new experiment is conducted in Finland where recipients are randomized and the recipient’s position could even potentially worsen compared to the level provided by the current system (the amount of support).

Finland’s social security system consumes a massive amount of human labor hours, and it focuses on monitoring completely irrelevant things. Perhaps AI could be another solution—letting it make the decisions while humans perform random audits whenever a warning indicator is triggered.

9 Likes

How would that potential basic income take into account things like the number of children, place of residence, type of housing, etc.?

This current complex structure isn’t optimal, but in my opinion, social security must account for different life situations. And if they were also taken into account in a basic income model, what essential thing would change?

1 Like