Swiss KO Minimum Wage

Why does the Swiss model work so well? Because Switzerland is a working, decentralized, federal republic based government with a weak executive branch and ultimate power in the cantons (states). As such,when a ridiculous minimum wage bill goes up for a vote, an astounding 76% of Swiss voters vote no thanks. And when a plan is put forth to buy a load of expensive Swedish fighters, the Swiss again vote no in favor of fiscal discipline. Americans can use the Swiss model as a template in the dismantling of our corrupt and burdensome corporate-statist straight jacket form of big government. Ralph Nader’s Unstoppable succinctly outlines a battle plan for immediate action. The AFP reports here.

A proposal to introduce a minimum wage so high it could pass for mid-management pay elsewhere, was rejected by 76,3 percent of Swiss voters.

A series of referendums in Switzerland also saw voters nix a multi-billion-dollar deal to buy fighter jets from Sweden and massively support a lifelong ban on convicted paedophiles working with children.

The massive rejection of the “Decent Salary” initiative was widely seen as a slap in the face to its union backers, who insist at least 22 Swiss francs ($25, 18 euros) an hour, or 4,000 francs ($4,515, 3,280 euros) a month, is needed to get by in Switzerland.

If it had passed, Switzerland would have gone from having no national minimum wage to boasting the world’s highest, far above the $7.25 in the United States and 9.43 euros in France.

– Threat to businesses –

But the initiative flopped as voters heeded warnings from government and other opponents that it would deal a death blow to many businesses and would weaken Switzerland’s healthy economy.

Swiss Economy Minister Johann Schneider-Ammann hailed the result, insisting the country had dodged a bullet.

Introducing the minimum wage, he told reporters, would have led to “layoffs” and made it “more difficult for people with few qualifications to find a job.”

Farmers, small business owners and employer organisations also welcomed the results.