Switzerland – billionaires and the social progress index

In 2022 it was estimated that Switzerland had an estimated 110 billionaires with a combined wealth of $338 billion – more than Saudi Arabia, Singapore and United Arab Emirates. The average wealth of Swiss citizens is approximately $700,000 but what makes it such an attractive place for the wealthy to live and how does this impact inequality and the opportunity for those who are on relatively lower incomes?

The video below attempts to answer these questions and mentions how Switzerland ranks highly on the social progress index. This index measures the extent to which countries provide for the social and environmental needs of their citizens. Fifty-four indicators in the areas of basic human needs, foundations of well-being, and opportunity to progress show the relative performance of nations. For a country of extreme wealth it ranks 4th behind the nordic countries of Norway, Finland and Denmark.

In Switzerland before tax, the richest 10% earn approximately one-third of total national income, a proportion which has not changed since the early 1930s. After government redistribution, this share goes down a few points to 30% – see graph below.

The strength of the Swiss economy is partly responsible for limiting income disparities – a low unemployment rate (2.5% in January 2024) and a flexible labour market. Also a dual system of education and training that allows people who don’t go to the university the ability to earn higher incomes.

Sources:

• CNBC

• Wikipedia – Social Progress Index

• Economic divide: how equal is Switzerland’s wealth distribution?