You’d be surprised how rich a society can be with a high IQ demographics, low taxes (I.e. barriers), and free enterprise. In Europe, landlocked no-oil Switzerland is a good example of this.
The average IQ in the U.S.A and the E.U is roughly the same[1][2]. The tax rate is also very similar [3]. Salaries can also vary a lot. If a tech worker in SF can have a salary that dwarf most of its EU colleague, a minimum-wage worker is often going to have a better salary and benefit in the E.U (although it vary a lot per-country basis and the same can be said with states in the U.S.A).
If I didn’t include the intelligence caveat, one could point out lower tax countries with less opportunity, such as how Somalia is the anarcho capitalists dream. Even if the US and Switzerland are more economically free than many other more socialist western nations, intelligent demographics is makes or breaks that effect.
The average American also makes more than the average European - not only in SF. In more economically free European countries this is not the case though, but these are few. Except for the highly regulated (thus inefficient) American Heath insurance market, having a regular job is a better deal there.
The things you mentioned aren't what make Switzerland a rich society.
In my experience living here, it is the strong social security net (70% of your previous wage if unemployed), high minimum wage (up to 25$/hr in some areas), and general workers rights/protections.
None of those are unique to Switzerland but it’s a lot richer than any of its neighbors. The policies you describe don’t cause wealth. They’re things you can afford once you’re wealthy. If Kerala adopted those policies they’d either be widely flouted outside the formal sector (at best) or destroy the economy.
"some areas" is doing a lot of heavy lifting in this sentence of yours. First of all, there is no Federal minimum wage, it is Cantonal. Second of all, the minimum wage of 20CHF only exists in 2 Cantons: Jura and Neuchatel. Third of all, once you PPP adjust that number, it's equivalent to about $10 USD/hour.
Switzerland has the unique advantage of having staid neutral since somewhat 500 years which means their wealth never got plundered or destroyed in one of the way too many wars that have plagued Europe since then. Their neutrality status, combined with a long tradition of utmost banking secrecy, also made Switzerland a perfect "safe harbor" for lots of foreign dark money of all kinds - from kingdoms, warlords and other dictatorships to seemingly "non-profit" corrupt entities such as FIFA, not to mention ordinary European rich wanting to hide their money from the taxman.
tl;dr: Switzerland got rich because of staying neutral and not asking questions about where incoming money originates from, not because of "free enterprise".
By that reason my nation the Swedes should be as rich as the Swiss, or more, since we have minerals and export a lot of wood. Sweden too has been neutral for hundreds of years. The demographics (of native Swedes) are similar in intelligence, a highly inheritable trait, as the Swiss, so that is not the differentiation.
But instead Sweden chose the way of high tax on high income, high capital gains tax (which is zero in Switzerland), and a big “public sector” in order to make a large section of the people dependent on the state. The effect is fewer rich people who can invest in new companies, and more investment done via the state, which is inherently less efficient
Swiss neutrality post dates Napoleon’s fall. It’s barely 200 years old, not 500. And Switzerland would be rich without banking. It wasn’t (much) richer than its neighbors before WW2. Not getting bombed into rubble and banking secrecy gold are great but S Korea, Taiwan, Singapore and Hong Kong show there’s more than one way for a well governed country to get rich, starting from poverty.
I compare CH to Norway - 0.19% wealth tax in Zürich vs 1.8% in Norway, 0% capital gains tax in CH vs 20% in NO, 8% VAT in Zürich vs 25% in NO, zero natural resources in CH, massive amounts of oil in NO. After that, there is a manyfold greater chance for someone in CH to make a better wage and to save up a million $. Economic freedom is lifting the tide on which all boats sail.
Valid point, but Spain is also neutral but isn't exactly bursting at the seams with pots of gold.
They used to be the wealthiest out there, but I guess they took a few bad turns.
Just saying staying neutral doesn't automatically make a country (stay) wealthy.
Singapore also does not have a capital gains tax and much more than other countries respects the natural right to ownership. If you with force go against the natural right to life, liberty, and property, you are punished with inefficiency.
[1] https://www.worlddata.info/iq-by-country.php
[2] https://worldpopulationreview.com/country-rankings/average-i...
[3] https://stats.oecd.org/Index.aspx?DataSetCode=CTS_ETR