How Households Worldwide Spend Money

Citing data from Eurostat, a research arm of European Union, The Economist has an interesting chart showing how households in some of the world’s largest economies differ in their spending habits.

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As The Economist points out, the results say as much about the socioeconomic status of these countries as they do their culture and values:

Russians splash 8% of their money on booze and cigarettes—far more than most rich countries—while fun-loving Australians spend a tenth of theirs on recreation, and bookish South Koreans splurge more than most on education. Some of the differences are accounted for by economics. Richer places like America and Australia, where household expenditure is around $30,000 per person, will tend to spend a smaller share of their costs on food than Mexico and Russia, where average spending is around $6,000. And politics plays a part too. Predominantly private health care in America eats up over a fifth of each household’s budget, whereas the European Union, where public health care is common, only spends 4% on it. In Russia, government-subsidised housing and heating make living cheaper, and this means money is left over for the finer things in life.

For a partial breakdown of how individual E.U. member states fare, here is a similar chart (note the research was pre-Brexit):

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Again, the results speak to both socioeconomic disparities and cultural preferences:

In Malta, an island nation of 450,000 south of Italy, almost 20% of household expenditure goes on restaurants or hotels. In Lithuania that figure is 2.9%. Relative to much of the EU, Lithuania is a poor country with a per capita household expenditure of €7,500 ($8,500), half the EU average. Thus its people spend a larger share of their budget on food and clothing than any other EU country. Somewhat predictably the Dutch splurge most on recreation, while Greeks spend the least (a trait that pre-dates the financial crisis)—the money they save could perhaps be spent on more sensible endeavours like transport, or paying-off debt.

You can see the full dataset with all E.U. countries here.

What are your thoughts?

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Luxembourg – Future Space Power?

With a population of less than 600,000 (half of whom are foreign nationals), Luxembourg, which is nestled between France, Germany, and Belgium, is rarely center-stage internationally. Its biggest claim to fame is serving as an infamous tax haven second to Switzerland, and being one of the richest nations in the world (with a GDP per capita of around $100,000).

It is perhaps because of this great wealth and prosperity, as well as its relatively low profile (it maintains a policy of neutrality in most affairs), that this little country is aiming to become the “Silicon Valley of space mining”, to quote the headline of an article in Wired reporting on Luxembourg’s outsized ambitions in space. Continue reading

Still Life: Vase with Pink Roses

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Source: Wikimedia Commons

Still Life: Vase with Pink Roses by Vincent van Gogh. It was painted in 1890 while Van Gogh was preparing to leave the asylum in Saint-Rémy for the quiet town of Auvers-sur-Oise.

As his departure neared, he became increasingly optimistic about his future, as reflected in his choice of subject and colors: Van Gogh had a love for flowers of all kinds, and tended to paint them in his brighter moments. Vivid colors similarly reflected a more positive mood. Continue reading

Brief Reflections On Why So Many People Care About Brexit

It is fascinating to see how many people are taking an interest in Brexit and the European Union as a whole. Up until then, one rarely heard the media, let alone the average American, give much attention to the E.U. or its various issues and dynamics. Generally speaking, we Americans tend to be an insular lot, and our interest in the world is usually limited to conflicts, the actions of rivals or enemies, or the saga of U.S. citizens abroad.

I suspect much of what is driving our interest in the event is the fact that 1) it involves a culturally similar country for which most Americans have an affinity and familiarity with, and 2) that Brexit and the E.U. as a whole represent debates and issues of universal relevance: sovereignty, integration, xenophobia, nationalism, globalization, popular will vs. representative politic, and so on.

Continue reading