Why do some microstates, especially those in Europe, tend to be immensely wealthy? e.g. Monaco, Singapore, San Marino
In: 350
Being wealthy they managed to survive until the time their bigger neighbours decided military conquest was no longer hip, and that the place was better used to hide embezzled money.
Isnt this the same as asking “why did only super rich microstates survive the 19th and 20th century”
They aren’t that wealthy beyond being used as a tax haven. Statistics say they are wealthy but it’s mostly foreign money not spent in the country. A small portion is given to those in charge to keep the scheme going and to allow them to hide assets or even launder money within their country. We call those bribes, but that’s the major business of the upper crust of those countries. This is not even a secret, but the regular folks are no that wealthy. The money only goes down the line as far as it needs to to keep the status quo.
Simple answer..the RICH want places to live in where they feel safe and are emerged into a area of people like them.
No different than why are there wealthy cities in America. Why does a townhouse in the wealthy area cost 1.2 million when the same property in average area cost way less?
The wealthy and super wealthy want separation and that’s how they get it. Only people on there same level can afford to live in that area.
Been to Monaco and tbh I would be highly bored there unless I was into boating.
Got a coffee there it was $22 dollars. Wasn’t any different tasting than anywhere else.
Even the rock bands, Rolling Stones included, due to tax rates as high as 93%, moved their residency status to tax havens in S. France. The story was, Mick Jagger had taken LSD, bought the castle, and the next day he had to be informed, yes, you did just buy a castle!
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