What are your housing expenses?

[Verbose]

Negative interest rate?? Holy crap.. Why would they do that? Is the economy in such a dire shape? (I'm no economist, but generally over here when the economy goes to crap, the interest rates drop. I've never seen them go into the negative though.)

It's -0,25% as of late. I.e. banks have to pay the National Bank interest to keep some of their money with it. Technically we as bank customers might be expected to pay the bank interest for keeping our money in a savings accont (they're not THAT big bastards though, the savings accounts just come with a zero interest rate these days).

The reason for the negative interest rate is that it's set to stave of deflation. Sweden is at zero inflation as it is. Without the negative interest, deflation would start. And deflation is way worse than inflation (a bit of that is even wanted — never mind what the Germans might tell anyone about the horrors of inflation).

The reason for the Swedish tendency towards deflation right now isn't super-clear — for simplicity's sake it's to do with how BADLY the Eurozone is performing economically right now. Essentially the Swedish currency is internationally a small one. Even a modest uptick in international demand for it can get a big effect. That means a more expensive Swedish "krona", which guts Swedish export competitiveness (and Sweden is MASSIVELY export dependent), so a negative interest rate serves to push down demand for the "krona", to keep it low, while people look for someplace to put their money in uncertain times.

Otherwise the Swedish national accounts are in pretty good nick: 2,1% GDP growth in 2014, govt debt below 40% of GDP, a modest 1,3% budget deficit, unemployment at 7,8% not low, but for EU standards not high. GDP/capita at market prices is a 44 000 USD. So no, the economy is not in any particular trouble. The reverse more like. (It's a bit like with the Swiss, the dilemma is that if a small country does well when the Big Boys look a bit droopy, weird spill-over effects might occur. Though they're even more pronounced with the Swiss.)

The only bit that Sweden regularly gets rapped over the knuckles over is the extent to which household mortgages are increasing — but that's actually demand-driven, since Sweden grows with about 100 000 people/year, and there's virtually no new housing being built, which means increased demand, and jacked up prices. Exactly why the Swedish real-estate production is so low is again too complex to broach easily — there's a ton of lock-in effects, very exacting building standards, and a tendency when building to build exclusively to a very financially strong segment of the market, not the mass of ordinary income people in need of a place to live.

Of course negative interest rates and historically low mortgage costs just adds fuel to the real-estate fire as things stand. It's why I can pay a mere 300 USD/month to service my debt. Four times that amount tends to be quoted as the more "normal" rate everyone should eventually be preparing for (so 1200). (Though this negative interest rate is expected to last until late 2016 at least.)

 

[Paul in Saudi]

About US$1,250/month for room and board. Of course I live in half a shipping container.

 

[Terxpahseyton]

Negative interest rate?? Holy crap.. Why would they do that? Is the economy in such a dire shape? (I'm no economist, but generally over here when the economy goes to crap, the interest rates drop. I've never seen them go into the negative though.)

In general economic growth goes hand in hand with high inflation rates and economic decline with low inflation rates. And I believe low interest rates combat both (low inflation rates can also be a problem)
However, sometimes inflation crumbles even if the economy is doing okay. As is the case in Germany at the moment
So perhaps Sweden does so because the inflation rate is very low.

edit: Oh I see Verbose gave just a much more extensive response

 

[Verbose]

In general economic growth goes hand in hand with high inflation rates and economic decline with low inflation rates. And I believe low interest rates combat both (low inflation rates can also be a problem)
However, sometimes inflation crumbles even if the economy is doing okay. As is the case in Germany at the moment
So perhaps Sweden does so because the inflation rate is very low.

It's worse. Without the negative interest rate, Sweden goes in deflation, i.e. if you just wait a bit, your money becomes worth more. Which is a known killer of consumption. And otoh, if in deflation, your debts grow as well. And Swedish households are pretty heavily leveraged into mortgages, which is a worry, should deflation really kick in. The risk is that it could have dramatic effects.

Otoh, the Swedish National Bank spent several years on a course of higher interest rates at a time when the economy was contracting, meaning a couple of hundred thousand more people out of work, more failed businesses, eventually spending a year or so simply accepting a bit of deflation. It got a LOT of flak for that. It's just recently shifted to this new line of doing whatever it takes to keep Sweden out of deflation, if possible.

It's a sign things are off kelter in the international economy, seems safe to say. Just not necessarily more so in Sweden than elsewhere.

 

[Farm Boy]

And the fast food joints are staffed by people with a lack of understanding of manners.

Yessa! Right away sah! Can I fill up your free refill for you with a smile and no expectation of tip sah?

$800 in rent for a house of indeterminate square footage(I'd have to measure and I just don't care) and a double-lot yard.

 

[warpus]

Hey now, just because I expect customer service employees to be courteous doesn't mean I expect them to be goddamn slaves. Ya freak.

 

[thecrazyscot]

Yessa! Right away sah! Can I fill up your free refill for you with a smile and no expectation of tip sah?

That...I...what?

 

[Farm Boy]

Hey now, just because I expect customer service employees to be courteous doesn't mean I expect them to be goddamn slaves. Ya freak.

Smile for me. Smile for me now dammit! You are graced with my presence!

 

[Borachio]

If someone who serves me is feeling glum, I'd rather they just look glum (and I can ask them why), than look artificially happy.

I can tell the difference between someone who's enjoying themselves and someone who is just pretending to. (I think.)

 

[thecrazyscot]

I don't think warpus was saying that they need to be "fake", but that when you are in a customer-facing job, you have a responsibility to treat your customers with respect and common courtesy.

(as I can't speak for you warpus feel free to correct me)

I've had bad days when I worked in customer service, but it was still my job to make them feel valued and respected. That doesn't mean you have to plaster a smile all over your face all the time.

 

[Farm Boy]

Oh, true, but personally I think so long as your food is prepared properly, timely, and hot - that's about the best you have any right to expect from minimum wage fast food employees working on interstate highway stops. Those customers are not infrequently terrible and they're not purchasing "chipperness" with tip, purchase price of the food, or loyalty through repetition. They're basically one of the worst groups of people to be stuck serving for as little wages and respect as is legal.

 

[warpus]

Yeah, I expect a reasonable and respectable level of courtesy. I suppose I might have awfully high Canadian standards that include things like "thank you" and "you're welcome" being said.

 

[Farm Boy]

Yeah, I expect a reasonable and respectable level of courtesy. I suppose I might have awfully high Canadian standards that include things like "thank you" and "you're welcome" being said.

If I remember right this mostly resolved itself once you got off the interstate where employees get treated like crap. Where people do purchase chipperness with either tip, purchase price of food and environment, or loyalty through repeat business.

I say "thank you" to minimum wage employees who serve me food on the interstate. They need it more than I do.

 

[Terxpahseyton]

I've had bad days when I worked in customer service, but it was still my job to make them feel valued and respected. That doesn't mean you have to plaster a smile all over your face all the time.

I agree, but that also does not mean that you have to be upset with someone who fails to do so (unless he or she is highly disrespectful instead of just not being very friendly, but even then the greater thing would be to be forgiving and understanding). I find it perverse to think that you can buy someones dignity for so little money like that. I appreciate it if customer service is friendly to me, but I think that it is a rather disgusting concept to think that one is entitled to it. Very inhuman.

 

[thecrazyscot]

I would say that whenever you are in a customer-facing position, part of doing the job itself is simple common courtesy. I don't think this is an unreasonable expectation regardless of where the fast-food place is or who the employees work for.

 

[thecrazyscot]

I agree, but that also does not mean that you have to be upset with someone who fails to do so (unless he or she is highly disrespectful instead of just not being very friendly, but even then the greater thing would be to be forgiving and understanding). I find it perverse to think that you can buy someones dignity for so little money like that.

Certainly not - having worked in a customer service environment I strive to not be a difficult customer

That being said, no one's dignity is being bought. As my above post said, common courtesy is simply what is expected when you work in a customer-facing environment.

And as a customer, again, common courtesy should be expected from you.

I dunno, maybe it just comes down to how we're raised. I was raised to act with common courtesy and respect in all situations.

 

[Terxpahseyton]

I agree that it is a reasonable expectation. I agree it is part of the job. What I am basically saying, however, is to not view people as products you purchased. And as people rather than products, they deserve to be cut some slack. If you view them as products rather than people, you deny them part of their dignity.

 

[Farm Boy]

I would say that whenever you are in a customer-facing position, part of doing the job itself is simple common courtesy. I don't think this is an unreasonable expectation regardless of where the fast-food place is or who the employees work for.

I'll agree with that. But I won't include smiles and the trappings of deference.

 

[warpus]

I agree, but that also does not mean that you have to be upset with someone who fails to do so

I wouldn't get upset, I just got confused when it happened. You.. just don't do that. Simple manners, yo.

Anyway, this is getting off topic and I apologize for bringing this up in the first place. I didn't think anyone would jump on it.

 

[thecrazyscot]

I agree that it is a reasonable expectation. I agree it is part of the job. What I am basically saying, however, is to not view people as products you purchased. And as people rather than products, they deserve to be cut some slack. If you view them as products rather than people, you deny them part of their dignity.

I'll agree with that. But I won't include smiles and the trappings of deference.

I think we're all essentially in agreement here, with some perhaps minor disagreements semantically-wise.

"Treat others as you would like to be treated" should be expected no matter what side of the counter you're on. Customers who violate that rule are just as much in the wrong as those who provide service.

"Giving the benefit of the doubt" is also a good rule to live by, again, no matter what side of the counter you're on

Bringing it back on topic

I have relatives in Alaska - everything is so much more expensive up there. I'd never thought about it, but I guess it's obvious actually considering how most everything has to be imported.