The economy has been bad for a long time and the Danish information technology business has been hit not only by the decline in the global economy but also by backstabbing trade unions trying to take over each other member by agreeing to dumping salaries.
A firm like CSC used cheap uneducated labor from India and a trade union named HK making the work area just as uninteresting as a MCjob career. Why bother spending years on higher education when the first paycheck the new graduates receive is going to be the same amount if they had dropped out of school and joined the workline at the first Burgerjoint?
It was clear that students should seek their future in other businesses because they would not be able to feed their families if they entered this line of business. And the entire CSC strike was bad for Denmark because the students saw the sign on the wall and did chose not to enter this line of business.
Our government has been trying to boost the economy which is difficult without tax cuts. In Denmark more than 50 percent of your total income is taken by the state and tax cuts would result in problem financing the large public sector.
So now they have lowered the tax on beer and soft drinks. For the information technology business that is good news. First a Friday beer is making 90 percent of the human resource work in Denmark. The students start early with the Friday bars on the high school campuses. It enables them to socialize and building networks they can use when seeking jobs later in life. The last 10 percent is the 5 minutes employee development talks which are mandatory in many firms.
But for the information technology business the lowering of tax on soft drinks is interesting. Typical workers in the business regard the access to unlimited amounts of soft drinks like Cola as 20 percent of their total salary. For many it is more important than education and courses.
The reduction of taxes on soft drinks could very well result in lower salary demands and if it is the case, the Danish information technology business would be able to expand because they can keep their costs at a more competitive level.
The tax cuts on soft drinks are financed by taking money from student grants and people on welfare. While I feel sorry for the students who would be more dependent on their social heritage (Their parents ability to finance their schooling) it was a necessary move due to the European Union which have ruled against Denmark allowing millions of students to enter Denmark and demand student grants just as if they have lived in Denmark all their lives. Now they can become moochers on Danish Schools doing nothing as most foreign students living here do and be paid for it.
For the people on welfare, they now have to move to Jutland in trailer parks or worn down houses. I feel sorry for them as well but we are living in a globalized world where Denmark is bound of international costly conventions. It is just sad but there is nothing to do about it other than pointing out that there is not enough suffering abroad to justify what ordinary Danes have to go through.
2013 is a year where the winner takes all and the losers loses everything – perhaps even their soles.