YLE reports that despite the economic downturn in Finland, those who retain their jobs can expect to see an increase in real income of 4.6% this year.  By contrast, last year’s increase was 1.5%.

Quoting the Taxpayer’ Association, YLE notes that ”The group attributes the improvement to slowing inflation and tax cuts. This year earned-income taxes are to be lowered overall to the tune of 870 million euros. The government — under the lead of conservative Finance Minister Jyrki Katainen — has also removed some tax penalties for raising one’s earned income”

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2 Responses to “Wage Earner’s Purchasing Power Set to Rise in 2009 – in Finland”

  1. Smart says:

    Juandos, yes, the Europeans had a rude awakening rtnceely.The E.U. has much worse debt problems than the U.S., while gasoline prices are 2 1/2 times higher and natural gas prices are six times higher.I wonder how much further European living standards will fall?We could’ve produced an additional 1 million barrels a day of crude oil in 2011, instead of 120,000 a day, to lower prices and create jobs:EIA Expects Higher U.S. Crude Production Mar 7, 2012″U.S. crude oil production increased by an estimated 120 thousand bbl/d to 5.60 million bbl/d in 2011. A 390-thousand bbl/d increase in lower-48 onshore production in 2011 was partly offset by a 40-thousand bbl/d decline in Alaska and a 230-thousand bbl/d decline in output in the Federal Gulf of Mexico/GOM.The rise in production is driven by increased oil-directed drilling activity, particularly in onshore shale formations.”

  2. Aleksandr says:

    I take it that most of the people here are cenellaghd mathematically. Let me point a few things out before everyone buys into the hype. All of this is simple back of the envelope stuff that should be easy to follow.First, look at the graph. See the number of new wells going up? Let us be conservative and ignore the upward trend. Assume that for all of 2011 the 407 well count for Q1 holds. That gives us 1200 new wells. Add to this the 856 wells for Q1 2012 and we get around 2000 new wells. The increase in daily production came out to be around 320,000 bpd. See the problem? You are looking at production of 160 bpd for each one of those $5 million dollar plus wells. This means that the operations are nowhere near self financing yet. There is a urgent need for the producers, many of which blew their brains out on shale gas production, to borrow massive amounts of additional cash or to sell off ’assets’ in other areas. I don’t know about many of you folks but I don’t see this as good news for the average producers. The few that have the best properties with high IPs and reasonable depletion rates will make most of the profits. But 80% of the wells will wind up breaking even or losing money. In the good old days of conventional oil production a horizontal well of such length would produce more than 10,000 barrels of oil. Most companies were content to drill cheap and shallow vertical wells that produced less than 1,000 barrels a day and had a very low depletion rate. They would still be producing strongly ten years after they were first drilled. In the case of today’s shale wells you are looking at very expensive and very high depletion rates. While a good accountant can make the income statements look OK for a while once the historical data shows that the EURs are too high the game will be over and borrowing will turn out to be much harder for the producers in non-core areas. I would keep an eye on this space. I suspect that a year or two from now Mark will be dropping this as he has dropped the profitability of the shale gas industry story and be looking for some other bit of hype to promote.

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