Due to the shrinking working population in Europe, the cost of living has been steadily going up. In Austria, the old tend to be more in number when compared to the youth due to increased mortality rate. Proper healthcare coupled with security have ensured that the citizens of Austria enjoy longer lives. Since family planning is a fundamental social pillar in Europe, most of the families are relatively small with couples having one or two children due to a high cost of living. The youthful population is the most productive in a country’s economy, due to a shrunk workforce, more jobs have to be outsourced.
Demand for fresh farm produce soars high during winter spells as the supply of these farm products is interrupted by bad weather. Residents have to resort to buying canned and processed foods. This demand for these products pushes their prices upwards making basic foods expensive to buy. People who live in urban settings such as in the capital Vienna, do not enjoy the option of farming their food. Urban living is extremely economical on space making farming space a luxury in the city. During these long winter spells, vegetables are not only expensive to buy but of a limited variety.
Austria imports most of its meat products in canned form, this has made these products expensive by the time they are shelved in your local convenience store. As products pass from one hand to another, the initial cost goes up. Each buyer has to cover for expenses incurred, as each person in the chain of logistics imposes a fee for cost incurred, goods rise in cost. Chicken, turkey and some variations of meat top in cost when it comes to expensive foods. Since the local supply cannot meet the demand for meat, businesses have to result to importation at an additional cost to fill the deficit.
As a country, Austria does not have a robust manufacturing sector that can effectively cater to its local market. This means Austria has to depend on the importation of manufactured goods to meet its local demand. Importing these manufactured goods comes at an additional cost which is passed on to the final consumer. Consumers have limited options in terms of locally manufactured goods to pick from. This leads to consumers opting to order their preferred choices from outside Austria, attracting an importation fee from the ta collector.
Developed countries, have a staggering expenditure bill due to the different costs that the government has to cover to ensure the standards of living are upheld. Unlike developing countries, the developed countries rarely resort to loans to supplement their running budgets. If anything, they are expected to give loans, in such a set up there is a need to create alternative revenue channels. Living in Austria means you will be subjected to heavier taxation as the government tries to meet its budget collection targets. The level of productivity of Austria’s working population does not match its gross expenditure, this has lead to heavier taxation on the working class.