A California Economist on Czech's Důstojný život
A California Economist on Czech's Důstojný život
It's time to access the global economy
In an article posted yesterday by Kateřina Mahladová of Seznamzprazy.cz, she wrote the story of the monthly cost of living needed in order to live a decent life in Czech Republic, and even more specifically, Prague. See article here.
There is one important concept to understand about her article:
Minimální důstojné mzdy or minimum dignified wage, or monthly cost of living. (In America, the concept is referred to as a living wage.)
Let’s break down this more and add some further comments to her article from the observation of a “California Economist.”
Monthly Cost of Living
These Czech crown (CZK) estimates are presumed to include factors like inflation and fair market value. For purposes of translating currency, I will use 22 CZK = 1 USD.
Monthly cost of living in general in Czech Republic is $1,222.
Monthly cost of living in Prague is $1,409.
Gross wages total $1,415 in the general Czech Republic, and in Prague gross wages are $1,668, per month.
Důstojný život
A simple translation of důstojný život is a dignified life. This concept is contested everywhere and between everyone. What does this mean and who gets to define it? In Czech, they are certainly not shy about sarcasm-laced-with-hard-truth.
Here is one response from a commentor:
Tak nebreč tady na diskuzi a jdi makat, ty tlučhubo. 😄 Znám osobně docela dost lidí, co mají vyděláno tolik, že už by nemuseli dělat nikdy nic, a rozhodně nechodí tady brečet jak malé holky a většinou uplatňují svoji potřebu pořád něco dělat a vydělávají tím prachy. To jen ti rádoby podnikatelé, co v životě nasekají jen dluhy, tak končí tady a melou pořád ty samé výkaly dokola. 😄 Ty budeš buď studentík bez kariéry a nebo neúspěšný plačka.
Here is what Google Translate says:
So don't cry here for a discussion and go fuck yourself, you bastard. 😄 I personally know quite a few people who have earned so much that they would never have to do anything again, and they definitely don't cry here like little girls and mostly exercise their need to do something all the time and make money. It's just those would-be entrepreneurs who only cut off debts in their lives that end up here and keep grinding the same feces around. 😄 You will be either a student without a career or a failed cry.
Certainly, the translation is not exact, but you catch the sarcasm-laced-with-hard-truth. And this comment above was the response to a comment suggesting that self-employed Czechs are among the highest in Europe. No joke.
Kateřina fills in the color of what a dignified wage means:
Dignity is also expressed in the fact that among the expenses taken into account are not only the things one needs for immediate survival, but also the finances to go to culture from time to time, pay for children's clubs or go on holiday in the Czech Republic and have savings for unexpected expenses.
(translated from Seznamzpravy.cz)
Net monthly costs for a dignified life in Czech Republic and Prague
These monthly wages are pre-tax, and not inclusive of payments towards social programs. So any income made above this, is savings and investments for you.
How many men and women meet the threshold for a minimum dignified wage?
This chart breaks down the men and women and how many of them make the minimum dignified wage of (let’s round up to) $1,500 per month in Prague versus Czechia, in general. In Prague, more than 50% of women make at least the minimum dignified wage. The purple bar denotes amount of Czech women earning at least the minimum dignified wage versus women who do not earn the minimum dignified wage (orange bar). Whereas in the same area, more than 60% of men make at least the minimum dignified wage.
The Missing Income
It’s too obvious, but I will say it:
The missing income that can close the sex wage gap and increase the dignity of life is investing.
To spend money on a dignified life where you save for emergencies, and you save for holiday trips, and you attend ballets, then add to these monthly habits, saving to invest. Short term and long term, the ability to make investment income increases the standard of a dignified life.
Czech Republic Economic Freedom
Over the last 13 years, flying back and forth from California to Czechia, I’ve met people. In general, the intelligence of Czech people is quite high relative to the global population. In indexes gauging economic freedom, Czech Republic is usually in the top 25% of all countries.
Source: Heritage Foundation 2022 Index of Economic Freedom | Link
This especially applies to Generation Z, where more of this cohort speak English and have a longing for an adventure.
If Generation Z began to learn the fundamentals of investing, they could build a future where they have more money to enjoy more of their freedoms, or in other words, a dignified life with access to the global economy.