WSJ: Swiss Canton Glimpses Growth’s Limits

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Zug is a Swiss canton where low taxes have brought high employment and lots of wealth. It also has real estate prices and cost of living so high that none of its workers can afford to live there:

"If you make 300,000 or 400,000 francs, you struggle" in Zug, said Kilian Borter, a public-relations executive, referring to incomes that equal $380,000 to $490,000. Living in Zug "maybe starts to make sense starting at about a half a million" francs a year in income, he said.

And while Zug is a haven for multinational businesses, the income disparity — i.e., the fact that there is literally no middle class — makes it virtually impossible for those businesses to fill low- to mid-level jobs such as administrative staff or accountants. The town can support CEOs but not the CEO's assistant.