This is a product of socialism without protections. Put simply, you have high taxes to redistribute wealth. Unfortunately, the government takes their cut. As government becomes increasingly large / naturally corrupt that cut becomes larger.
The wealthy can leave and gain more else-where and many leave. Increasing the burden. If you don't have heavy border controls, people who are less advantaged move to the country to gain from the social system. You'll also have remote workers move into cities because it is cheaper than their home region. This drives up costs in cities, but isn't enough tax revenue to offset the loss in wealthy people leaving, as it's highly focused. You'll also have people investing and buying property, which also drives up the costs.
At the end of the day, if you want to improve life, you have to focus on
(a) strict immigration policies (reducing pressure from immigrants)
(b) strict import controls (raising internal wages)
(c) reduce social system, focus on citizens and potentially reduce general services
(d) reduce taxes on income, land and sales
(e) increase import taxes and potentially tax on foreigners
If you do the above, it'll reduce the burden on the individuals and protect & improve the internal labor market.
The wealthy can leave and gain more else-where and many leave. Increasing the burden. If you don't have heavy border controls, people who are less advantaged move to the country to gain from the social system. You'll also have remote workers move into cities because it is cheaper than their home region. This drives up costs in cities, but isn't enough tax revenue to offset the loss in wealthy people leaving, as it's highly focused. You'll also have people investing and buying property, which also drives up the costs.
At the end of the day, if you want to improve life, you have to focus on
(a) strict immigration policies (reducing pressure from immigrants)
(b) strict import controls (raising internal wages)
(c) reduce social system, focus on citizens and potentially reduce general services
(d) reduce taxes on income, land and sales
(e) increase import taxes and potentially tax on foreigners
If you do the above, it'll reduce the burden on the individuals and protect & improve the internal labor market.