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Is IKEA the World’s Largest Charity?

mentalfloss.com — You read that correctly; IKEA ’s technically a charity. But before you write down the umlaut-riddled name of your most recent dresser purchase as a charitable donation on your next tax return, it’s worth exploring this ownership structure, which was brought to light by a 2006 article in The Economist.

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  • markbrown, on 05/08/2008, -4/+84I'm writing this comment as I sit on my $13 Ikea chair. Best $13 chair I've ever sat on.
    • Schrodinger2, on 05/08/2008, -0/+49After perusing the comments I think a lot of people missed the point of the article. They have some shady charity-thing set up as a scheme to evade taxes. Certainly not a great thing.
      • UtilityPole, on 05/08/2008, -4/+5Well, it's only shady if it's illegal. If Swedish accounting practices allow for it (I don't know a thing about their GAAP equivalent), that makes it nice and legal.
        • gurudrew, on 05/08/2008, -3/+16Being legal does not make it right.
          • UtilityPole, on 05/08/2008, -3/+4You're putting words in my mouth- I'm not making an ethical argument, here. If someone says something's "shady" they're usually hinting that something is, or looks illegal. All I said was if Swedish accoutning laws say it's legal, it's legal.

            There's a difference between making an ethical argument and a legal argument.
          • gurudrew, on 05/08/2008, -1/+4@UtilityPole
            I'm not putting words in your mouth. I actually agree with you. However, just because something is legal that does not mean that I have to like it.
          • thrallie, on 05/08/2008, -1/+1gurudrew, he never said you have to agree with it.
        • DailyWail, on 05/08/2008, -2/+26Being illegal doesn't make it wrong.
          • YoctoYotta, on 05/08/2008, -2/+5Shame on anyone who buries you.
          • gurudrew, on 05/08/2008, -0/+4Your statement is short and simple. It's a shame more people can't see through the propaganda long enough to understand it.
        • Terr01, on 05/08/2008, -0/+2Wrong. Plenty of things can be shady while technically legal. It's synonymous with "disreputable".
      • 15charmaxwtf, on 05/08/2008, -0/+1Sorry I haven't read the article, but pretending to be a charity so some monolithic organisation doesn't steal from you sounds like a damn good idea---good if everyone could do it.
      • KingBabi, on 05/08/2008, -0/+1In all fairness, Swedish taxes are around 50%. Ikea couldn't have gained the market share it has if it had to shell out half its earnings each year.
    • dfsjdkflasjk, on 05/08/2008, -6/+12I'm writing this comment as I sit on my $250 leather chair. Best $250 chair that I've purchased in the past week.
    • EarlOfLade, on 05/08/2008, -0/+6It is Swedish - it is "lagom"!
    • mythicflux, on 05/08/2008, -1/+3Lets be honest here. We are all slaves to the Ikea nesting instinct.
    • litkaj, on 05/08/2008, -0/+2Yeah, and my fiancée has the dresser pictured in the article.
    • cbartlett, on 05/08/2008, -2/+2Until it falls apart in about 3 years.
  • ncc74656m, on 05/08/2008, -2/+30Well now I feel much better about the wasted time on the Jersey Turnpike trying to get there.
    • lukeydukey, on 05/08/2008, -2/+3If you're from the city, I think there's buses to take you to and from ikea. It's that efficient. As for the meatballs, I'll drive there with my dad and just go there to eat sometimes. It's that good.
      • jakobrowning, on 05/08/2008, -0/+5yeah, but bus drivers don't typically appreciate their riders lugging living room sets along for the ride.
        • onelikeseabass, on 05/08/2008, -0/+1oh that's why you pay for the $100+ delivery service!
      • KingBabi, on 05/08/2008, -0/+1Speaking of meatballs, the smallest amount you can get in the states is the same as the largest amount in Europe.
    • Balanced, on 05/08/2008, -0/+5I think that's a New Jersey issue, not an Ikea issue.
    • imLissy, on 05/08/2008, -1/+3The one in Paramus isn't as crazy as the one in Elizabeth and not nearly as annoying to get to, well, depending on where you live
    • dafragsta, on 05/08/2008, -0/+6Did you read the article? The headline is misleading. IKEA is a pretty ***** evil multinational corporation that is owned by a charity that has a >$30B endowment and it issues less than $2M in grants each year. It pays franchising fees to another private company that still owns the IKEA branding with an undisclosed ownership, which is probably the original owner who donated the company to a foundation he created. It is extremely shrewd and it's all a ploy to not pay taxes.
      • republicker, on 05/08/2008, -0/+6Whats wrong with not paying taxes? Everyone I know wishes they didn't have to pay taxes. I'm guessing you just skipped all your deductions on your 07 taxes for the good of humanity.
        • dafragsta, on 05/08/2008, -1/+2What's fair is fair. If there was no income tax, I would see no problem with not paying taxes. As long as the government where you lives enforces tax laws, it seems unfair that the ones who have little to no expendable income have to pay while large MULTIBILLION ***** DOLLAR corporations skirt by with the assistance of extremely expensive lawyers and accountants.

          Don't bring the Ron Paul self-righteousness as an excuse to cut corporations a break and make the middle and lower class carry the burden of taxes while they simultaneously pump money into companies like this. I supported Ron Paul and even donated $200 to his campaign, but I'm not going to pretend that I don't disagree with him partially and I certainly don't believe in tax breaks for the rich because they can afford good lawyers and accountants.

          BTW, I DID take all standard deductions this past year. Nothing fancy, no itemized deductions. If everyone else had to give it back, I'd gladly give back my $600 rebate check because it's just funny money that will only hasten inflation and that money is not going to be with the people who get it for very long.
          • thomashauk, on 05/09/2008, -0/+1The guy who owns the company ultimately has to pay taxes, and probably more then you will in several lifetimes
    • brainscab, on 05/08/2008, -0/+1LOL, I can get there fine, but going home is a bitch. I always get stuck on Jersey's never ending highway. I tell you this people, every offramp in Jersey just takes you to another highway.
  • postaldave, on 05/08/2008, -32/+22ikea is the swedish word for "cheap crap"
    • chanop, on 05/08/2008, -11/+7ROFL........rolled into my ikea desk and shattered it
    • KMartSheriff, on 05/08/2008, -1/+39Well it's the best "cheap crap" that I've ever bought and has lasted me years. I don't care who says what, IKEA ***** rocks.
    • Murdats, on 05/08/2008, -12/+2ikea is the english word for "cheap crap"
    • vinnyvenus, on 05/08/2008, -1/+10What are you talking about? I hardly Ikea's furniture are crap. They might be cheap but they are also durable. I have saved a lot of money by buying my furniture from Ikea although some of their items are a bitch to assemble.
      • UtilityPole, on 05/08/2008, -0/+9He might be a bit too... "hefty" by Swedish standards.

        Don't be surprised if your new IKEA chair can't support your XXXL McDonald-fed ass.
    • sn0w, on 05/08/2008, -0/+11Just in case anyone cares, cheap crap is called "billig skit" in Swedish.
    • UtilityPole, on 05/08/2008, -6/+2No it isn't. Where the hell did you hear that? Friendster? IKEA is an acronym: Ingvar Kamprad, Elmtaryd, Agunnaryd. Ingvar Kamprad grew up at Elmtaryd in Agunnaryd. And for the record- I've gotten nothing but the best value for their furniture.
    • altgeeky1, on 05/08/2008, -4/+1What an uppity, elitist comment.
      Surprising to hear such snobbery from Kentucky (!!) - you ought to visit Manhattan sometime.. you'd love it.




    • xiphy, on 05/08/2008, -1/+0Well, their "cheap crap" is perfect for a young single guy in his mid 20's... Simple (but stylish), effective, economical. I've literally furnished my place for less than 50% of retail price via Craigslist. The best part? When I'm done, because the demand and turnover for this stuff is so high, I can unload it all (including pickup) for what nearly exactly what I paid for it (sometimes more!). Net effect = free furniture!
      • KMartSheriff, on 05/08/2008, -0/+2Sorry I couldn't help but notice you have a stick up your ass.
  • nabhanc, on 05/08/2008, -4/+73So basically this is a rehash of an Economist article that isn't linked to?

    buried
    • thegreenginger, on 05/08/2008, -3/+3Yes, I believe this is very old news which I've been using the enlighten dinner table conversations since I read the article in the Economist.
      • jamesdew, on 05/08/2008, -1/+2an ikea dinner table?
      • mousky, on 05/08/2008, -1/+1You didn't know before the Economist article that IKEA is structured in such a way to minimize paying taxes?
  • applemachome, on 05/08/2008, -22/+4I think the longest a chair from there lasts is about a month.
    And don't get me started on how many people have asked me to put together crap for them, because I actually know how to use tools.
    • Jwoey, on 05/08/2008, -1/+9Don't worry, I wasn't going to ask. I don't know about their office chairs, but my bookcase, 2 work desks, printer table, dining table, and 4 dining chairs have all served me very well. I love Ikea.
    • Napalmhaze, on 05/08/2008, -1/+7They ask you to put it together because you ARE a tool! (The tools that were supposed to come with the furniture were missing).
    • UtilityPole, on 05/08/2008, -2/+2Maybe you're a bit too fat by Swedish standards? Everything I've ever bought from IKEA's affordable, yet sturdy. If their products were crap, they wouldn't be as successful as they are, right now.
    • altgeeky1, on 05/08/2008, -1/+4I just got a fantastic leather couch (it's strong, I don't "sit" in couches.. I "plop" in them hard), coffee table, and extra seating chairs..
      At the very low end of Ikea lines, there ARE some items that have that "temporary lifespam" typical of Walmart quality, but they are the exception.
      The better items (most items) withstand tons of abuse in the showrooms.

      The wooden chairs (I have one) are OK for guest seating... they flex by design. If kids (or fat guests) use them as trampolines, they'll break I suppose. It's only fair to complain they "last a month" if there's some other product that lasts longer at the same price.

      I wasn't ever going to get particleboard again after a pricey Jordan's entertainment center fell apart after 3 moves. When it fell apart, I could see it was wooden dowels and glue at the joints (no wonder it didn't last!). Ikea DOES use a lot of recycled fiber(particle) board but weak points are all reinforced with inset metal locking joints.

      For well under $5k you can get an AMAZING Ikea kitchen complete... that amount of change elsewhere would get a "builder edition" cabinet set from Home Depot or Lowes (except they'll include the meth addict 'installer' who will scope out your belongings while he's there...)
      • Napalmhaze, on 05/08/2008, -1/+1Yeah Ikea do some great stuff, the reycled stuff is made from cardboard. Its the sort of stuff you buy when moving in your first flat. Its not meant to last, if you try and take it apart it just crumbles, not likely to take being moved to another flat. Ikea have a rep for that kind of furniture, coffee tables, shelving units, etc... None of it built to last.

        But the stuff they make that you would expect to last is great quality, like their beds and sofa's, they even do some more high end kitchen's. having worked there I got to see how they keep costs down so much, doing things like using trolly wheels as castors and making stuff from recycled material. I'm sure theyve improved much of their cheaper range since I've worked there, but when you can buy a shelving unit for £15 who really cares that its not made to last, so long as you recycle it when youre done!
  • brankapanic, on 05/08/2008, -14/+5It feels like I'm buying from a charity shop, all the cheap crap falls apart like it's secondhand.
  • prophetpimp, on 05/08/2008, -6/+5so do i get a Tax exemption on buying Ikea?
  • sb66, on 05/08/2008, -6/+19Looks like Sweden needs to work on its corporate / charity laws.
    • BECoole, on 05/08/2008, -0/+10No, they need to work on their tax laws. They are confiscatory.
    • skinflute, on 05/08/2008, -1/+3I'm pretty sure Dutch charities don't care about Swedish laws.
  • UberNick, on 05/08/2008, -6/+62Ikea. Selling furniture for college kids and divorced men
    • Jwoey, on 05/08/2008, -1/+39My wife loves Ikea.
      • AudioPhil3, on 05/08/2008, -0/+1You should Divorce her and experiance the joy of IKEA!
      • mal1964, on 05/09/2008, -1/+1And your money.
        • Jwoey, on 05/09/2008, -0/+2What about liking Ikea means she's in it for the money? I make only like 5k a year more than she does. We keep our finances separate.
          • mal1964, on 05/10/2008, -0/+2The truth is i was tying my own comment and when posted i was in your box, So i erased it and just off the top of my head that's what you got in the short editing time. But it was light hearted not mean. Sorry
      • xtraa, on 05/09/2008, -0/+1And send her back to college.
    • diggdeep, on 05/08/2008, -1/+8Yup. Just moved, and my girlfriend bought an entire room for about $1200.
    • KMartSheriff, on 05/08/2008, -1/+11Amen.

      /college kid
    • mt4055, on 05/08/2008, -0/+10Amen.
      /Divorced man
      It is "cheap crap" but it is all I can afford at the moment.

    • Phearce, on 05/08/2008, -0/+6Also perfect for kid's stuff. They outgrow things so quickly that saving money at Ikea makes good sense.
    • bfisch1983, on 05/08/2008, -0/+5I have a feeling people aren't picking up on the Coulton reference
      • rendersan, on 05/08/2008, -0/+4The sixth rule of Digg is that if someone references a Jonathan Coulton song, you *must* give them a shout back. Shame on everyone for leaving UberNick hanging like that.

        This was not a triumph. I'm making a note here: epic fail.
        • nicc, on 05/08/2008, -0/+1I wouldnt know if someone referenced a Johnathan Coulton song if I saw it as I've never even heard of that person before!
        • UberNick, on 05/08/2008, -1/+1Thanks rendersan. I was waiting for it!
        • Pittance, on 05/08/2008, -2/+2You cant make a rule that most of the population doesnt even understand. Who is John Coulton and why should anyone care? Maybe make an article on it and digg it up to the front page, then the user base will know.
    • altgeeky1, on 05/08/2008, -0/+8My girlfriend loves Ikea, and she generally shuns "cheap" things (cheap being low-quality, not affordable).

      Divorced men shop at Ikea? Really? Most divorced guys I know fill their home with football bling, and get a new sportscar.
    • FoxOrian, on 05/08/2008, -0/+5Moved into a new place in september, furnished the living room with alot of their Brown-Black items. Whole room for under $600 and it looks awesome. I sure cant complain. Plus, if I have to move again next year, I can just disassemble it all!
    • rendersan, on 05/08/2008, -0/+11Meatballs.

      Tasty.
    • had3l, on 05/08/2008, -0/+1If you don't have a home, you can find one there.
    • AudioPhil3, on 05/08/2008, -0/+1DAIM!!
  • Lopen, on 05/08/2008, -0/+57How can people say that Ikea furniture is hard to put together and cheap crap? Half my house is from Ikea and I've never once had an issue with anything. And quite a bit of furniture has gone through two moves.
    • Tollofsen, on 05/08/2008, -2/+8Chances are they are about as handy as a walrus in a wheelchair. Tighten the darned screws properly!
    • davidrools, on 05/08/2008, -0/+10a hex bit on a drill does wonders for Ikea assembly :)
  • sagat, on 05/08/2008, -1/+123The only people who have problems with Ikea furniture are those who are just too ***** stupid to put it together in the first place.
    • KMartSheriff, on 05/08/2008, -1/+23Your newsletter, I would like to subscribe to it.
    • thelastcivilian, on 05/08/2008, -0/+19Seriously, most of the furniture is put together with an Allen key - which comes included in the box!
    • trejrco, on 05/08/2008, -0/+4That's not the dammed point - the point is how, through various machinations, this behemoth avoids paying corporate taxes ... and what stops others from doing likewise?
    • altgeeky1, on 05/08/2008, -2/+1I've seen more elitist comments about "cheap stuff" than I have seen complaints about instructions/assembly.
      • lianculta, on 05/08/2008, -0/+2Most of the items that I've owned from Ikea have broken. I'm not harsh with my furniture either, it IS just cheaply made.

        I have a computer chair from zuomod which cost roughly $130 (at cost). I had a problem with the piston, and they immediately sent out a replacement, no questions asked. You won't get that kind of service from a place like Ikea!

        However that won't stop me from buying Ikea products.
    • KingBabi, on 05/08/2008, -0/+1"If it’s possible to assemble a piece of IKEA furniture without cursing at the top of your lungs, I’ve never seen it happen. There’s always a missing piece of hardware, an unclear spot on the instructions, or an excruciating amount of hex wrenching to be done."
      *****. I've had two homes built on Ikea.
  • lnxfi, on 05/08/2008, -5/+3The new Ikea in Norristown is massive and the best part about them moving is that the old location outside the Plymouth Meeting Mall is being turned into a Dave and Busters! I can't wait!
    • jankind, on 05/08/2008, -0/+1I was wondering what they were going to do with that building, my wife and I said when they moved, that the old one would be a great spot for a Dave & Busters. Two Ikeas and now two D&Bs! Nice.
    • cbartlett, on 05/08/2008, -0/+1Really? A D&B? Neat! That will be much more convenient than Columbus Blvd.
    • xtraa, on 05/09/2008, -0/+1D&B. OMG. Sounds like hours of organized fun for the lowbrow-sapiens.
  • quentinp, on 05/08/2008, -1/+6One positive thing, I think I remember reading an article basically saying that Ikea's super cheap breakfasts and meals act as a sort of soup kitchen in a lot of cases, except it allows the poor to buy their own meals if they are too proud to accept pure charity.
    • Phearce, on 05/08/2008, -0/+2?? The Ikeas I've been to (Pittsburgh, Plymouth Meeting, Norristown, North Jersey) were nowhere near residential areas. I understand that Homelessness does not equal housing, but the Jersey location is the only one that there would even be a chance for a homeless person to set up camp (so to speak).
    • R3morse, on 05/08/2008, -0/+2The food is their to attract customers, and by being so cheap (obviously subsidised) it succeeds. It's not for the homeless, although I'm sure some benefit from it.
  • Metasquares, on 05/08/2008, -1/+10In the USA, this would be considered a tax haven. That whole thing about a for-profit owning the rights but a non-profit owning the stores seems like it would violate the "commerce at arm's length" requirement. I'm not sure about the laws in Sweden, though (and IANAL to begin with).
  • lennybird, on 05/08/2008, -1/+23Long ago in days of yore
    It all began with a god named Thor
    There were Vikings and boats
    And some plans for a furniture store
    It's not a bodega, it's not a mall
    And they sell things for apartments smaller than mine
    As if there were apartments smaller than mine

    Ikea: just some oak and some pine and a handful of Norsemen
    Ikea: selling furniture for college kids and divorced men
    Everyone has a home
    But if you don't have a home you can buy one there
    -Jonathan Coulton - Ikea
    • SteelFrog, on 05/08/2008, -0/+3I love Jonathan Coulton's songs.
    • Arkonnan, on 05/08/2008, -0/+9> Ikea: just some oak and some pine and a handful of Norsemen

      Oak and pine? Ha! I guess they couldn't find anything to rhyme with particle board and melamine laminate. :p
  • merien, on 05/08/2008, -0/+26A Dutch 'Stichting' is a not for profit organization, not a charity. the 'stichting' form is used for many charities but also for other things like pension funds, trust funds and safeguards against hostile takeovers.
  • DavidYeah, on 05/08/2008, -4/+5I put together some wire shelving from Ikea for my girlfriend. I didn't feel like I was putting something together, seeing as I was literally bashing it with a hammer and a block of wood until it stood up straight. And I was following the directions, too.
  • kurtwinter, on 05/08/2008, -1/+40I really don't care what they are. If it weren't for Ikea, my home furnishings would have been purchased at Wal*Mart. And for all the Ikea-bashers out there, who (rightly) say Ikea is design without quality, try Wal*Mart, which has neither.
  • Kenzan, on 05/08/2008, -0/+4I used to love IKEA, the quality was great and the prices even better.
    But recently, I have to sadly admit that the quality on most of their goods seems to have gone way down, and prices have shot way up.My thinking is that this coincided with a switch a few years ago when they launched a big push to manufacture the products in China rather than Sweden.
    • slundal, on 05/08/2008, -1/+1Maybe it's because you live in the USA and recently your dollar bills ain't worth the paper it's printed on? It's still cost the same to build them in china and other Asian countries were production costs now are rising thanks to all these stupid human rights organizations who think workers should have higher salary. About the quality tough i totally agree.
  • modsuperstar, on 05/08/2008, -0/+8Jerker desks, best IKEA item ever
    • Lopen, on 05/08/2008, -0/+2I will never give mine up.
      • MiDri, on 05/08/2008, -0/+3I've heard tales, but alas I can't acquire one of my own... ikea is 4 hours away...
    • venuspcs, on 05/08/2008, -2/+2So do they JERK you or do you JERK them?

      Just Asking!
    • xiphy, on 05/08/2008, -0/+1GALANT for me!! Weeee!!!
  • Napalmhaze, on 05/08/2008, -7/+4Yeah its cheap crap and yeah the store is a nightmare of a maze to get through. Its like funnel people in one end, out they come at the other with bargain furniture.

    But thats not the point. The furniture isnt meant to last, most of it is actually made from recycled cardboard, all compressed. They mash up their returns and recycle them too. When Ingvar Kamprad started out his vision was to have staff working in his stores that could afford to buy his furniture. The staff benefits are fantastic. I used to work at my local Ikea, at the time I thought I was selling my soul. When I look back at that time I realise it was one of the best jobs I've ever had.
    • xiphy, on 05/08/2008, -1/+3It's not a nightmare of a maze.

      It's set up very rationally, leading you through the showroom first to get ideas, a stop for food to rest and refresh you, then through the self-serve area to pick up what you saw upstairs, before dumping you out at the cash - all on one clearly marked path. If you ask me, it's a perfect retail experience, one of the best designed in the world - how very "Ikea".
      • Napalmhaze, on 05/08/2008, -2/+2ok maybe maze is the wrong word. But trust me as someone who use to work there. It gets very busy at times and once you are in you pretty much have to go through the entire store, through all the crowds to get back out. Thats fine if you want to just wander through and look around. but if you know what you want, just want to go in and get it, it can be a nightmare. Having had to deal with people who have just spent the last hour or more fighting their way through the store on a busy bank holiday, I can tell you many people are really exhausted by the time they are out. I've had to deal with all kinds of abuse from people, not becuase they are assholes but becuase by the time theyre out they have lost all patience and just want to go home. It really can be a total nightmare for many people.
        • NucleaRR, on 05/08/2008, -0/+1Our local IKEA has cut throughs to get from one section to the next. I can get to different parts of the showroom and self serve with general ease. So, I ask you when was the last time you were in an IKEA? I will say that the IKEA north of us is not laid out in this way. I assume this is the kind you worked in.
          • Napalmhaze, on 05/08/2008, -1/+1It has been a couple of years since I last went into my local, but they never had cut throughs. Well the did but they were employee only doorways, so that doesnt count.

            Once again why am I not surprised to be dugg down for stating things as they are?
    • mousky, on 05/08/2008, -0/+2Recycled cardboard? Funny, much of the wood furniture looks like it is made from wood particles not pulp.
      • Napalmhaze, on 05/08/2008, -1/+1yes recycled cardboard. Or at least thats what Ikea told me during the induction.
  • jankind, on 05/08/2008, -0/+11I read the article but honestly, the guy lost me from the first sentence. Ikea furniture is so easy to assemble.
  • ChrisWalkr, on 05/08/2008, -0/+47http://www.economist.com/business/displaystory.cfm ...
    Original Economist Story
  • Witchbaby, on 05/08/2008, -2/+2I en sofa fra IKEA sitter far og denger mor.
    Check out the song: Ole Paus - I en sofa fra Ikea.
  • webdesignpws, on 05/08/2008, -2/+1They have a IKEA in cyprus now, well cool
  • sgxyay, on 05/08/2008, -1/+12More like chairity
  • kashi, on 05/08/2008, -4/+2@postaldave:
    your mom goes to college...
  • frank2, on 05/08/2008, -0/+2I believe that Ingvar Kamprad was the original captain of the Black Rock, and that Inter IKEA Systems was set up by him to exploit the power of the island.
  • namore3, on 05/08/2008, -1/+2worlds best charity.... AND worlds best swedish meatballs?!?!?! you can't lose at IKEA
    • bokep, on 05/08/2008, -1/+2If the Swedish meatballs at my local IKEA are the best in the world then Sweden sucks.
  • bmson, on 05/08/2008, -3/+6Ikea is not a charity.
    Stichting INGKA was created for tax-avoidance.

    They had to move IKEA to Netherlands to avoid Swedish corporate taxing.

    I mean, Ingvar Kamprad (one of the richest man in the world) is driving an old Volvo.

    Swedish people love mediocrity.
    Don't be to good or to rich... people might get jealous

    P.s.
    I'm from Iceland and we are also socialists.
    But Sweden has taking this to far in my opinion. Further than any other Scandinavian nation...
    • ever, on 05/08/2008, -0/+2I haven't really noticed that Swedish people love mediocrity; Maybe they did ten years back but not nowadays. I'm Finnish and it's pretty much the same here (actually I think we're more in love with mediocrity than the Swedish), but times have changed a _lot_. Overly consumerist ***** is taking over in here as it is in Sweden.

      + it's very obvious that Kamprad is just doing it for fun, not because of fear of jealousy. You know how (exaggerating!) CEOs tend to look like the guys who take care of their company's trash, but everyone between the highest and the lowest level of the hierarchy is wearing a suit :).
    • bebo666, on 05/09/2008, -1/+2And Ingvar used to be a Nazi.
  • BECoole, on 05/08/2008, -2/+7Ingvar Kamprad greatest accomplishment arguably was getting around confiscatory Swedish taxes, not creating IKEA. This setup is pure genius.
    This just goes to show you what happens when you tax "the rich" so heavily that it makes honest work and clear ownership structures infeasible.
    Ingvar should be applauded for not going on the dole or working illegally under the table like nearly everyone else in Sweden does.
    • bokep, on 05/08/2008, -5/+3Honestly if you were as rich as him, does getting taxed a couple extra hundred million bother you at all?

      Tax the rich some more please. Their taxed money sure keep the highways nice.
      • BECoole, on 05/08/2008, -2/+3According to the tax system, everyone in Sweden is rich.
        Let's tax you some more since you like the politics of envy so much. (and you are one of those rich people)
        How does 75% sound?
    • BECoole, on 05/09/2008, -0/+2What you Lefties fail to realize is that Ingvar wasn't always rich. The Swedish tax system does it's best to make sure that no one gets rich either.
      And the assertion that Gov't can make better use of our money than we can is simply preposterous.
  • jdoublehcubed, on 05/08/2008, -1/+8how many ridiculous errors can we find here?
    1. "arguably the world's largest charity" - I seem to think that have something like twice the endowment of the Ikea foundation makes the Gates foundation "arguably" larger
    2. summarize an article in a real publication (the economist), and then not include a link to it. (ok, not so much an error, more like douchebagery)
    3. By whose estimate is Kamprad the richest man in the world? Forbes says hes not, and you dont have anything saying he is, so why would you include that?
    = buried.
    • Molle7, on 05/08/2008, -1/+0"By some debated estimates, Kamprad is the world’s richest man, and even Forbes’ more conservative accounting pegs him as the seventh-richest person in the world.."

      "By some debated estimates" means that he's not the richest man.
  • screamingjoker, on 05/08/2008, -1/+6Whats a bigger scam, IKEA exploiting their country's tax loopholes, or mentalfloss lifting The Economist's content and putting on their commercial blog?
    • BECoole, on 05/08/2008, -1/+3One vote for "mentalfloss lifting The Economist's content"
  • hamobu, on 05/08/2008, -2/+6That is some Tax scam. It's like Swedish wall-mart or something.
  • xiphy, on 05/08/2008, -0/+0Call it cheap if you will, but you simply cannot beat their price for simple and stylish design solutions.

    I just furnished a new apartment last night... I did three rooms (kitchen, bathroom & office) in a shopping cart of random crap for less than $200. To put it in perspective, I have ties cost more than that.

    Spend money on a few quality items to make a great impression, and save the rest by covering the basics at Ikea.
    • Infra6x, on 05/08/2008, -0/+0What did you buy? Must not have been any kind of real decorations. I spent $500 at IKEA last weekend without buying a single piece of furniture.
  • Number23, on 05/08/2008, -3/+4I make furniture as a hobby (mostly mission) and Ikea stuff is mostly crap. Every piece I’ve seen is pressboard, veneered, laminate junk. I would never let the stuff in my home.
    • DifferentAngle, on 05/08/2008, -0/+3The whole point is that before Ikea there wasnt any cheapish furniture at all - anything you wanted to buy had to be custom made and cost the equivalent of a car today. Ikea made it so that people can _affordably_ furnish their living space. It's durable and looks alright, which is what is important for most people.
    • NucleaRR, on 05/08/2008, -0/+1The furniture you buy at places like Wal-Mart and the likes are press board as well. Even when you go to a furniture store the furniture there too can be made of press board. Take the couches my mother bought. Very nice looking over sized couches all upholstered. My brother in law leaned on the arm of the couch and it bent. When she return the couch it was found that the PRESS board had not been properly stapled. So you can buy cheap crap at any price and quality. IKEA does a great job at fitting a market. That market is people looking for low cost and a certain look. I can tell you now that my wife and I were contemplating a living room set, I don't remember the store, and it was the only thing in the store I would have bought. All the other furniture was so gaudy and ornate.

      /love IKEA furnished most of my house there
    • mousky, on 05/08/2008, -1/+1Good for you. That is the wonder of a free market system. If you don't like something, you find an alternative, or failing to find an alternative, you create the good or service yourself. Three cheers for capitalism.
      • mousky, on 05/18/2008, -0/+1I'm not surprised at being dugg down. The anti-capitalists and anti-free marketers don't like having to pay full cost for their goods and services. They would rather have their lifestyle subsidized by the rest of us.
  • cbartlett, on 05/08/2008, -1/+2The plate of meatballs isn't $2 anymore. It's more like $4.99. No bargain.
  • edwartica, on 05/08/2008, -4/+1Ikea is a charity almighty - for a Nazi sympathizer. Seriously, the founder of Ikea was an advocate for Hitler's youth in WWII. He says something about being young and foolish mind you, but....
  • singingfishy, on 05/08/2008, -0/+2Swedish Meatballs anyone?
  • digjam, on 05/08/2008, -0/+1I kea!
  • TheZorch, on 05/08/2008, -0/+1I love going Ikea stores. Their layout is well maintained unlike a lot of other stores where the employees don't seem to give a damn about how the place looks, and there is always a sale person around to answer questions and they are always so knowledgeable about the stuff they sell. I'd say a lot of other stores in the US need to take a look at what Ikea is doing and adopt their style. Ikea must really treat their employees well because they always seem so happy, while people at Wally Mart seem to always be upset and on edge ... and that's at every Wal Mart I've ever been to.
  • DVmaker, on 05/08/2008, -1/+2Hum, did you guys read the article? It's talking about how the company is cleverly structured to avoid taxes. They're not exactly building houses for homeless children.. becides, a IKEA house would only stay standing for 2-3 years anyway, and then you have to toss it.
  • Shivetya, on 05/08/2008, -0/+3Any company doing this in the United States would be vilified to no end.
  • kds405, on 05/08/2008, -1/+1It's a charity for interior design and architecture.. so basically the world's largest charity does very little good for the world.
  • Blade2000, on 05/08/2008, -2/+1Ikea = cheap particle board/laminate furniture. I had some of that many years ago when I could not afford real furniture.
  • pierrelourens, on 05/08/2008, -0/+1I've had two of these chairs (http://www.ikea.com/us/en/catalog/products/7007846 ... since 2003. They still look great and have withstood people upwards of 200 pounds. Best chairs ever.
  • redbull50418, on 05/08/2008, -1/+0ikea = smart. Your furniture is going to break and get nasty eventually so you will have to replace just be a cheapo and buy this stuff its really actually nice furniture.
  • hexodeci, on 05/09/2008, -1/+1ikea having that much wealth is great....if they do something with it in the end...if they dont, lets get out the pitchforks and raid the stores!
  • Oddish, on 05/09/2008, -0/+2What's with all the people having trouble assembling Ikea furniture? Seriously, I've never experienced any problems whatsoever, either with missing parts or unclear instructions. People are retarded...
    • colol, on 05/23/2008, -0/+1The only problem I've ever had was with my (cue the choir) Jerker desk.

      One of the legs was drilled imperceptibly too small at the top and I couldn't bolt on my extension shelf. A minute with a power drill fixed that. They would have replaced it if I'd taken it back, but why bother?

      Beyond that, everything's always been a breeze and come with parts to spare.
  • Hillsfar, on 05/12/2008, -0/+1This is how corporations, as legal entities allowed to make political contributions and hire lobbyists, are able to collectively do what they do. The fees paid on licensing amounts to 631 million euros in 2004. Taxes paid: 19 million euros. That's 3% taxes after expenses are deducted.

    What's your tax rate? How much do you get to deduct from your annual wages for expenses?
  •  

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