I would guess that it isn't so much the winter weather and the price of goods that is making folks want to leave: I'm in Norway, which traditionally has expensive goods and bad weather. Everyone complains about their weather, but from my experience, the locals don't find it to be all that detrimental to life - I've had to learn to dress better for the weather and stuff like that. (of course, I don't know how strong the icelandic currency is at the moment, so that could be an issue for buying those goods). The second one - that it is really controlled by interests behind the two main industries - is likely much more key. Having a small island country with only two main industries makes it so that folks don't have as much opportunity as they would in mainland Europe or Canada. Not only that, but one of the main industries - fishing - can be rough work in itself. The place being an island also prevents some of the options for avoiding the high prices for goods: Here I can take a (free!) bus just over the Swedish border and buy things more cheaply, but they'd have to take a flight somewhere.