Monday, July 8, 2019

What is the Nordic welfare state really like?

Bernie Sanders points to the economic success of Denmark, Norway, and Sweden as proof that socialism can produce high living standards.  WP reports about a study done by JP Morgan Chase showing that these countries are not as socialist as you might think.

Granted their payroll and sales taxes are higher than those in the US.  Labor unions are stronger and income is more evenly distributed.

But these countries are anything but socialist paradises:
  • Out of pocket spending on health care in the Netherlands and Sweden is the same or higher than the US.  So much for socialized medicine.  
  • Companies have just as much business freedom (free trade, openness to international investment, regulations for new business creation) in the Nordics as in the US. 
  • Estate tax rates are lower in the Nordics than in the US.   
Money quote from former Danish prime minister Lars Rasmussen: 
Denmark is far from a planned socialist economy.  Denmark is a market economy.   

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