Nordic Countries' Socialism Looks Great -- Until You Throw It Up Against Capitalism
How great is life in Nordic countries?
Well, relatively great, it turns out.
From a book review by economist Tyler Cowen at Bloomberg:
Nima Sanandaji, a Swedish policy analyst and president of European Centre for Entrepreneurship and Policy Reform, has recently published a book called "Debunking Utopia: Exposing the Myth of Nordic Socialism." And while the title may be overstated, his best facts and figures are persuasive.For instance, Danish-Americans have a measured living standard about 55 percent higher than the Danes in Denmark. Swedish-Americans have a living standard 53 percent higher than the Swedes, and Finnish-Americans have a living standard 59 percent higher than those back in Finland. Only for Norway is the gap a small one, because of the extreme oil wealth of Norway, but even there the living standard of American Norwegians measures as 3 percent higher than in Norway. And that comparison is based on numbers from 2013, when the price of oil was higher, so probably that gap has widened.
Other examples from the book from Sanandaji himself at FFF:
- An often forgotten fact is that the Nordic countries had conservative small government policies until around 1960. Already at this time, the Nordic countries were leading the world in terms of prosperity, low poverty, low child mortality and long life spans.- If anything, since introducing large welfare states, the Nordic countries have lost some of their social success. The reason is that a significant portion of the population have become dependent on welfare handouts, and thus trapped in social poverty.
- The combination of open borders, high taxes and generous welfare has been anything but a success in Sweden. The result is massive social tension and increasing poverty.
- I systematically show that the American Dream of social mobility is in fact more alive for immigrants to the United States than for any Nordic country.
- Lastly, while the idea of Nordic-style democratic socialism is all the rage among the left in the United States and other countries, in the Nordic countries themselves social democracy has never been weaker than today. In Denmark the social democrats themselves have introduced massive market reforms and called for a much slimmer welfare state.
Bloomberg via @Mark_J_Perry
A colleague of my husband's got a professorship .. i forget if it was tenure track or tenure... In Denmark and could barely scrape by. He had a tiny apartment and could not afford a car. He is no longer in Denmark
I will say however that expats tend to be wealthy. I am guessing Americans in the countries you mention are wealthier than the American mean. It takes a certain education level, skill set, and/or social connections to snag a job abroad that makes moving worth it. So the sample set is skewed.
NicoleK at August 17, 2016 7:30 AM
The homogenous social culture helps. Also, the tendency to stay in one's hometown or area for life. These combine to replicate tribalism and the shame culture.
It's one thing to be publicly drunk and panhandle in front of strangers. it's another to do it in front of people who know you or your family. Tends to keep people in line.
Conan the Grammarian at August 17, 2016 8:12 AM
One thing worth pointing out is that all of the Nordic countries enjoy large trade surpluses, thanks mainly to tourism. So to an extent, visitors are subsidizing their welfare programs.
I will say this: Denmark is one of the few nations in western Europe which has taken a strong stand against the invasion of "refugees".
Cousin Dave at August 17, 2016 8:44 AM
Any coincidence that feminism came to dominate these societies just as they were opening their borders and began giving away welfare benefits?
So, is feminism the symptom, or the disease?
Jay R at August 17, 2016 12:25 PM
One thing worth pointing out is that all of the Nordic countries enjoy large trade surpluses, thanks mainly to tourism. So to an extent, visitors are subsidizing their welfare programs.
Not to mention having their military subsidized by America
lujlp at August 17, 2016 2:44 PM
https://www.aei.org/publication/ikeamerica-should-the-us-really-be-more-like-sweden-a-qa-with-economist-tino-sanandaji/
Crid at August 17, 2016 5:43 PM
"Not to mention having their military subsidized by America"
Good point. They haven't had to provide for their defense since WWII. That has freed them to transform their own militaries into glorified welfare programs.
Also, Finland was heavily subsidized by the Soviet Union until about 1985. The Soviets used it as a conduit for smuggling Western technology. There are legendary tales about an IBM mainframe that disappeared off of a train going through Finland.
Cousin Dave at August 18, 2016 11:12 AM
> That has freed them to transform
> their own militaries into glorified
> welfare programs.
I know what you're thinking, but this is not the greeting committee of an Orange County sex party.
Crid at August 18, 2016 6:32 PM
Sanandaji was recently on the Tom Woods Show:
http://tomwoods.com/podcast/ep-717-debunking-utopia-exposing-the-myth-of-nordic-socialism/
Lsomber at August 19, 2016 7:03 AM
I get to both Copenhagen and Helsinki fairly regularly.
They are cripplingly expensive. Think $50 for a burger and a couple beers expensive.
Jeff Guinn at August 20, 2016 3:21 AM
Even the NYT is not impressed.
Jeff Guinn at August 20, 2016 3:23 AM
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