Those in my circle that are in favor of socialism often like to reference the socialist leaning states around the Scandinavian peninsula. They point to Denmark's low unemployment and high average wages as an example of how increasingly progressive policies lead to positive economic growth. What is about these countries that seems to work well with Socialism. Why is it not applicable to our situation in the US? Or, maybe the extent of their socialism is vastly exaggerated?
What the socialist argument fails to take into account is that a majority of Scandinavian countries have freer markets than ours do. They have an essentially more socialist approach to a welfare state, but with respect to their approach to corporate taxation and overall barriers to economy, the united states ranks higher than they do. This accounts for the higher average wage and lower rates of unemployment.
- Haynakozo
link: http://ift.tt/1p4QAnD