• =?UTF-8?Q?Nordic_Economics_Explained=3A_The_Difference_Between__?= =?UT

    From (David P.)@21:1/5 to All on Tue Aug 24 23:59:54 2021
    Nordic Economics Explained: The Difference Between
    “Compassionate” Capitalism and Socialism
    by David Bruining, July 13, 2019, fee dot org

    “Compassionate” capitalism: a better name for what Nordic
    countries practice. It is certainly true that Sweden,
    Finland, Norway, & Denmark have notable economic successes.
    It's certainly false that they have been achieved thru
    socialism. Nordic countries focus on combining a free
    market system with several social programs.

    This nexus gives way to programs such as free education,
    free health care, & a guaranteed pension program for
    retirees. For this to take place, the citizens must place
    an enormous amount of trust in their govt & their policy-
    makers. The economy, work, & welfare must work hand-in-
    hand. Policymakers must address ever-changing social
    challenges & then pass solutions thru a democratic process.

    Many Different Derivations of Socialism
    Places like Sweden & Norway have cut the gap between the
    rich & the poor while still preserving the basic benefits
    of capitalism. This type of capitalist model is reliant
    upon creative destruction, a term coined by Joseph
    Schumpeter in 1942: the process of industrial mutation that
    incessantly revolutionizes the economic structure from
    within, incessantly destroying the old one, incessantly
    creating a new one.

    Nordic nations seem to flawlessly use this system, &
    progressives continue to say this is socialism: “My policies
    most closely resemble what we see in the UK, in Norway, in
    Finland, in Sweden,” Rep. Alexandria Ocasio-Cortez told
    60 Minutes. But where does it fall under American standards?
    Can we learn anything from this derivation of socialism?
    There is a lot behind the Nordic model and a lot more
    behind why it so greatly praised.

    Capitalism is a dynamic system, constantly changing and
    evolving because of opportunities for profit and property.
    This ideal seamlessly fits with many other economic systems
    that naturally evolve—much like the Nordic model.
    Progressives like to believe that America is in need of
    such an economic evolution. The poor are so far away from
    the rich that socialism—of all things—is a necessity.
    Americans, we're told, need equality across all sectors,
    all markets, and all classes.

    Economic Models
    Frankly, Schumpeter did not have equilibrium in mind when
    he philosophized creative destruction. Instead, he wished
    for a paradigm where inventors & entrepreneurs would
    improve, creating a type of disequilibrium that would
    actually benefit the constituents of the system. A socialist
    ideal where all are equal on all grounds was not the
    backbone of creative destruction, nor that of any Nordic
    model, nor that of any common sense economy. Why would
    anyone want to kill the goose that lays the golden egg?

    But there are myriad other differences that the Nordic
    model holds when compared to socialism. First, the beginning:
    Nordic nations developed their current economic system after
    years of a free economy with free trade. They would be
    nothing without this foundation. The wealth previously
    created allowed the govt to begin its social programs by
    imposing high tax rates. Never should the govt begin with
    extensively high rates & expect its citizens to keep pace.

    The Economist magazine describes the Nordic countries as
    “stout free-traders who resist the temptation to intervene
    even to protect iconic companies.” Does this sound like
    socialism? Certainly not. What’s more, both Norway & Denmark
    are easier places to do business than the US, according to
    DoingBusiness dot org. The govt benefits didn’t create the
    wealth of these nations—the wealth of the populous created
    the govt benefits.

    Government Interference
    Second, govt interference: a staple of labor laws in the US
    is not found in Nordic governances. A minimum wage set by
    the federal govt does not exist in Nordic or Scandinavian
    nations—& yet they still survive! Unions & organizers help
    to set wages, but the govt does not get involved in the
    negotiation process. This decentralized system is arguably
    the best way to do things. Businesses are free to pay less
    for unskilled work (apprenticeships/internships) & unskilled

    Having a min wage is almost suicide for small businesses.
    They can't hire the workers they need because they aren't
    making enough profit, so those businesses will continue
    to stay small. The min wage makes it difficult for a biz
    to grow. For example, US politicians recently enacted our
    min wage on all of the US territories, including American
    Samoa. In Samoa, the largest employers on the island were
    tuna canner factories.

    Once the min wage was enacted, it destroyed the competition
    on the island, the factories closed down, & the unemployment
    rate skyrocketed. Samoa didn't need the min wage; pols
    simply wanted to feel good about their actions & not look
    at the consequences. The lack of govt involvement allows
    for people to be paid according to their worth, not by
    what Big Brother deems their worth to be.

    Third, education: The Nordic economy is the ultimate "zip
    codes should not define a child’s future" supporter. While
    education is free, the choices citizens have are impeccable.
    This could be because it is extremely similar to the
    libertarian point of view (as defined by economist Milton
    Friedman in his 1955 essay, “The Role of Government in
    Education”). Nordic govts gift their citizens with voucher-
    like education coupons. These vouchers can be redeemed for
    schooling anywhere, whether public schools, govt-run
    charter schools, or private schools.

    Acc. to the Inst. for the Study of Labor, this privatization
    of schooling “improved average educational performance both
    at the end of compulsory school & in the long run in terms
    of high school grades, university attendance, & years of
    schooling.” This school choice benefits the citizens, kids,
    & the future of the nations. Just as Turning Point USA
    promotes school choice, so do Nordic & Scandinavian nations.

    Socialists, however, are not the ones promoting free choice.

    Lastly, how it evolved: Nordic nations have not always been
    so progressive; in fact, they are beginning to take a step
    back. Until the 150s, Nordic countries were the top free-
    market, competition-based nations in the world. In the 70s,
    however, intense social govt & regulatory systems were put
    in place with high tax rates. All of the economic growth
    came to a sad end. For example, Sweden’s economic growth
    fell to 1% lower than the rest of Europe & 2% lower than

    By the 90s, govt spending was up to 70% of GDP, & the debt
    to GDP ratio accumulated to 80%. Even the unemployment
    rate rose 5%. As soon as policymakers saw this socialist
    makeover gone wrong, things changed. In 1991, legislatures
    privatized parts of health care, introduced schooling
    vouchers, & cut back on money-wasting welfare programs.
    Between 1995-2000, the debt-to-GDP ratio was cut by 40%, &
    citizens earned more income thanks to the new 28% income tax.

    Inflation and Taxes
    In fact, that tax was lowered to 22% in 2013. So countries
    like Sweden took an extremely progressive stance, realized
    it didn’t work, then converted to an even more free-market

    Why make the US learn for itself that socialism doesn’t
    work when we can simply trust Sweden’s experiment? The
    lesson learned is not what the Left teaches. Due to dereg-
    ulation, Sweden has actually exceeded economic growth
    compared to all other European peers by at least 1% per
    year. This is not a result of progressivism or socialism.
    It is the opposite.

    Progressives grossly overuse the comparison of Nordic
    nations to socialist ones, but the Nordics are actually a
    poor example because they practice a predominantly free
    market system. The only likeness between the two is the
    social programs. To add insult to injury, the Nordic
    economies don’t completely fall apart—& kill millions of
    people on the way down—like socialist systems do.

    So here’s why progressives claim this is a product of
    socialism: They need a good example. There are zero, none,
    no good examples of socialism—anywhere. As soon as a
    progressive system is somewhat close to—yet so far away
    from—a socialist state, progressives will take credit &
    proclaim it is socialism. They need something, anything,
    to justify their position & prove that socialism all-of-
    a-sudden works. The truth is: it doesn’t.

    No One Size Fits All
    And nations that try it end up destroying any advantage
    they had in the world & return to a system of freedom or
    suffer the consequences. Look at Venezuela: 1,600% inflation,
    -17% GDP growth, & 44% unemployment (expected in 2020).
    It's thru willful ignorance that opponents of capitalism
    continually propose this economic model but can’t tell the
    difference between an insolvent economy & a prosperous one.

    The Nordic model is not a be-all & end-all system. Neither
    is capitalism, nor socialism.

    Most economies develop, change, & become better over time.
    History is the best teacher for guidance in the evolution
    process. The left does not deserve to take credit for the
    glamours, the accomplishments, & the benefits of a free
    market system & slap the socialist sticker on it. They
    define Nordic & Scandinavian models as progressive, but
    this is no longer an argument of definition.

    This is about whether the left will stop lying to the
    American people & making socialism appear beneficial.
    Younger people in particular are prone to this rhetoric:
    Everything important to them is “free” under socialism,
    thanks to Bernie Sanders & others like him. The young do
    not know because they have not been told the consequences.

    It is time they were told the truth.


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  • From El Castor@21:1/5 to imbibe@mindspring.com on Wed Aug 25 12:43:25 2021
    Even during the Trump administration Sweden had a lower corporate tax
    rate than the United States. Ireland -- much lower than the US, and
    not coincidentally, 6,000 Apple employees in Ireland.

    BTW, David, I've said this before, your posts are good, but far too
    long. No one (probably not even you) will take the time to read them.
    Better to just state your thoughts and if you feel it necessary post
    brief excerpts and links that supports your thoughts. If someone
    disputes your position, follow up with more brief links.

    On Tue, 24 Aug 2021 23:59:54 -0700 (PDT), "(David P.)"
    <imbibe@mindspring.com> wrote:

    Nordic Economics Explained: The Difference Between
    Compassionate Capitalism and Socialism
    by David Bruining, July 13, 2019, fee dot org

    Compassionate capitalism: a better name for what Nordic
    countries practice. It is certainly true that Sweden,
    Finland, Norway, & Denmark have notable economic successes.
    It's certainly false that they have been achieved thru
    socialism. Nordic countries focus on combining a free
    market system with several social programs. >https://fee.org/articles/nordic-economics-explained-the-difference-between-compassionate-capitalism-and-socialism

    --- SoupGate-Win32 v1.05
    * Origin: fsxNet Usenet Gateway (21:1/5)