Saturday, November 26, 2005

The Myth of the Scandinavian Model

The Myth of the Scandinavian Model

Why are the Scandinavian countries doing such a bad job, despite their Protestant work ethic and devotion to duty? The main cause is the essence of the nanny state: its very high tax level. Between 1990 and 2005 the average overall tax burden was 55% in Finland, 58% in Denmark and 61% in Sweden. This is almost one and a half times the OECD average. The difference between the wealth destructive Scandinavian model and the booming Irish alternative is obvious for all to see. Strangely enough, however, the French and German governments do not seem to notice. Those in Belgium do not, either. The Belgian government recently proposed a new policy plan inspired by the Danish model. The tax level is not reduced, the fiscal burden is not being shifted from production to consumption, but instead from one production factor (labour) to another (capital) which is already overburdened. 2004 witnessed a record world economic growth of 5%. China and India are booming, the US and Japan are recovering. Gwartney’s findings explain why continental West European countries, such as Belgium, did not see their economies grow. The Belgian tax burden is 9% higher than the OECD average and 15% higher than the tax level in the US and Japan. If continental Western Europe does not change its policies, its relative impoverishment today will soon turn into absolute pauperization.

3 Comments:

At November 26, 2005 8:32 AM, Blogger ERYSICHTHON said...

You're so god damn right man!
As a scandinavian citizen I sometimes feel so god damn desperate and angry.
The tax system affects every aspect of
society, it is destroying us. In sweden for example, being young these days means you have to take state welfare and burden yourself with student loans to be able to do something else than lying around in bed all day. It needs to be spoken about more widely and recognised as the main factor in the destruction of scandinavian society that (in the case of sweden) has been going on since Olof Palme.

 
At November 28, 2005 1:09 PM, Blogger Solomon2 said...

You gotta kick your politician-bums out of office. Good luck - I have no idea how you can do it.

 
At November 29, 2005 9:38 PM, Blogger Paul said...

It would be nice if you gave proper credit to the original source at the brussels journal instead of making this sound like it is your original views

 

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