Friday, August 17, 2018

Krugman on Denmark's social democracy

Good article on the benefits of Denmark's social structure. They've embraced a large government dedicated to enhancing their people's lives. Public spending is more than half their GDP.  Nearly two-thirds of their labor force is unionized. Krugman compares their lifestyle with America.

"Danes are more likely to have jobs than Americans, and in many cases they earn substantially more. Overall G.D.P. per capita in Denmark is a bit lower than in America, but that’s basically because the Danes take more vacations. Income inequality is much lower, and life expectancy is higher."

He shows the difference between straight socialism, wherein the government owns the means of production, with the type of social democracy they have, which is "a market economy where the downsides of capitalism are mitigated by government action, including a very strong social safety net."

He concludes that if we want a more humane and prosperous society for all then we need these sort of policies, whatever you call them.

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