Myth — Countries Like Denmark Show That Socialism Works
The success of Nordic countries is based on the fact that historically they have relied on free-markets and protection of private property. The only exception is a short period in Sweden (see myth #2) wherein socialist policies crippled growth and job creation. Nordic nations do have high taxes and generous welfare, but in many other regards they have unusually free markets.
You don’t have to take this from me, just listen to Danish prime minister, Lars Løkke Rasmussen. After seeing his country held up as an example in the American presidential debate, he felt obliged to tell student in a 2015 speech at Harvard’s Kennedy School of Government, “I know that some people in the U.S. associate the Nordic model with some sort of socialism. Therefore I would like to make one thing clear. Denmark is far from a socialist planned economy. Denmark is a market economy.”
A quick glance at the latest country ranking in the Index of Economic Freedom confirms that Rasmussen is right, and that the American left are wrong in viewing Denmark as their prime example of socialism. Denmark has only a marginally lower economic freedom score than the US — in last year’s ranking, Denmark was marginally ahead of the US. That’s because Denmark, like the other Nordic countries, compensates for a large public sectors by having market-oriented policies in other fields.
When it comes to areas such as business regulations, trade policy, investment freedom, vouchers in the provision of education, elderly care and health care, and partial privatization of retirement savings, Nordic countries are among the most free-market in the world. In fact, in these areas, the US has a lot to learn from Denmark and the other Nordic countries.
(By Nima Sanandaji - 5 Myths About Nordic Socialism Peddled By the Left)