Presidential candidate Bernie Sanders has repeatedly praised the socialism-based political
and economic system of Denmark.
Sanders himself is running on democratic socialism, with the promise that it’ll dramatically
improve the United States, just like in Denmark.
But IS Denmark really some sort of socialist utopia?
Well, not at first.
During the 1930s Great Depression, Denmark was struggling.
Exports fell and unemployment went through the roof.
In 1933, the Danish prime minister signed an agreement to establish state welfare services,
in an effort to help struggling citizens.
Today, Denmark is still by and large a social democracy.
So, what does that mean exactly?
Well, social democracy is a limited form of socialism.
It differs from outright socialism in that workers do not own the means of production.
Under such a system, sometimes referred to as the “Nordic model,” businesses are
not nationalized and private competition is encouraged.
Still, it isn’t a totally free market.
There are strict governmental regulations and an emphasis on social equality through
a progressive tax rate and social services.
In other words, Social Democracy is capitalism for those who are doing well, and socialism
for those who need help.
As a result, Denmark has been considered the happiest country in the world in recent years,
although in 2015 they were surpassed by Switzerland.
They have the 5th highest GDP per capita in the world, an average life expectancy that’s
ten years higher than the world average, and one of the least corrupt, and most transparent
governments on earth.
But, many point to Denmark’s high tax rate of up to 56%, which they say discourages entrepreneurship
and innovation.
There are also anxieties about welfare abuse, with about 9% of the nation’s workforce
on lifetime disability benefits.
Not to mention the worrisome shift in demographics—an aging population adds to the collective burden,
while the number of workers paying into the system decreases.
Denmark certainly has its flaws, as does democratic socialism.
Denmark is one of the richest, most transparent, and happiest countries on earth, but is supported
through extremely high taxation.
While many disagree with their methods, it is hard to argue with their nearly utopian
results.
.
As we mentioned, democratic socialism is a derivative of socialism, which in theory means
that the people control the means of production.
Learn more about the nuances and misconceptions about socialism in our video.
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