Last year Denmark was ranked the happiest country in world. This year Denmark is ranked the second happiest country in the world topped only by Norway. They are both successful high tax, very good social safety net (universal healthcare, unemployment compensation, retraining, free or affordable higher education, etc.) countries. They are both democratic.
Denmark and other Scandinavian countries weathered the 2008 Great Depression better than most of Europe and the United States. They did this even with what Americans would consider a bloated public sector.
Many will argue that these countries are small in comparison to the US and as such it is not a good comparison. Many will argue that the wealth from North Sea Oil reserves is partly the reason. Many will argue that because these countries are strong welfare states that they are less competitive.
The reality is Americans have been lied to or allowed to wallow in their own ignorance. They have been taught to believe fallacies that counter one’s intuition. Once this indoctrination is complete, change towards progress is non-existent or painfully slow.
If one is to believe in the economy of scale, America’s size makes efficiency even more possible than in these small countries. America is extremely rich with natural resources, not only oil. The problem is that it is distributed unfairly among the few that ‘stole’ it or bought it on the cheap (e.g.,25 families own 1% of all land and the resources of that land in America).
Denmark and other Scandinavian countries’ with strong social safety nets have not made them less competitive. In fact they are way at the top of the list with the United States. Most other countries at the top have strong social safety nets as well. As a society they care more for the social, economic, and health well-being of their fellow citizens than America.
One of the reasons Denmark and other Scandinavian countries with strong social safety nets weathered the Great Recession better is that they had a built in stimulus. In America when one loses a job, they get unemployment for a short time (this recession was an exception). That unemployment is much less than wages and runs out quickly. That means the contribution to the economy by that laid off worker makes a recession much worse as much less money is entered into the economy. In countries with strong safety nets, workers get up to 90% of their wages. As such the economic shock from unemployment is mitigated till the economy’s ‘overstock’ is mitigated until increased employment is required.
In America we are encouraged to disregard logic and obvious reality for the sake of ideology. The ideology is present to maintain not only a status quo, but a country where only a select few will ever have the opportunity to be wealthy. It is a ‘me first’ and selfish ideology. It is an ideology where wealth is built on the backs of the middle class and the poor, Class Warfare.
Independent Senator Bernie Sander’s letter below on Denmark is probative.
What Can We Learn From Denmark?
Senator Bernie Sanders – Independent U. S. Senator From Vermont
Danish Ambassador Peter Taksoe-Jensen spent a weekend in Vermont this month traveling with me to town meetings in Burlington, Brattleboro and Montpelier. Large crowds came out to learn about a social system very different from our own which provides extraordinary security and opportunity for the people of Denmark.
Today in the United States there is a massive amount of economic anxiety. Unemployment is much too high, wages and income are too low, millions of Americans are struggling to find affordable health care and the gap between the very rich and everyone else is growing wider.
While young working families search desperately for affordable child care, older Americans worry about how they can retire with dignity. Many of our people are physically exhausted as they work the longest hours of any industrialized country and have far less paid vacation time than other major countries
Denmark is a small, homogenous nation of about 5.5 million people. The United States is a melting pot of more than 315 million people. No question about it, Denmark and the United States are very different countries. Nonetheless, are there lessons that we can learn from Denmark?
In Denmark, social policy in areas like health care, child care, education and protecting the unemployed are part of a “solidarity system” that makes sure that almost no one falls into economic despair. Danes pay very high taxes, but in return enjoy a quality of life that many Americans would find hard to believe. As the ambassador mentioned, while it is difficult to become very rich in Denmark no one is allowed to be poor. The minimum wage in Denmark is about twice that of the United States and people who are totally out of the labor market or unable to care for themselves have a basic income guarantee of about $100 per day.
Health care in Denmark is universal, free of charge and high quality. Everybody is covered as a right of citizenship. The Danish health care system is popular, with patient satisfaction much higher than in our country. In Denmark, every citizen can choose a doctor in their area. Prescription drugs are inexpensive and free for those under 18 years of age. Interestingly, despite their universal coverage, the Danish health care system is far more cost-effective than ours. They spend about 11 percent of their GDP on health care. We spend almost 18 percent.
When it comes to raising families, Danes understand that the first few years of a person’s life are the most important in terms of intellectual and emotional development. In order to give strong support to expecting parents, mothers get four weeks of paid leave before giving birth. They get another 14 weeks afterward. Expecting fathers get two paid weeks off, and both parents have the right to 32 more weeks of leave during the first nine years of a child’s life. The state covers three-quarters of the cost of child care, more for lower-income workers.
At a time when college education in the United States is increasingly unaffordable and the average college graduate leaves school more than $25,000 in debt, virtually all higher education in Denmark is free. That includes not just college but graduate schools as well, including medical school.
In a volatile global economy, the Danish government recognizes that it must invest heavily in training programs so workers can learn new skills to meet changing workforce demands. It also understands that when people lose their jobs they must have adequate income while they search for new jobs. If a worker loses his or her job in Denmark, unemployment insurance covers up to 90 percent of earnings for as long as two years. Here benefits can be cut off after as few as 26 weeks.
In Denmark, adequate leisure a==nd family time are considered an important part of having a good life. Every worker in Denmark is entitled to five weeks of paid vacation plus 11 paid holidays. The United States is the only major country that does not guarantee its workers paid vacation time. The result is that fewer than half of lower-paid hourly wage workers in our country receive any paid vacation days.
Recently the Organization for Economic Cooperation and Development (OECD) found that the Danish people rank among the happiest in the world among some 40 countries that were studied. America did not crack the top 10.
As Ambassador Taksoe-Jensen explained, the Danish social model did not develop overnight. It has evolved over many decades and, in general, has the political support of all parties across the political spectrum. One of the reasons for that may be that the Danes are, politically and economically, a very engaged and informed people. In their last election, which lasted all of three weeks and had no TV ads, 89 percent of Danes voted.
In Denmark, more than 75 percent of the people are members of trade unions. In America today, as a result of the political and economic power of corporate America and the billionaire class, we are seeing a sustained and brutal attack against the economic well-being of the American worker. As the middle class disappears, benefits and guarantees that workers have secured over the last century are now on the chopping block. Republicans, and too many Democrats, are supporting cuts in Social Security, Medicare, Medicaid, nutrition, education, and other basic needs — at the same time as the very rich become much richer. Workers’ rights, the ability to organize unions, and the very existence of the National Labor Relations Board (NLRB) are now under massive assault.
In the U.S. Senate today, my right-wing colleagues talk a lot about “freedom” and limiting the size of government. Here’s what they really mean.
They want ordinary Americans to have the freedom NOT to have health care in a country where 45,000 of our people who die each year because they don’t get to a doctor when they should. They want young people in our country to have the freedom NOT to go to college, and join the 400,000 young Americans unable to afford a higher education and the millions struggling with huge college debts. They want children and seniors in our country to have the freedom NOT to have enough food to eat, and join the many millions who are already hungry. And on and on it goes!
In Denmark, there is a very different understanding of what “freedom” means. In that country, they have gone a long way to ending the enormous anxieties that comes with economic insecurity. Instead of promoting a system which allows a few to have enormous wealth, they have developed a system which guarantees a strong minimal standard of living to all — including the children, the elderly and the disabled.
The United States, in size, culture, and the diversity of our population, is a very different country from Denmark. Can we, however, learn some important lessons from them? You bet we can.
Originally Posted At Huffington Post: http://huff.to/1an8O5u