The Nordic Model Isn’t as Socialist as Democratic Socialists Claim

Many democratic socialists in America claim that the path to their ideal utopia has already been paved and walked within the Scandinavian Nordic Model. Politicians like Mandami and AOC claim to be inspired by this “socialism” and use it as a guideline for their horrific policies and central planning. However, their “Nordic Model” actually serves as a perfect example as to why socialism fails.

Let’s begin by getting all the myths of the table. Scandinavia is not socialist; in fact, they are often ranked far higher than socialist economies like Venezuela in terms of economic freedom. The Scandinavian countries do however have a massive welfare state, but that does not make the Nordic Model a socialist model. Scandinavia prospered long before the rise of democratic socialism and has continued to prosper after its short-lived stint in the region. In fact, between 1870 and 1970 Sweden’s GDP grew faster than any other country in the world except Japan. Even after the “socialists” gained power in their respective parliaments, the markets still drove the economy and in more recent years the Scandinavian countries have voted away from socialism.

As the populations of Denmark, Sweden, and Norway age, the Nordic welfare state is becoming overwhelmed. In Sweden, for every one worker there are approximately 95 dependents and, in most provinces, dependents actually outnumber the workers. All while a new wealth tax scares away Norway’s richest businessmen, which only proves the failures of socialism and government expansion.

The Nordic Model is not some blueprint into how to build a socialist utopia; it is instead a prime example of how, under capitalism, the economy can be allowed to prosper and after just a couple decades, socialism can deteriorate everything. However, Scandinavia is still a market economy with very little regulations and, until recently, low, unprogressive, tax rates. With their market economy, Scandinavia has managed to be leaders in private banking and ease of doing business.

They are leaders in attracting capital, guaranteeing legal security, and private investment. And their welfare states are not indicative of progressive politics but rather a more laissez-faire approach to the economy. Nordic countries know very well that there cannot be a prospering welfare state without a prospering economy.

Nordic countries offer public education and welfare but not through coercion. Scandinavians have a choice between the bare minimum, state-run facilities and the innovative free market enterprises. The Nordic countries actually encourage private education through school vouchers instead of state run schools.

Denmark prospered economically in the late 19th century and early 20th century before the socialist took power and took credit for their prosperity. Even with a wave of socialist and interventionists throughout the mid to late 20th century, Denmark and the other Nordic countries managed to keep their welfare state based on free market elements and their interventions limited. Scandinavia boosts one of the most flexible labor markets in the world and has completely privatized telecommunications, electrical generation, some forests, and even postal services.

The Nordic countries prove only that there is no welfare state without a prospering private economy, that there is no tax base without economic growth, and there is no efficiency in the state without pure free market economics. This is why Scandinavia has rejected socialism in its entirety and opted instead for a mixed economy with low taxes and regulations. Nothing socialist is to be found in Scandinavia as the Nordic countries lead in the defense of private property, free enterprise, entrepreneurship, private banking, private postage, and a free job market.

Socialism is an economic theory defending state-run economics and overbloated welfare state and economies that stagnate because of this. If today’s economists and politicians should take anything from Scandinavia, it is that their new democratic socialism will never succeed without the economic incentives created with little to no government intervention, privatized sectors, low taxes, and competition with the welfare state from free market enterprises. Ironically, the Nordic Model—so often cited and praised by Mandami, AOC, and Bernie Sanders—actually stands as the greatest defense for the free market and the ultimate proof that democratic socialism fails the economy and its people while the free market stands as the greatest guarantor of economic prosperity.