Denmark and Social Justice Capitalism

Hey Hey C....

Just thinking of you as I was reading about Mill and your comments outlining the dis-ease (contemporary division) between individual freedom and social redistribution.

"Society cannot have both individual freedom and social redistrubution because taking away from some to benefit others is considered a violation of individual rights."

I am reminded of Denmark (and all of Scandinavia actually) and enjoyed the Time article entitled, "Denmark's Difference - high taxes, a welfare state, strong unions: how an unlikely formula delivers for the Danes."

Having been in Denmark and more recently Norway, I could relate to the reality of the theme highlighted in this article.

With living standards among the highest in the world and per capita income slightly behind the U.S.A., it amazingly has been able to distribute it far more equitably. Denmark has its fair share of smallish, forward looking companies that are well positioned in high growth areas and currently ranks third by the WEF in most competitive enconomies in the world.

Amazingly it accomplishes this with the second highest tax rate in capitalist nations, only behind Sweden, which is just behind Denmark in the competitiveness rankings. They have a generous welfare state, heavily unionized labor force and a minimum of five paid weeks off per year.

They have all manners of business friendly policies - including low corporate tax rates, few restrictions on trade, and it is the easiest place in Europe to fire people. They have come to call their approach "flexicurity" and it includes beefed up job-retraining programs, social protections and unemployment benefits that last up to four years. They also have free education, free health care, and a flexible labor market that adjusts well to the challenges of globalization.

Perhaps their size and homogeneity - 5.4 million people, one tribe with a thousand year history, help. They are more like an enormous clan than a modern melting pot of immigrants. They are also known for their stubborn informality and disrespect for authority. I have experienced first hand on several occassions these rather charming traits and would pick Danes (and Swedes and Norweigans) on my team before almost any other nationality. With clear goals they take the ball and run with it when given freedom and flexibility.

"....the fact that Denmark has combined a dynamic economy with a tax burden almost double that of the US gives the lie to many economic arguments made over the past quarter-century. There's more than one way, it turns our, to be competitive." Amen!
Cheers to the Danes,
O'