171. What Can the United States Learn from the Nordic Model?
- Author:
- Daniel Mitchell
- Publication Date:
- 11-2007
- Content Type:
- Policy Brief
- Institution:
- The Cato Institute
- Abstract:
- Some policymakers in the United States and Europe argue that it is possible to enjoy economic growth and also have a large welfare state. These advocates for bigger government claim that the so- called Nordic Model offers the best of both worlds. This claim does not withstand scrutiny. Economic performance in Nordic nations is lagging, and excessive government is the most likely explanation. The public sector in Sweden, Denmark, Norway, Finland, and Iceland consumes, on average, more than 48 percent of economic output. Total government outlays in the United States, by contrast, are less than 37 percent of gross domes- tic product. Revenue comparisons are even more striking. Tax receipts average more than 45 per- cent of GDP in Nordic nations, a full 20 percent- age points higher than the aggregate tax burden in the United States.
- Topic:
- Economics and Government
- Political Geography:
- United States and Europe