Nordic America. The Effects of a Democratic Socialist Political Model on the United States. Emmanuel Ocampo

Transcription

1 Nordic America The Effects of a Democratic Socialist Political Model on the United States Emmanuel Ocampo The Global Studies and World Languages Academy at Tallwood High School

2 The Nordic Model in the United States 2 Table of Contents Introduction 3 Methodology 4 Limitation 5 Literature Review 6 Body 11 Conclusion 14 References 15 Appendix A 20 Appendix B 21

3 The Nordic Model in the United States 3 Introduction The Nordic Model is the one most prosperous political institutions because of its great success in the Scandinavian region in economics and social well being of citizens. The Nordic Model, which is a version of democratic socialism, can work in the United States, a country where there are some underlying aspects of socialism active in its government, but are ineffective because of its size. If the Nordic Model is to work in the United States, the American government and people must understand the concepts and important details of the Nordic Model which includes advanced social welfare programs and enhanced education. Certainly, some aspects will obviously not work in the United States, but parts of the Nordic Model such as the welfare programs could potentially supply the United States with vital assistance. This paper analyzes the potential that many Americans overlook in the Nordic Model and how it could be pivotal in the growing United States. The Nordic Model is a form of democratic socialism that has worked for more than seventy years in the Scandinavia region due to its. Certainly there will be critics of the Nordic Model, most notably in the United States where socialism in general is often viewed in a negative connotation because of a Cold War era mindset. However, aspects of the Nordic Model that deal with economics and social issues can be functional in the United States.

4 The Nordic Model in the United States 4 Methodology Data for my original research for the Nordic Model was obtained using the poll results from a survey of American students. The main form of my data collection was a survey. On the survey, three simple questions were asked. The questions were the following: Where is Scandinavia? Would Socialism work in the US? What is the Nordic Model? Eighty-four percent of the students that responded correctly chose the right answer- Northern Europe. This percentage gives the general idea that most students know the basic geography of Scandinavia. However, one can tell the obvious bias of whether or not Socialism is possible in the United States. A close percentage of those surveyed believed that Socialism can t work in the United States or were unsure if it could (40% and 43% respectively). This data shows that education is obviously needed in a typical high school student s government class. For example, Americans must be aware that the United States is in a way, a socialist government through everything from welfare to education. Education is important to remove the negative connotation Americans have on Socialism. If this was to happen, people would be more aware that Socialism is indeed form of government already instituted in the United States. In the final question about What is the Nordic Model, and overwhelming majority (91%) correctly answered the question. Despite this, the typical high school student has a general idea of the Nordic Model. In that sense, the idea of Socialism can be carefully crafted into American government classes to educate high school students.

5 The Nordic Model in the United States 5 Limitations In the two government systems (Scandinavia and the United States), there are some parts that will work. However, within the Nordic Model, each individual country holds its own individual difference. For example, the Danish control of basic utilities is more lax than that of Sweden. It would therefore be extremely difficult to determine how some parts of the Nordic Model will work if each country is individually, different. It is impossible to collect the effects of the Nordic Model on the entire Scandinavian area simply because it encompasses five different countries. All five countries have differences such as economic and political differences. The Gini Index, a measure of economic equality, is one of the methods used to determine the differences of the Nordic Countries. Lower numbers mean that the equality of the economy is extremely equal while higher numbers represent more inequality (Gini, 2014). Denmark, Finland, Sweden, Norway, and Iceland all have Gini ratings of 24.8, 26.8, 23,25, and 25 respectively. These numbers, which are some of the lowest in the world, show that there are still differences among the Scandinavian countries with the Nordic Model. This immigration begs the question Does the Nordic Model apply to them? One final limitation is that it is impossible to experience every Nordic government. I visited Norway and Denmark, but I did not grasp the full extent of the government because the trips were short. Therefore, it s impossible to experience the government in Finland, Iceland, and Sweden since I haven t visited those three countries. This limitation deters my chance for personal data gathering.

6 The Nordic Model in the United States 6 Literature Review Socialism seems to have a negative connotation in the United States. Despite the stigma it has in the United States, democratic socialism is highly effective in Scandinavia. Based off traditional Socialism, the Nordic Model, Scandinavia s main form of government, has allowed economic, political, and social prosperity in the five Nordic countries: Finland, Sweden, Norway, Denmark, and Iceland. All of these countries have won world wide accolades such as Finland having the best education system in the world (Choi, 2014) and Denmark being the happiest people on earth. In fact, all five of them rank in the top ten of the happiest countries in the world (Hetter, 2014). Pros of the Nordic Model The Nordic Model is an important example to use to model welfare systems. It is largely successful because each individual helps the entire nation based off equal opportunity thus everyone has equal opportunity to receive health care, education, and culture (Norden, 2014). In Denmark, all citizens have access to the same health, education, and economic systems (SiD, 2014). However, each country has a different form of welfare making any type of comparison extremely strenuous. For example, Norway s public sector is more active in the economy than most Nordic countries; however, Finland approaches social welfare through the private sector. Despite some differences, the Nordic Model has been largely successful due to its flexibility and ability to face new challenges. Scandinavia seems to have a balance of every aspect of Socialism, allowing it to be effective. However, the most successful reason to the Nordic Model is the family unit, which is the main characteristic of Scandinavia culture. This idea of family treats the entire country as a family. Through this idea of family, the Nordic Model has been successful because everyone watches out for everyone.

7 The Nordic Model in the United States 7 The Nordic Model has been a largely successful economic model, such that it is in competing with economies like the United States, China, and the United Kingdom primarily through standards of living. The five Nordic countries claim spots in the top 30 of the Human Development Index (see Appendix A). According to Daniel Sachs of the Globalist, much of the criticism against the Nordic Model comes from the high tax rates. Despite the criticism, Sachs states that because of the Nordic Model s idea of no person left behind is the main reason of success. Sachs states that the Nordic people want to pay higher taxes if they see it benefits the people as a whole. The Scandinavian region is open to globalization which has had a large impact of its economy. For example, Denmark saw a shift to a more open economy that opened to Germany, China, and the United States. This can be again related to the idea of trust in the region. The Scandinavians are possibly the most trustworthy people on this planet, states Sachs. Because of this trust, the people are able to depend on each other for everything resulting in no person left behind. The idea of social solidarity, a belief similar to the no person left behind theory is perhaps the overarching reason for Scandinavian success. Senator Bernie Sanders of Vermont concluded that many Americans envy the Danish quality of life. Danish life is largely dependent on high taxes that ensure no person falls into economic hardship. The success of Danish welfare can be determined by the fact that Denmark is a homogenous population of 5.5 million people. With this large common effect combined with high taxes, Danes have an extremely low unemployment rate, and wages are twice that of the United States, health care is universal and anyone who cannot take care of themselves receives approximately one hundred US dollars a day. In relation to health, the Danes receive low cost medicine, free hospital services, and low cost doctors while only spending 11% of its GDP on health versus the United States 18%.

8 The Nordic Model in the United States 8 These articles largely identify the benefits by stating that social solidarity and trust are the main reasons for the successes of Scandinavia. However, there are articles also indentify the differences among the five countries. Cons of the Nordic Model According to Nordens.org, the main issue of the Nordic Model is liberalism interfering with the social growth of the Nordic Model. Because of Iceland s isolation from the rest of Scandinavia, American liberalism has had a faster impact on the people of Iceland. Despite this, it does identify a specific problem with Icelandic individualism. It is highly unusual for such a Nordic country to have such a high form of individualism, despite many of the countries people relying on each other. The Icelandic Bank Crisis of 2008 was largely attributed to individualism because individual companies and bankers were investing on personal interests. There are several arguments against the Nordic Model. The biggest counterargument to the Nordic Model is the high tax rate stated by Mcwhinney. Though the high tax benefits the people as a whole, the income of the individual cannot cover personal expenses. Personal spending in Scandinavian region ix extremely low compared to other countries. Another reason for the inefficiency of the Nordic Model is its availability to immigrants. Based on their laws, all the Nordic countries have some type of immigration policy that allows immigrants to freely enter their country. The influx of immigrants takes a toll on the economy because those immigrants are all of a sudden part of the welfare system in each country. The countries have a legal obligation to provide for the immigrants resulting in a disdain of immigrants in all countries and an economic burden of the economy of the Nordic countries. Most of the immigrants are refugees from war torn countries such as Somalia and Sudan. For example, immigration is taking a toll on

9 The Nordic Model in the United States 9 Norway as more than 34,000 asylum seekers and refugees stream into the country taking a toll on the welfare model that is in place stated by the UDI of Norway. In fact, Norway has the largest influx of immigration into the country because of Norway s lenient immigration policy. Education The quality of education is perhaps the aspect of the Nordic Model that makes it unique. The Nordic school systems particularly Finland are the best in the world primarily due to the countries focus on individuals rather than the test (See Appendix B). Finland s education system is largely successful due to the fact that education is focused more on the individual (Abrams, 2011). Finland takes its time to develop the child by implementing long recesses and focus on arts and crafts. The United States focuses more on quantity rather than quality of education. In Abram s article, for example, the United States employs teachers on a large scale usually requiring minimal experience; however in Finland, teachers are required to have master s degrees and are meticulously interviewed by the Finnish school board to ensure teachers are the best. Abram s article seems to create a distinct bias between Finland and the United States, obviously because the article highlights the benefits of the Finnish education system and the bad traits of the American education system.

10 The Nordic Model in the United States 10 Economics The Nordic Model is defined as a subset of democratic socialism. Mitchell states that the economics of the Nordic Model has led to huge success in Scandinavia because it is a combination of capitalism and socialism. The entire article is generally neutral on both the United States and Nordic economic systems.. In Scandinavia, 48% of the economy of the region as a whole comes from the public sector versus to the United States 37%. It s obvious that the easy, fallback choice of comparing the Nordic Model to Socialism has faltered. The new Nordic Model is a fantastic example of modern day mixed economy. The Nordic countries have everything from low trade barriers to little government interference allowing the economies of the Scandinavian region to flourish.

11 The Nordic Model in the United States 11 Body Generally, those who visit the Scandinavian region tend to praise the Nordic Model because of its success in the region particularly in its high quality of life (see Appendix A). Democratic socialism, which is the base of the Nordic Model, is also the premise of the government of the United States. Despite this fact, many people still choose to downplay the socialism in general simply because of the long stigma against socialism in the United States. However, democratic socialism will work in the United States to a certain extent based on population, ethnicity, and similar traits (Sanders, 2008). Obviously, the United States, with its diverse three hundred million citizens, cannot implement the Nordic Model, the way Denmark with its homogenous five million citizens implements the Nordic Model. Because of the homogeneity in the Nordic countries, the governments are able to effectively provide its citizens basic welfare. The main reason on why the Nordic Model is successful is not only the low population size, but also the trust the people have with each other (Sanders, 2008). This is due to the relatively small populations of the Nordic countries to the United States. The amount of cleavages in the United States disrupts the effectiveness of the Nordic Model because each cleavage has its own opinions, and often times there is a plethora of conflicting interests. Perhaps the success of the Nordic countries is not just its solidarity within the population, but also taxes on both public and private corporations. Contrary to popular belief that Nordic countries are wealthy due to their taxes, their success is much more complex than that. Much of the money comes from the economic competition between the private and public sectors of the economy.

12 The Nordic Model in the United States 12 Model: The Economist indentified the following examples on the success of the Nordic It [Denmark] also allows parents to send children to private schools at public expense and make up the difference in cost with their own money. Finland is harnessing the skills of venture capitalists and angel investors to promote innovation and entrepreneurship. Oil-rich Norway is a partial exception to this pattern, but even there the government is preparing for its post-oil future. The common denominator among the Nordic countries is a mix of democratic socialism and capitalism. The government control of basic industries combined with the influence of private entrepreneurship has created a diverse economic system that obviously benefits those of the Scandinavian region. A mixed capitalist and socialist economy would be effective in establishing the Nordic Model in the United States. Due to the large amounts of private corporations and infrastructure that is provided by the government, a mixed economy can work efficiently. To make this possible, the government must control the basic functions, such as energy and water, while letting private corporations to operate freely within the borders. In Denmark, this has allowed an efficient system of economic well being because the government takes care of its citizens (Sanders, 2008). The United States operates on the same basic welfare principles of the Nordic Model and Scandinavia. Compared to the Nordic countries, the GDP per capita spent on welfare is far higher than that of the United State (Koltkin, 2013). Collectively, all five countries in Scandinavia add up to about twenty six million people, barely the population of Texas. In addition, all the Scandinavian countries have a population that is at least 92% homogenous to

13 The Nordic Model in the United States 13 their respective country (CIA Fact book). Because of their homogeneity, the Nordic countries are able to have a unified sense of nationalism without too many coinciding cleavages which means that welfare programs can be effectively conducted because of the collective sensibility (Norden, 2012). Obviously, the United States lacks a not only homogenous population, but also the small population (Thirteen Scandinavians will be needed to reach the population of the United States). Despite this inconvenience, an innovative way to conduct a form of the Nordic Model is to make the federal government capitalist, but allow the individual states to operate on a democratic socialist system. Because states are smaller, the fluidity of the Nordic Model in the United States can be successful. The smaller populations also mean that social welfare programs are able to operate smoothly because the control over the people is easier to handle.

14 The Nordic Model in the United States 14 Conclusion The Nordic Model has been successful since the years after World War II. It provides its citizens adequate welfare, education, and political freedom. The Nordic Model has allowed the Scandinavian countries to function well. The United States could implement this economic model because it is effective in handling the use of government resources and conserves the economic power of the US. If it were to be implemented, there would be increase in quality of life and standards of living.

15 The Nordic Model in the United States 15 References Abrams, S. E. (2011, January 28). The children must play. Retrieved November 5, 2014, from US?page=0%2C1 The article identifies the main reason why Nordic Education is extremely effective. It uses Finalnd, the best Nordic country for education, as a comparison to the United States. Analysi, F. A. (2012). UDI immigration Migration Retrieved December 3, 2014, from The UDI measures the amounts of immigration into the Nordic countries. The facts and figures allow an accurate analysis of immigration flow into the country. This proper analysis allows my readers to understand the extent of immigration in Scandinavia. Andersen, T. M. (2007). The Nordic model: Embracing globalization and sharing risks. Helsinki: Taloustieto Oy. This article describes the economic condition of the Nordic model. It analyes trends in the economic history of the 5 Nordic countries. It then describes how this economic model can be used in other countries. Choi, A. S. (2014, September 04). What the best education systems are doing right. Retrieved December 3, 2014, from

16 The Nordic Model in the United States 16 This article provides the reasons on why the Finnish education is so successful. From the article, one can clearly see that focusing not just on schooling but also outside activities can help with education. This article gives in depth analysis on the overarching theme in Scandinavian education. Christiensen, N., Petersen, K., Edling, N., & Haave, P. (n.d.). Nordel Model of Welfare: A Historical Reappraisal. Copenhagen, VA: Museum Tusculanum Press. Describes the Summary, history, and impact of the Nordic Model not just o the Nordic countries but world wide. The authors describe the conditions that set the tone for the creation of the Nordic Model Welfare state. The book also compares all five countries of Scandinavia. The Economist. (2013, February 02). The next supermodel. Retrieved September 24, 2014, from Praises the Nordic model for possibly being the next major system of social and political welfare. It identifies the best aspects of the Nordic Model-Economics and Education. However it also highlights some of the key problems facing the system. The Economist. (2013, February 02). Northern lights. Retrieved October 1, 2014, from This article analyzes the economic power to the Nordic Model, particularly in Sweden. It uses past economic models and compares it to the success that the Nordic Model has.

17 The Nordic Model in the United States 17 Equlity Now. (n.d.). WHAT IS THE NORDIC MODEL? Retrieved September 28, 2014, from This article describes the weaknesses and failure of the Nordic Model especially on human trafficking and terrorism. The Nordic Model's immigration policy allows immigration to flow into the country much easily than the US. It creates domestic and external problems to the Nordic Region. Hetter, K. (2014, March 21). Get happy in the world's happiest countries. Retrieved December 3, 2014, from http%3a%2f%2fwww.cnn.com%2f2014%2f03%2f20%2ftravel%2fhappiestcountries-to-visit%2f This article highlights the main accolade of Nordic countries (happiness). Happiness is high in these countries because there is an overall trust among the people and the government provides many services and goods to the people. Kenworthy, L. (2014). Social democratic America. Oxford: Oxford University Press. Retrieved October 2, 2014, from This article discusses the benefits of living under a socialist democratic state. It uses the Nordic Model effectivley to make a comparsion of the US to Scandinavia. Kotkin, J. (2013, July 29). Should Uncle Sam Chase a Scandinavian Model? Retrieved November 3, 2014, from

18 The Nordic Model in the United States 18 Analyzes the usefulness of Scandinavian economics on the United States. The article generally compares the two economic systems and describes the mixed economy system of the Scandinavian countries McWhinney, J. (2014, October 07). The Nordic Model: Pros and Cons. Retrieved October 14, 2014, from Identifies the pros and cons of the Nordic Model. It also applies the best aspects to the United States. It analyzes the history of Scandinavia to effectivley compare the US and Scandinavia Mitchell, D. J. (2007, November 5). What Can the United States Learn from the Nordic Model? Identifies the aspects of the Nordic Model the US could adopt. It analyzes the main reasons for success in Nordic countries and how it can be applied to the United States. The Nordic Council. (2014, September 24). The Nordic Welfare Model. Retrieved from Retrieved November 23, 2014, from Describes the Nordic Model from the point of the Nordic countries and each individual country's success. It comes from the Norden, which is an independent group that analyzes the governments of each country in Scandinavia.

19 The Nordic Model in the United States 19 Sachs, D. (2012, May 28). The Nordic Model's Economic Appeal - The Globalist. Retrieved from Highlights the proven successes of the Nordic Model. However, it only identifies successes and only uses Sweden as a prime example rather than identifying all the Nordic Countries. Sanders, B. (2013, May 26). What Can We Learn From Denmark? Retrieved September 24, 2014, from Discusses, from Senator Bernie Sanders, the reason why a socialist democracy would work in the US. He heavily uses Denmark as a case study to compare socialist democracy to democracy. Smirniotopoulos, P. (2008, December 06). Is the U.S. Capitalist, Socialist or Something Inbetween? Retrieved November 21, 2014, from This article compares the capitalist economy of the US to the socialist economy of Scandinavia. It highlights some of the similarities of the two economic models. However, it also identifies why the capitalist system is not effective in the US.

20 The Nordic Model in the United States 20 Appendix A: The Human Development Index Human Development Index Note: Countries in dark blue have a high HDI Countries in lighter colors have a lower HDI

21 The Nordic Model in the United States 21 Appendix B: Subject Skills Subject Skills Compared to the US