Should The U.S. Be More Like Denmark and Sweden?
Which Scandinavian country does Democrat politicians mostly refer to as having economic and welfare attributes the U.S. should emulate?
ChatGPT:
Democratic politicians in the U.S. most often point to Denmark and Sweden when talking about Scandinavian-style policies, but Denmark is the one mentioned the most frequently in speeches and debates.
Denmark is often cited because it combines a large welfare state with a highly competitive, market-friendly economy.
Democrats use it to counter the argument social welfare must harm growth: Denmark has universal healthcare, strong unions, free higher education, and generous unemployment benefits, yet still ranks high in business competitiveness and innovation.
In the 2016 presidential debates, for example, Bernie Sanders specifically praised Denmark’s system as a model.
Sweden is also invoked, especially regarding its strong welfare state, childcare support, and social equity policies.
However, Sweden is more often associated in American debates with its high taxes, which Republicans highlight critically.
See Figure 1 for OECD tax rates comparison.
Norway is less often referenced because much of its wealth comes from oil revenues.
Democrats sometimes mention it, but critics argue the U.S. cannot copy a system built on resource rents.
Summary:
Democratic politicians most often refer to Denmark as the Scandinavian country the U.S. should emulate, with Sweden also cited for its social welfare model.
Denmark is favored because it demonstrates that a generous welfare state can coexist with a thriving market economy.
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History of the economy of Denmark.
ChatGPT:
Here’s a history of Denmark’s economy, tracing its transformation from agrarian roots to today’s advanced, open-market system:
Agrarian Society (Pre-1800s)
For centuries, Denmark’s economy was based on subsistence agriculture.
The land reforms of the late 1700s redistributed farms from large estates to peasants, improving productivity and creating a strong class of small landholders.
Trade was modest, with grain, cattle, and dairy products forming the backbone of exports.
19th Century: Agricultural Modernization & Early Industry
Denmark industrialized late compared to Britain or Germany, but it modernized agriculture early.
Cooperatives became central to farming: dairy co-ops (butter, cheese) and pork co-ops dominated exports.
Export orientation: Britain became Denmark’s main customer for agricultural goods.
Early industries included brewing (Carlsberg, Tuborg) and shipbuilding.
Early 20th Century: Industrial Expansion
By 1900, agriculture still dominated, but manufacturing and trade were growing.
World War I disrupted trade, but Denmark profited from high demand for food exports.
Interwar period: Continued strength in farming, plus growth in machinery, textiles, and food processing.
Denmark pursued a neutral stance, avoiding destruction in both World Wars but facing shortages.
Post-WWII Golden Age (1945–1970s)
After WWII, Denmark experienced rapid growth like much of Western Europe.
Marshall Plan aid helped modernization.
Denmark joined the Organization for Economic Cooperation and Development (OECD) in 1961 and the EEC in 1973, (now EU), tying it to global markets.
Growth was fueled by exports, industrialization, and welfare state expansion.
The “Nordic model” developed: high taxes, universal social benefits, and labor-employer cooperation.
Economic Challenges (1970s–1980s)
Oil shocks and global competition hit Denmark hard.
High unemployment, inflation, and public debt strained the economy.
The krone currency faced instability, leading Denmark to tie it closely to the German mark and later the euro, though Denmark opted out of full euro adoption.
Reform and Recovery (1980s–1990s)
Economic reforms stabilized inflation and restored competitiveness.
Fiscal consolidation brought debt under control.
By the 1990s, Denmark had rebuilt its economy around flexible labor markets and welfare reforms, creating the “flexicurity” model: easy hiring/firing + strong social safety nets.
Modern Economy (2000s–Present)
Today Denmark is a high-income, export-oriented economy.
Key sectors: pharmaceuticals (Novo Nordisk), renewable energy (Ørsted, wind turbines), shipping (Maersk), design, and food products.
Global brands: LEGO, Carlsberg, Maersk, Novo Nordisk.
Strong focus on green energy: Denmark is a world leader in wind power.
Denmark consistently ranks high in competitiveness, innovation, and quality of life indexes.
Summary
Denmark’s economy evolved from a rural, agricultural base into a modern, diversified, export-driven economy.
Its transformation rested on:
Agricultural cooperatives as a foundation.
Industrial growth in the 20th century.
Postwar welfare state and EU integration.
Reforms in the 1980s–90s creating the “flexicurity” model.
Modern focus on green technology, pharmaceuticals, and global trade.
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Describe the agricultural cooperatives of Denmark in the 19th century.
ChatGPT:
Denmark’s cooperatives (Andelsbevægelsen) were one of the most distinctive features of its agricultural development and a key to its economic success. Here’s how they worked:
Origins and Growth
In the mid-to-late 19th century, Danish farmers faced stiff competition and falling grain prices.
Instead of competing individually, they organized cooperatives, “andels” in Danish, to pool resources and market their products more effectively.
The first major cooperative dairy was founded in 1882, and the model spread rapidly.
Dairy Cooperatives
Farmers contributed milk to a shared creamery, which processed it into butter and cheese.
The cooperative owned the equipment, buildings, and distribution networks.
Profits were distributed back to farmers based on the quantity of milk they supplied.
This system guaranteed fairness and gave small farmers access to the same technology as larger producers.
Danish butter became world-famous (especially the Lurpak brand, born from the cooperative movement).
Pork Cooperatives
Similarly, farmers formed slaughterhouse cooperatives to process pork.
By pooling resources, they built modern facilities and achieved economies of scale.
These pork co-ops coordinated exports, especially to Britain, where Danish bacon became a staple.
Cooperative Principles
Democratic control: Each farmer had one vote, regardless of how much they contributed.
Shared investment: Farmers collectively financed buildings and equipment.
Profit sharing: Returns were distributed proportionally to contributions, not ownership stakes.
Mutual support: Farmers benefited from shared knowledge, innovation, and risk reduction.
Economic Impact
The cooperative system transformed Denmark from a poor agrarian country into a leading exporter of high-quality agricultural goods by the early 20th century.
It also fostered a strong sense of social trust, equality, and community responsibility, which later influenced the broader Danish welfare model.
Many Danish global brands (like Arla Foods, a modern dairy giant) trace their origins to this cooperative movement.
Summary:
Danish agricultural cooperatives were farmer-owned, democratically run enterprises that pooled resources to process and market dairy and pork.
They gave small farmers equal access to modern technology, ensured fair distribution of profits, and built Denmark’s reputation as a world-class food exporter.
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Video: Why Not Be More Democratic-Socialistic As Is Sweden? - Johan Norberg
Transcript of video:
I live in one of the best countries on the planet, Sweden.
We tax and we spend and we have a huge government.
And we’re one of the world’s richest countries.
You should be more like us.
Dead wrong.
Sweden got rich first with free trade and an open economy before we had the big government.
In 1950 Sweden was already one of the world’s richest countries.
Back then taxes were lower in Sweden than in the United States.
Only then did we start expanding the government dramatically.
You know what happened then?
We started losing, from having been the fourth richest county in the world in 1970 to 25 years later in 1995 when we were only the 14th riches
No new jobs had been created in the private sector.
It all ended in a terrible crisis.
Since then Sweden has become successful again, but only after a new reform period, with more deregulation and freer trade than in other countries.
With lower taxes and school vouchers and partial privatization of the pension system.
Sure, Sweden is great, I love it here.
But, be careful so you imitate the stuff that brought us wealth and not the stuff that almost brought us ruin.
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