Medium reports on the hard truth about European style socialism, and specifically on Denmark, which Bernie Sanders and Hillary Clinton have used as a potential model for American style Democratic Socialism:
Dear American voter –
Allow me to inform you,
Denmark is not the paradise Bernie Sanders suggests. In fact, Denmark is in trouble.
Denmark used to be a very rich country ranking in the top five for several decades. No more.
Denmark now ranks about 20 in the world. Still good, but far from excellent. Denmark has a huge public sector and among the highest if not the highest tax rate in the world.
This, unfortunately, leads to very poor growth. Super-sized government saps the private sector of means to invest. Therefore, Denmark ranks very low on economic growth.
Denmark ranking 192 out of 219 countries world-wide on economic growth. That’s not impressive.
And this tells us that Denmark is getting poorer and that even the aforementioned rank 20 on the rich countries’ list will be difficult to hang on to in the future.
For the Danish people it is worse still. The very high tax rates ensure that lending money is pretty much the only recourse for people wanting to own their house.
As you can see the Danes have more household debt than people from any other nation. So when taxes and mortgage are paid not much is left for consumption.
And thats really tough in a country with some of the highest prices anywhere in the world:
Consumer goods end services are very expensive in Denmark. So in reality, the Danes are not that well off compared with citizens of many other developed nations.
If you look at luxury goods like a car, for example — yes, in Denmark a car is considered a luxury — the prices are even higher due to extra taxes.
So, many people in Denmark cannot afford a car and public transportation is expensive (no, Sanders, not everything is “free” in Denmark) and inefficient.