That lower G.D.P. number conceals two important points. First, by any measure people in the lower part of the income distribution are much better off in Nordic societies than their U.S. counterparts. That is, there is a lot less misery in Scandinavia — and because everyone has some chance of falling into low income, this reduces the risk of misery for a much larger share of the population
Second, much of the gap in real G.D.P. represents a choice, not a cost. Nordic workers have much more vacation, much more time for family and leisure, than their counterparts in our “no vacation nation.”
.. They aren’t “socialist,” if that means government control of the means of production. They are, however, quite strongly social-democratic: as Exhibit 1 shows, they have high taxes, which finance much more generous social benefits than we have here. They also have policies on wages, working hours, and more that tilt the balance toward workers in a number of dimensions.
.. Clearly, the Nordic economies are better for lower-income families — roughly the bottom 30 percent of the population.
.. But this understates the case, because these data don’t include “in kind” benefits like health care and education. All of the Nordic countries have universal health care — not just single-payer, but for the most part direct government provision (a.k.a. “socialized medicine.”)
Nordic education also lacks the glaring inequality in quality all too characteristic of the U.S. system.
.. Once you take these benefits into account, it’s likely that at least half the Nordic population are better off materially than their U.S. counterparts. But what about the upper half?
.. a large part of the difference — in the case of Denmark, more than all of it — comes from a lower number of hours worked annually per worker. This does not reflect mass underemployment. Instead, it reflects policy: all of the Nordic countries require that employers give workers a minimum of 25 days of paid vacation every year, while the U.S. has no leave policy at all.
.. Once you take vacations into account, Denmark and Sweden basically look comparable in performance to the U.S.
.. The point for welfare comparisons is that while Nordic families at, say, the 60th percentile of the income distribution have lower purchasing power than their American counterparts, they also have much more free time and an arguably better work-life balance. Are they really worse off? You can make a good case that taking all of this into account, the majority of Nordic citizens are actually better off than Americans.
.. The O.E.C.D. publishes measures of self-reported “life satisfaction”; all of the Nordic nations rank above the U.S. Objective measures like life expectancy and mortality rates are also much better in Scandinavia.
a magnetic 38-year-old named Christian Lindner, has openly expressed a desire to shake things up. In an August interview with the Economist, in which he called Germany’s economy “a prosperity hallucination,” Lindner also explained that in his country, “entrepreneurship has long been undervalued … and societies that are prepared to be more daring and have efficient capital markets have overtaken us on this.”
.. The vast majority of Germans don’t want it. For progressive and even centrist Germans, the startup-style definition of Erfolg (or “success”) is utterly incompatible with their values—which do not center on individual wealth, recognition, or even careers.
.. Germany’s cultural mores—which include a vehement defense of the country’s robust social safety net, largely credited for the relatively quick recovery from last decade’s recession—mean it is largely inoculated from the bootstrap fever that has long gripped the US.
.. In an off-script response to a heckler during a speech about startup culture’s positive attitude toward failure, Lindner memorably decried the fact that “people would rather go into public service than start something themselves.” He explained that, “when you’re successful, you end up in the sights of the social-democratic redistribution apparatus, and when you fail you’re sure to be the subject of mockery and derision.”
Lindner was correct on one point: Many Germans would rather go into public service than start a business themselves. But his theory about their motivation is all wrong. Lindner’s country-people simply don’t have the same enchantment with self-made financial success that he does.
.. Thanks in part to a general leftward tilt on economic issues after the student revolutions of 1968, most of them view the collective good, and the comparatively high taxation that accompanies it not as a sacrifice, but as a fundamental component of civilized society.
.. They are largely content with their take-home salaries, but not out of altruism. Rather, they view the role of wealth acquisition and consumerism in a fundamentally different way.
.. To Germans, caution and frugality are signifiers of great moral character. Sure, they favor high-quality consumer goods—but they deliberate on what to buy for years, and expect their possessions to last for decades
.. Moreover, for Germans, a good work-life balance does not involve unlimited massages and free meals on the corporate campus to encourage 90-hour weeks. Germans not only work 35 hours a week on average—they’re the kind of people who might decide to commute by swimming, simply because it brings them joy.
.. And a German wouldn’t be caught tot pounding down a bar or a glass of Soylent to replace a meal
.. just as Christian Lindner is obsessed with making money and driving sports cars, so have Germans been obsessed with making fun of Christian Lindner because they find his thirst for financial success so gauche.
What did President Vladimir V. Putin of Russia do on his summer vacation?
He took a fishing and mushroom-hunting trip to Siberia, where the Kremlin allowed photos to be taken of the president while in action mode (and at rest). Shirts were optional attire during much of his visit.