Well, living in the heart of Western Europe's social democracy, the difference between liberal market (US) and a coordinated market system (several European economies) is abundantly clear. Denmark is especially interesting because it is probably more market than Sweden or Norway. It has what it proudly calls flexisecure employment system, meaning firing is possible in the private sector (public sector also but there are layers of unions that if not eliminate certainly defers the outcome), but one that is backed by the state in terms of unemployment benefits. So (and I may have said this earlier) firms use labor tightly knowing fully well that the workers it may not hire or fire are being looked after by the state.
So what are the signs of social democracy (despite certain flaws)? free education through university; free day care; heavily subsidized after school programs; free health care (there are some things you may have to pay such as certain dental services) and there is creeping dual health care system with private providers though it is being resisted; very high income taxes (so low personal savings but then what else do you need it for except for vacations during the long dreary winters); the tax rates vary by income but beyond some small minimum it can be as high as 60% hence generally a real disincentive for people not to seek extra income, so they have it generally easy; (incidentally I am on a lower tax rate for the first three years, a way to attract foreign professionals to Denmark) but we have been warned of the high tax rate kicking in and thus banks are willing to lend us a sum of money that will get us a very modest but nice place compared to what I had in low-cost Tacoma. Currently I pay three and half times my US mortgage rate as rent in an expensive area! I have no real savings. But I save 17.1% as my pension, one third of which I pay. Sales tax (which is in the final price, unlike in the US where it is price plus tax) is 25%. Each quarter my wife (not me) gets about $1000 for our two children, just like that, no questions asked. All she has to have is registration number and a bank account. Incidentally the registration card gives you all the free health etc. and access to the public library. I suppose these features are certainly a part of social democracy under capitalism. Cheers, Anthony xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx Anthony P. D'Costa Professor of Indian Studies Asia Research Centre Copenhagen Business School Porcelænshaven 24, 3 DK-2000 Frederiksberg, Denmark Email:[EMAIL PROTECTED] Ph: +45 3815 2572 Fax: +45 3815 2500 http://uk.cbs.dk/arc www.cbs.dk/india xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx On Fri, Nov 7, 2008 at 8:42 AM, Max B. Sawicky <[EMAIL PROTECTED]> wrote: > Jim Devine wrote: >> >> Max B. Sawicky wrote: >>> >>> Social-democracy is dead? So what system prevails in Western Europe? >> >> I'd say that it depends on the country (and one's definition of >> "social democracy"), but most places, if not dead, it's on life >> support. The euro-zone pact was a big blow... > > > Life support how? These days I'm reading about European Community > plans to build crazy high speed rail everywhere. > > That's why I asked what lefts do in a soc-dem context. > You've already got social insurance. Lots of things are > nationalized already, and those that are don't always work > splendidly. I suppose you could be fighting privatization. > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
