The United States is a dysfunctional basket case. The Left wants a safety net like Denmark’s but to pay for it by increasing taxes on the rich and corporations, supplemented by more borrowing and stock market speculation (for instance, pension funds relying on 7% annual returns to meet future obligations). The Right just resists, sensing the Left’s aspirations are a pipe dream and the pipe will eventually blow up in their collective face. In the meantime, the Danes agree to tax themselves - not just the Other Guy - to get the safety net they want. They are the grownups in the room. Check it out:
A few interesting tidbits:
Danish pensions are mostly funded through “defined contribution” plans, which means you get what’s paid in, not a promised amount.
The Danish tax system is not nearly as progressive as the US system. Sure, their top income tax rate is way higher than ours - but that rate is paid by the middle-class! And the high consumption taxes are regressive: hitting low-income households the most.
The Danish pension system relies on a mere 3% rate of return for invested funds and was rated #1 in the world in the 2015 Mercer Global Pension Index.
Denmark’s universal healthcare system relies on primary care gatekeepers and a no-fault malpractice system to control costs, which are about 31% lower than healthcare in the US.
Denmark is highly-unionized, but businesses are allowed to hire and fire employees relatively easily in exchange for guaranteeing workers sufficient income and retraining options if they lose their jobs. It’s called the “flexicurity model”.
This per Wikipedia: “The economy of Denmark is a modern mixed economy with comfortable living standards, a high level of government services and transfers, and a high dependence on foreign trade…Danish fiscal policy is generally considered healthy. Net government debt is very close to zero, amounting to 1.3% of GDP in 2017. Danish fiscal policy is characterized by a long-term outlook, taking into account likely future fiscal demands.”
Why can’t the US be more like Denmark?