The balance between free markets and strong government
It’s no secret that the Scandinavian nations are doing something right. They consistently lead the world in measures of happiness and quality of life. Political guru Francis Fukuyama called the search for the good society “getting to Denmark”. Even The Economist magazine featured a goofy looking Viking on its cover with the headline “The Next Supermodel”.
How the Nordic countries achieve their success–and whether they can be copied by other nations–is another matter. Bernie looks upon them as a model. Hillary disagrees. Hell will freeze over before Ted and Donald cast their eyes in such a “socialist” direction.
…One key insight is to dispel the myth, pervasive in America and dangerously infective elsewhere, that the private sector does everything well and the public sector does everything poorly. Modern society requires an extensive infrastructure, which does not emerge bottom-up from unregulated markets. This has always been the case, in America as elsewhere, as my recent interview with Daron Acemoglu attests. One reason that the Nordic nations work well might be because they have not—yet—succumbed to the siren’s song of free market fundamentalism.
A strong state capable of building infrastructure is not enough. It must also be an inclusive state that works for the benefit of everyone, as opposed to an extractive state that works only for the benefit of an elite few, as my interview with Acemoglu also makes clear. Inclusiveness requires a balance of power among the various sectors of the society. Perhaps the Nordic nations work well for this reason also—strong states working collaboratively with a strong private sector, strong labor unions, and a strong, well-informed, and trusting electorate.
Navigating like a Norwegian: How Norway Dispels the Private vs Public Sector Myth - Evonomics
It’s no secret that the Scandinavian nations are doing something right. They consistently lead the world in measures of happiness and quality of life. Political guru Francis Fukuyama called the search for the good society “getting to Denmark”. Even The Economist magazine featured a goofy looking Viking on its cover with the headline “The Next Supermodel”.
How the Nordic countries achieve their success–and whether they can be copied by other nations–is another matter. Bernie looks upon them as a model. Hillary disagrees. Hell will freeze over before Ted and Donald cast their eyes in such a “socialist” direction.
…One key insight is to dispel the myth, pervasive in America and dangerously infective elsewhere, that the private sector does everything well and the public sector does everything poorly. Modern society requires an extensive infrastructure, which does not emerge bottom-up from unregulated markets. This has always been the case, in America as elsewhere, as my recent interview with Daron Acemoglu attests. One reason that the Nordic nations work well might be because they have not—yet—succumbed to the siren’s song of free market fundamentalism.
A strong state capable of building infrastructure is not enough. It must also be an inclusive state that works for the benefit of everyone, as opposed to an extractive state that works only for the benefit of an elite few, as my interview with Acemoglu also makes clear. Inclusiveness requires a balance of power among the various sectors of the society. Perhaps the Nordic nations work well for this reason also—strong states working collaboratively with a strong private sector, strong labor unions, and a strong, well-informed, and trusting electorate.
Navigating like a Norwegian: How Norway Dispels the Private vs Public Sector Myth - Evonomics
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