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Why won't American, German, Japanese, British and French economy grow by 5% this year?
10/28/2010 | WesternCulture

Posted on 10/28/2010 10:59:56 AM PDT by WesternCulture

I'm Swedish and I admit my nation has made a lot of mistakes throughout the centuries.

But, in resemblence to the other Nordic nations (Scandinavia + Finland), we know how to run an economy.

From people who live in other parts of the World pretending to understand macro economics I often hear remarks like "Norway is rich because of oil" and "Sweden is a small country with a homogenous population that therefore is easily governed".

A nation like Libya too houses a homogenous population and has even more oil and gas reserves than Norway, but can't exactly compete with Scandinavia in terms of things like Porsches per capita. Why?

The tiny Viking nation of Norway today is an extremly healthy economy boasting more dollar millionaires per capita than any other nation on Earth.

Perhaps this also has got something to do with law and order, Lutheran work ethics, education and a genuine understanding of the word "democracy".

Britain is today ruining herself on social security programmes it can't afford while the French are on senseless strikes leading nowhere but into a "cul-de-sac" (dead end).

Over here in the Nordic countries, we have since long abandonded national strategies like those of the other European nations. Building up national debt simply isn't a good idea. We have failed in other areas like that of immigration policy, but not in this regard.

Despite being home to some of the most PC political parties on Earth, Scandinavia is worthy of admiration in many other respects.

For instance, have a look at the Forbes Global 2000 list. The Nordic countries (population 25 million) have more companies noted than Germany (population 83 million).

It all begun around 1980.

At that time Norway and Denmark decided it was a good idea too reduce their national debt. Sweden, where I'm from, went the other way and therefore we still are lagging behind Denmark in the area of GDP/capita (according to my conclusions anyhow).

Instead of passing on national debt from one generation to the next we have decided that the best solution is to strive to get rid of national debt as such.

Many Americans fail to understand USA since 40 years ago (or more) is trapped in a similar kind of vicious circle that Sweden was caught up in around 1980; in order to fuel demand from the consumer sector of economy "artificial" demand is built up by tax cuts (which are great IF the government can afford them) and in order to get some of the money back, the government relies on high corporate taxes strangeling the business sector.

Today, Scandinavia has;

- Lower corporate taxes than America and Germany

- Lower Income taxes than the US

- Much higher wages than the rest of Europe, Japan and the US

- Very small national deficits

Yes, the Nordic countries still are countries characterized by a "big government" philosophy, but no one could deny the Nordic Countries, the tenth largest economy on Earth by the way, also features a very healthy business climate and and a GDP growing faster than all other fully industrialized parts of the World..


TOPICS: Business/Economy; Culture/Society; Government
KEYWORDS: anothervanity; britain; denmark; economy; finland; france; germany; iceland; japan; norway; scandinavia; scaninavia; sweden; taxes; thedeficit; troll; vanity
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To: BelegStrongbow

The whole purpose of the bailout was to make sure that the Ruling Class had plenty of cash so they could buy when everyone else is selling out at the bottom.


21 posted on 10/28/2010 12:09:41 PM PDT by AZLiberty (Yes, Mr. Lennon, I do want a revolution.)
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To: pallis

“I’ll take less government and more liberty over a well run big government”

- The problem regarding America is that you are presently building up an indebted, oversized government on the ruins of an overly taxed business sector which fails to compete globally as well as heavily indebted consumers.

In Scandinavia, governments are far too big like said, but at least the businesses are healthy and the taxes don’t scare neither consumers or investors from consuming and investing.


22 posted on 10/28/2010 12:15:21 PM PDT by WesternCulture
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To: Persevero
In deed, success is rarely built on a single reason or factor. But failure certainly can be.
23 posted on 10/28/2010 12:20:48 PM PDT by Red Dog #1
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To: atm98
I'm not certain about the other Scandinavian countries, but Norway's cost of living is outrageous.
24 posted on 10/28/2010 12:23:03 PM PDT by Red Dog #1
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To: AZLiberty

Sounds about right and not even news, and I’m rather irritated at them for being so ruthless.

Then again, at least it shows they do understand reality and are just trying to get everyone else to unlearn it so they can have the field to themselves. Chutzpah, but effective.


25 posted on 10/28/2010 12:25:03 PM PDT by BelegStrongbow (St. Joseph, patron of fathers, pray for us!)
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To: pallis

The problem is that you’re getting neither. We don’t have to follow the Scandinavian model exactly, but we really can’t continue what we’re doing. It’s absolutely absurd at every level.


26 posted on 10/28/2010 12:37:29 PM PDT by garbanzo (Government is not the solution to our problems. Government is the problem.)
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To: Red Dog #1

“I’m not certain about the other Scandinavian countries, but Norway’s cost of living is outrageous.”

- Norwegian costs of living are indeed very high despite the fact that they, without a doubt, also are very rich.

Comparing Norway to countries like USA, Switzerland and Sweden - where people have been among the richest on this planet for the last 50 years or so - you might end up with the conclusion that Norwegians live in comparatively small houses and drive petty cars. But, on the other hand, “new”
dollar millionaires have been made in Norway during the last 20 years at a pace that ridicule most other Western nations.


27 posted on 10/28/2010 12:49:54 PM PDT by WesternCulture
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To: garbanzo

“The problem is that you’re getting neither. We don’t have to follow the Scandinavian model exactly, but we really can’t continue what we’re doing. It’s absolutely absurd at every level.”

- America is a shining beacon of human spirit and endeavor.

Like Europe is.

Take the time to feel downhearted, because sometimes it’s natural to perceive of things in that maner, but never turn your back on your one and only true home on this Earth.

America has the great deeds and words of Jefferson and Lincoln. Efforts and declarations going hand in hand which have defined the concept of human progress through centuries.

Here in Europe, we salute Beethoven and Schiller, two children of the same noble tradition of enlightment, democracy and patriotism as Washington, B Franklin, Jefferson and Lincoln.

The following poem was written by Schiller in 1785. Some years later on, Beethoven put music to it and thereby created his 9th symphony - by many considered the greatest piece of music ever composed by man.

Today, It is the anthem of the European Union.

The music: http://www.youtube.com/watch?v=_-mvutiDRvQ

The lyrics in translation from 18th century German:

“Joy, beautiful sparkle of the gods,
Daughter of Elysium,
We enter, fire-drunk,
Heavenly one, your shrine.
Your magics bind again

What custom has strictly parted.

(1785 version: What custom’s sword has parted.)

All men become brothers

(1785 version: Beggars become princes’ brothers.)

Where your tender wing lingers.
Chorus

Be embraced, millions!
This kiss of the entire world!
Brothers, above the starry canopy
Must a loving Father reside.

Whoever has succeeded in the great attempt
To be a friend’s friend;
Whoever has won a lovely woman
Add in his jubilation!
Yes, who calls even one soul
His own on the earth’s sphere!
And whoever never could achieve this,
Let him steal away crying from this gathering!

Those who occupy the great circle,
Pay homage to sympathy!
It leads to the stars
Where the unknown one reigns.

All creatures drink joy
At the breasts of nature,
All good, all evil
Follow her trail of roses.
Kisses she gave us, and the vine,
A friend, proven in death.
Pleasure was given to the worm,
And the cherub stands before God.

Do you fall down, you millions?
Do you sense the creator, world?
Seek him above the starry canopy,
Above the stars he must live.

Joy is the name of the strong spring
In eternal nature.
Joy, joy drives the wheels
In the great clock of worlds.
She lures flowers from the buds,
Suns out of the firmament,
She rolls spheres in the spaces
That the seer’s telescope does not know.

Happy, as his suns fly
Through the heaven’s magnificent plain
Run, brothers, your track
Joyfully, as a hero to victory.

From the fiery mirror of truth
She smiles upon the researcher,
Towards virtue’s steep hill
She guides the endurer’s path.
Upon faith’s sunlit mountain
One sees her banners in the wind,
Through the opening of burst coffins
One sees her standing in the chorus of angels.

Endure courageously, millions!
Endure for the better world!

There above the starry canopy
A great God will reward.

Gods one cannot repay
Beautiful it is, to be like them.

Grief and poverty, acquaint yourselves
With the joyful ones rejoice.

Anger and revenge be forgotten,
Our deadly enemy be forgiven,
No tears shall he shed
No remorse shall gnaw at him

Our debt registers be abolished
Reconcile the entire world!
Brothers, over the starry canopy
God judges, as we judged.

Joy bubbles in the cup,
In the grape’s golden blood

Cannibals drink gentleness

The fearful, courage
Brothers, fly from your perches,
When the full cup is passed,
Let the foam spray to the heavens
This glass to the good spirit

He whom the spirals of stars praise,
He whom the seraphim’s hymn glorifies,
This glass to the good spirit
Above the starry canopy!

Courage firm in great suffering,
Help there, where innocence weeps,
Eternally sworn oaths,
Truth towards friend and foe,
Mens’ pride before kings’ thrones —
Brothers, even if it costs property and blood, —
The crowns to those who earn them,
Defeat to the lying brood!

Close the holy circle tighter,
Swear by this golden vine:
Remain true to the vows,
Swear by the judge above the stars!

Escape the tyrants’ chains,
Generosity also to the villain,
Hope upon the deathbeds,
Mercy from the high court!
The dead, too, shall live!
Brothers, drink and chime in,
All sinners shall be forgiven,
And hell shall be no more.

A serene departing hour!
Sweet sleep in the shroud!
Brothers—a mild sentence
From the final judge!”

Eternal greetings from Europe to America!!


28 posted on 10/28/2010 1:27:44 PM PDT by WesternCulture
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To: WesternCulture
FYI...

German unemployment drops below 3m

29 posted on 10/28/2010 2:08:27 PM PDT by null and void (We are now in day 645 of our national holiday from reality. - 0bama really isn't one of US.)
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To: null and void

“FYI...

German unemployment drops below 3m”

- Good news.

I recently heard the German economy will grow by 3.5% on an annual basis.

I have not heard any news about strikes in Germany.

Germany is welcome to play part in the North European saga of success presently evolving in Scandinavia.

It’s off to work we go!


30 posted on 10/28/2010 2:19:42 PM PDT by WesternCulture
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To: WesternCulture

I think “culture” is THE bigger factor in determining HOW a nation uses whatever framework of national governance it has, more than does political ideology. I think culture - and cultural differences - between “Scandinavia”, and the major nations of central and southern Europe - will (when the research is done) demonstrate HOW nations seemingly very close ideologically and in the framework of governance, chose different policy solutions to similar problems and consequently have different outcomes as well.

I think culture explains how major beliefs of people can surpass ideological definitions in terms of cultural and social expectations of both Liberty and government authority, in democracies and in non-democratic states as well.


31 posted on 10/28/2010 2:35:13 PM PDT by Wuli
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To: Wuli

“I think culture explains how major beliefs of people can surpass ideological definitions in terms of cultural and social expectations of both Liberty and government authority, in democracies and in non-democratic states as well”

- A very good analysis.

But, how should countries like Germany, America and Japan, formerly world-leading industrial powers of this world today ACT?


32 posted on 10/28/2010 2:48:48 PM PDT by WesternCulture
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To: garbanzo

“The problem is that you’re getting neither.”

In no way did I intend to suggest the US has either small government or a working Scandinavian model of corporate friendly Socialism. The problem is that the US will never have a workable Socialism, regardless of the model it is based on. The way out of our mess is a long, hard road towards smaller, less intrusive government, not towards an agreeable Socialism. While not an Islamic wreck like Libya, the US is equally different from any of the Scandinavian cultures. Liberty and individualism and a return to our unique Western roots is the only way to salvage the US out of our long downward slide. It will take a strong political fight to cut government back, but that is the easy part. The cultural fight to regain moral sanity and the values that once made this a great nation to live in is a fight that too many Americans are ill-equipped to wage.


33 posted on 10/28/2010 3:00:17 PM PDT by pallis
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To: pallis

What Germany, USA, France and all others could learn from countries like Sweden and Denmark is this;

- Reduce goverment spending

- Reduce corporate taxes

Watch unemployment drop, watch investments returning, see optimism anew appearing in the faces of people.

There is no major difference between Stockholm, Sweden, Detroit, Michigan and Newcastle, Britain.

All we have to do is to give up on people like Michael Moore.


34 posted on 10/28/2010 3:12:43 PM PDT by WesternCulture
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To: pallis

Seriously, you should enter politics.

Hope you already have.

Your ideas seem sound and you obviously care.

But, I’m not American, so I shouldn’t talk too much here.

Anyhow, keep up the good spirit!

Regards from Gothenburg, Sweden


35 posted on 10/28/2010 3:17:15 PM PDT by WesternCulture
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To: WesternCulture
“But, how should countries like Germany, America and Japan, formerly world-leading industrial powers of this world today ACT?”

That's a MUCH bigger topic (book lenght???). My only point was to ask/think-about what mechanism is it within some very ideologically close nations who are also governed extremely similarly that leads public consensus in those nations to adopt very different policy solutions to identical or very similar issues.

It is clear that when comparing Germany, the U.K. and France on the one hand with "Scandinavia" on the other; that extreme differences in ideology or governance structures cannot explain the policy differences, because from the first case to the second there is not such extreme differences.

Yet, obviously in spite of extreme similarities of ideology and governance, public consensus has produced very different policies.

And the biggest real difference between the first case and the second, the difference from which very like-minded people ideologically make very different public policy choices - national culture.

36 posted on 10/28/2010 3:38:00 PM PDT by Wuli
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To: Wuli

My one and only advice to all of these major economies is this:

- Pay your debts (you cou could afford it by cutting down on government expenditure)

- Encourage education on a broad level (every smart child that enters a gang instead of a university is a major loss to humanity). In Scandinavia, we are presently lowering taxes while providing more youngsters opportunities.

This guy was born in Ethiopia and thanks to Sweden and America he is today one of the most succesfull chefs on Earth:

http://en.wikipedia.org/wiki/Marcus_Samuelsson

Good societies and good old fashioned work ethics still pays off.


37 posted on 10/28/2010 4:23:05 PM PDT by WesternCulture
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To: WesternCulture
“- Does the average American family own two houses and a $35 000 Volvo v70 while travelling to exotic resorts in Thailand and such places each year?”

You have a good point. I have discussed this with other Americans and we have never figured out how they afford to do this. I have assumed it is due to long term planning and possibly inheritance. Please enlighten me if you have an answer.

38 posted on 10/28/2010 8:27:02 PM PDT by atm98
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To: WesternCulture
“Encourage education on a broad level (every smart child that enters a gang instead of a university is a major loss to humanity). In Scandinavia, we are presently lowering taxes while providing more youngsters opportunities.”

Unfortunately in the United States, in the United States context and factual situation, education reform actually will require NOT ONE ADDITIONAL CENT (we already spend more than we need to).

It will require:

(1) total restructuring of who is and how they come to be in charge of it - in the first 12 grades;

(2) complete alteration of its priorities in both its curriculum and methodology, in K-12;

(3) those two priorities set with greater demands from elected bodies and less acquiescence in the demands of self-appointed education professionals (in as much as they now represent the "education industrial complex" and its interests and not intrinsically "education";

(4) and with de-politicization as a corollary priority within both of those priorities;

and all of it joined by

(5) an end to tenure and

(6) parental choice of where they want their child's portion of state support to go.

Other kinds of education "reform" have no hope of an existence, in the U.S. context, without those core structural changes.

What is most important is a national "social" commitment - a social and cultural element - to all children being educated and all adults having higher education opportunities available to them and within their reach.

However, it is total myth, often dominant in "western culture" that centralized government MUST take charge of it all and dictate everything about it and to the extent that the centralized government is not forever extending its breadth and depth into the workings of education that "the nation" is no sufficiently committed.

The myth in that substitutes "the state" as THE force and not "the society", acting not only through the state, or not even dominantly through the state, but through the private associations of the people, as individuals and as groups as well, making what they see as THEIR best choices within their LIBERTY to do so.

The only purely essential role of the state, in helping society fulfill that social and cultural commitment is to assist those of lessor means in participating fully in the education opportunities that "the society" has produced. It is not a given that any particular of those opportunities themselves (the education institutions) MUST be created or controlled by the state, in order for "the society" to have a high commitment to their broadest affect and reach.

39 posted on 10/29/2010 4:31:43 PM PDT by Wuli
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