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Learning English
Scandinavia and economic performance
Scandinavia is not really all that moral or ethical anymore. While Scandinavians remain very judgmental, traditional morality has been to a significant degree replaced by liberal morality, perhaps more than anywhere else. Fortunately for Scandinavia, it is populated largely by Scandinavians which explains why liberalism hasn't totally destroyed their countries (yet).
At any rate the Scandinavian model performs well because Scandinavia is populated by Scandinavians. Americans of Scandinavian descent also do very well despite a fairly different socioeconomic model. While the intelligence of Scandinavians is comparable to other Europeans, they display higher levels of discipline and organization, hardly surprising given the history of northern peoples. This may be due to genetic superiority or perhaps to the influence of climate and geography on culture.
Key planks of the Scandinavian model in the past which led to present success included strategic protectionism and a relatively low corporate tax rate. Scandinavia was also an early mover into VAT, which drove up the savings rate and allowed for improved export performance and capital accumulation. The high income taxes are not a problem, as personal income taxation does not have a significant relationship to economic performance.
The competitive treatment of investment and capital is probably not that significant of a factor. Until the late 1980s the regulatory treatment of capital was quite severe, and it wasn't that long ago that the state rationed access to foreign exchange. Sweden reached 84 % of the Franco-German composite per capita income by 1914 and Denmark attained 98 % by that time. By the late 1920s Denmark had converged with Germany and Sweden did so by the mid-1940s. Both countries converged with the USA by the late 1960s along with the rest of Western Europe.
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