Hello Reader,
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I’ve built much of my worldview on a simple belief: that human beings flourish when free to pursue their dreams without government interference. That prosperity comes from individual choice, not government control.
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And yet, three countries shatter my certainty. Sweden, Denmark, and Norway thrive while doing much of what I believe kills prosperity.
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They tax more, regulate more, and redistribute more. And yet they thrive. Their people live longer. Their kids are better educated. Their citizens trust their government — and report being happier, year after year.
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How? Why? Am I just wrong?

The Nordic Paradox

I don’t want to win an argument this week. I want to wrestle with contradiction. I want to understand why these high-tax societies are outperforming the “land of the free” — and whether true freedom might mean something more controlled and more collective than I’ve been willing to admit.
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What troubles me most about the U.S. economy is rising inequality, which has risen to levels that genuinely threaten our social fabric. Meanwhile, Denmark has one of the lowest income inequality ratings in the world. America’s inequality is now nearly double Denmark’s.
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And yet Nordic prosperity has not suffered. According to the IMF, Norway’s GDP per capita was over $90,000 in 2024, ahead of the U.S. at $85,000. But money isn’t the whole picture. The UN’s Human Development Index — which measures not just income, but also health and education — ranks Norway #2 in the world. Denmark is #5, followed by Sweden at #6.
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The U.S.? Seventeenth.

Safety, Not Socialism

So what gives? Are the Nordics proof that big government works? Is “democratic socialism” the answer?
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Not quite. Despite what the American far left claims, Scandinavia is not socialist. Their economies rank high on the Heritage Foundation’s Index of Economic Freedom. They have vibrant private sectors, open markets, and strong protections for property rights.
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In many ways, they are more pro-business than we are. Denmark, for example, has no minimum wage set by law — instead, wages are negotiated through collective bargaining agreements. Sweden has privatized parts of its education, healthcare systems, and retirement systems. Denmark offers a corporate tax rate of just 22%—below the OECD average, with generous incentives for R&D.
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These are not centrally planned economies. They are capitalist — but with strong safety nets.

The Trade-Off

Where they differ most is in their social model. All Nordic countries have high taxes — especially on the middle class. In Denmark, the top marginal tax rate kicks in at just 1.3 times the average income. And the tax burden isn’t just about income. Value-added taxes (similar to sales tax) are around 25 percent. Gas, alcohol, and vehicle ownership are heavily taxed.
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But in return, citizens receive universal healthcare, subsidized childcare, tuition-free universities, and generous parental leave. And here’s something crucial: these benefits aren’t “means-tested” — they don’t just go to the poor. Everyone receives them, reducing bureaucratic overhead—and class resentment.

Freedom to Take Risks

But here's where my assumptions crumble most dramatically. The Nordic model doesn't stifle entrepreneurship—it liberates it. Denmark has the highest number of rising unicorns per capita in Europe. Danish health tech startups are securing record-breaking investments.
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When failure doesn't mean bankruptcy or healthcare loss, people take more risks, not fewer. Free education eliminates student debt that might otherwise prevent risk-taking. Denmark even offers cash reimbursement for a large percentage of R&D losses—a crucial safety net for startups.
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Consider this: the very safety nets laissez-faire capitalists have long opposed might actually create more economic freedom, not less.

Healthcare Freedom

On healthcare specifically, most Scandinavian countries use public financing combined with market-friendly private service delivery. You don't need insurance to see a doctor, and wait times are generally shorter than in the fully public UK or Canadian systems. Outcomes are better, and costs are lower. The U.S. spends nearly 18 percent of its GDP on healthcare — more than double what Sweden spends — yet we rank lower in nearly every major health indicator.
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This creates another form of freedom: job mobility. In America, millions of workers remain chained to unsatisfying jobs solely for health insurance. Nordic workers can switch careers, start companies, or pursue education without losing healthcare coverage.
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But questions remain. Do these systems stifle medical innovation? Do they reduce choice? Are wait times longer? The evidence is mixed, and any system involves trade-offs between access, cost, and innovation.

A Path Forward

The Nordic model won’t transplant easily to the U.S. These societies do have inherent advantages—their populations are small, culturally homogeneous, and allow relatively limited immigration. We are large, diverse, and historically more welcoming. With politics deeply polarized, a Nordic-style social contract is harder to agree upon.
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But the results speak for themselves. Maybe economic freedom alone isn't enough to deliver human flourishing. Maybe some forms of state intervention—carefully designed, efficiently delivered, broadly shared—can actually enhance individual opportunity rather than smother it.
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I haven't abandoned my principles. But I'm making room for evidence, even when it's uncomfortable. These countries aren't utopias. But they've built something that works—and we should be willing to learn from it.

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