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Denmark As A Model For American Socialists?

In Denmark, everyone pays at least the 25% value-added tax (VAT) on all purchases. Income tax rates are high.

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Authored by Lars Hedegard via The Gatestone Institute:


Here are some facts to consider before American “democratic socialists” look to Denmark for guidance, as Senator Bernie Sanders did during the 2016 presidential campaign.

First of all, Danes actually pay for their brand of socialism through heavy taxation. In Denmark, everyone pays at least the 25% value-added tax (VAT) on all purchases. Income tax rates are high. If you receive public support and are of working age and healthy enough to work, the state will require that you look for a job or it will force a job on you.

The willingness of all the Danes to pay high taxes is predicated on the country’s high degree of homogeneity and level of citizens’ trust in each other, what sociologists call “social capital.” By and large, Danes do not mind paying into the welfare state because they know that the money will go to other Danes like themselves, who share their values and because they can easily imagine themselves to be in need of help — as most of them, from time to time, will be.

Whenever politicians propose tax cuts, they are met with vehement opposition: So, you want to cut taxes? What part of the welfare state are you willing to amputate? And that ends the debate.

Danes, in contrast to American socialists gaining ground in the Democratic Party, are increasingly aware that the welfare state cannot be sustained in conditions of open immigration. A political party agitating for “no borders” could never win a Danish election. Danes do not suffer from historical guilt: they have not attacked any other country for more than two centuries and have never committed a genocide.

Moreover, there is an even deeper truth to ponder: Denmark is not really socialist but constitutes a sui generis fusion of free-market capitalism and some socialist elements. Denmark has no minimum wage mandated by law. Wages, benefits and working conditions are determined through negotiations between employers and trade unions. 67% of Danish wage-earners are members of a union, compared to 19% in Germany and 8% in France. Strikes and lockouts are common, and the government will usually stay out of labor conflicts unless the parties are unable to agree.

It is uncomplicated for enterprises to fire workers, which gives them great flexibility to adapt to shifting market conditions. To alleviate the pain, the state has in place a number of arrangements such as generous unemployment benefits and programs to retrain and upgrade redundant workers.

Danish companies must make ends meet or perish. They generally will not get handouts from the government.

Denmark is more free-market oriented than the US. According to the Heritage Foundation’s 2018 Index of Economic Freedom, Denmark is number 12, ahead of the United States (number 18). Venezuela is at the bottom, one place ahead of number 180, North Korea.

Mads Lundby Hansen, chief economist of Denmark’s respected pro-free-market think tank CEPOS, comments:

“Very high taxes and the vast public sector clearly detract in the capitalism index and reduce economic freedom. But Denmark compensates by protecting property rights, by low corruption, relatively little regulation of private enterprise, open foreign trade, healthy public finances and more. This high degree of economic freedom is among the reasons for Denmark’s relatively high affluence.”
Trish Regan recently claimed on Fox Business that Danes pay a “federal tax rate” of 56% on their income. This is misleading. The 55.8% is the levied on the marginaltax for the top income bracket, only on the part of their income above DKK 498,900 ($76,500). Any income under DKK 498,900 is taxed at lower rates. And the 55.8% marginal rate does not represent a “federal” or “national” rate. It represents the total of all taxes on income: national tax, regional tax, municipal tax and labor market tax. It does not, however, include Denmark’s 25% value-added tax (VAT), paid on all purchases.

Regan also claimed that Danes pay a 180% tax on cars. While it is true that there was once a maximum tax of 180% on care in Denmark, the vehicle tax rates have been lowered in recent years. Today, the first DKK 185,100 ($28,400) of the price of a gas- or diesel-powered car is taxed at 85%, and if the car’s price is above DKK 185,100, the remaining amount is taxed at 150% — which is of course bad enough.

Denmark’s total tax burden amounts to 45.9% of GDP, the highest of all countries in the Organisation for Economic Co-operation and Development (OECD).

As pointed out in the Fox Business segment, all education for Danes is tuition-free, all the way through to a Ph.D. Not only that; the state will, within certain time constraints, pay students to study. For students at university level no longer living with their parents, the monthly cash grant comes to almost $1,000 per month. No fewer than 325,000 students out of a total population of 5.6 million benefit from this generous arrangement setting the state back to the tune of DKK 20.9 billion or 1% of GDP (latest 2018 figures just in and supplied by Mads Lundby Hansen). Denmark even pays student support to 20,000 foreign students.

Attempts by fiscal conservatives to cut down on payments to students have been successfully resisted by the vociferous and influential student organizations; at present it would appear impossible to muster anything like a parliamentary majority to limit the student handouts.

Fox Business is right that a great many Danes are on public transfer payments. Government figures from 2017 indicate that 712,300 Danes of working age (16-64) — not including recipients of student benefits — get public financial support. But Regan’s claim that most Danes do not work is ludicrous. According to Statistics Denmark, 69.9% of Danes aged 16-64 are active in the labor market.

How can Denmark pay for its comprehensive welfare state, which includes free medical care regardless of the severity of your condition? Regan claims that Denmark is “heavily in debt.” Not so. As it turns out, Denmark is among the least indebted countries in the world, even when compared to other Western countries. The Danish government’s gross debt stands at 35.9% of GDP. Compare that to, e.g., The United Kingdom (86.3 %), The United States (108%), Belgium (101%), Canada (86.6%), France (96.3%), Germany (59.8%), The Netherlands (53.5%), Italy (129.7%), Spain (96.7%) and even Switzerland (41.9%).

Comparing Denmark to the US, Madsen notes that the latter has a problem with fiscal sustainability that may necessitate tax increases. Denmark enjoys what he labels fiscal “oversustainability” (“overholdbarhed”).

At a time when socialism appears to be popular among certain sections of the American population, its proponents would do well not to cite Denmark as a model. The Danish fusion of free-market capitalism and a comprehensive welfare state has worked because Denmark is a small country with a very homogeneous population. This economic and social model rests on more than 150 years of political, social and economic compromises between peasants and landowners, business-owners and workers, and right- and left-leaning political parties. This has led to a measure of social and political stability that would be hard to emulate in much larger and more diverse counties such as the United States.


Lars Hedegaard, President of the Danish Free Speech Society, is based in Denmark.

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voza0dbOle C G Olesenusc440J Roderetfredd Recent comment authors
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voza0db
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Danes do not suffer from historical guilt: they have not attacked any other country for more than two centuries…THIS IS A LIE.

And it’s a LIE because Danes are part of the North Atlantic Terrorist Organization (NATO) so they can’t isolate themselves from the terrorism that such organization executes around the world.

Danes are attacking the countries under the NATO flag… Clearly a text written by a Dane!

Ole C G Olesen
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Ole C G Olesen

Lars Hedegaards Article is full of Truth , Half truth and many Omissions .. and may be even a lot of stuff Lars Hedegaard doesnt even know .At present Immigrants cost approx 100 Billion ( american Billion ) D Kr / Year .. Total Income Tax .. OECDs Highest nets 500 Billion in total to the State / Year.. this means Immigrants receive 20 % of the whole Income tax- cake .. the Tax felt most directly as oppressive by the Danes. This is Not MODERATE and in fact is not the whole outlay . ! There is an additional… Read more »

usc440
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usc440

5 million people live in Denmark…. mostly with 5 million hard working Danes ….none of them abusing the systems…. america has 350 million people…. with so many moochers that abuse the system… millions of welfare recipients…. how is that going to work?

J Roderet
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J Roderet

Denmark is a capitalist country with a welfare state. A “socialist” who holds that up as their “model” is not much of a socialist. The reality is that the financial oligarchy that rules the USA treats its people so badly that these Western European capitalist countries are seen as utopias by comparison.

fredd
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fredd

First of all, Danes actually pay for their brand of socialism through heavy taxation

AND NOT wasting trillions invading and occupying other countries

fredd
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fredd

By and large, Danes do not mind paying into the welfare state because
they know that the money will go to other Danes like themselves,

more like they themself will enjoy the benefits of that system when they have kids that need an education or retire become unemployed sick or benefited from it when they had their education

fredd
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fredd

67% of Danish wage-earners are members of a union, compared to 19% in Germany and 8% in France.

the number for france looks like somebody pulled that out of his ass

regolo gellini
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regolo gellini

If socialism exists in the USA, the only one I know is the one that socializes losses by corporations, while at the same time these too big to fail companies take their profits to the Virgin Islands and pay zero taxes at home, or at most a miserable 1%, if that 🙁

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Major Syrian Army Assault On Southeast Idlib As Sochi Deal Unravels

Though the Syrian war has grown cold in terms of international spotlight and media interest since September, it is likely again going to ramp up dramatically over the next few months. 

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Via Zerohedge


The Syrian Army unleashed a major assault across the southeastern part of Idlib province on Saturday, a military source told Middle East news site Al-Masdar in a breaking report. According to the source, government forces pounded jihadist defenses across the southeast Idlib axis with a plethora of artillery shells and surface-to-surface missiles.

This latest exchange between the Syrian military and jihadist rebels comes as the Sochi Agreement falls apart in northwestern Syria, and in response to a Friday attack by jihadists which killed 22 Syrian soldiers near a planned buffer zone around the country’s last major anti-Assad and al-Qaeda held region. The jihadist strikes resulted in the highest number of casualties for the army since the Sochi Agreement was established on September 17th.

Though the Syrian war has grown cold in terms of international spotlight and media interest since September, it is likely again going to ramp up dramatically over the next few months.

The Al-Masdar source said the primary targets for the Syrian Army were the trenches and military posts for Hay’at Tahrir Al-Sham in the towns of Al-Taman’ah, Khuwayn, Babulin, Haish, Jarjanaz, Um Jalal, and Mashirfah Shmaliyah. In retaliation for the Syrian Army assault, the jihadist rebels began shelling the government towns of Ma’an, Um Hariteen, and ‘Atshan.

Damascus has been critical of the Sochi deal from the start as it’s criticized Turkey’s role in the Russian-brokered ceasefire plan, especially as a proposed ‘de-militarized’ zone has failed due to jihadist insurgents still holding around 70% of the planned buffer area which they were supposed to withdraw from by mid-October. Sporadic clashes have rocked the “buffer zone” since.

Russia itself recently acknowledged the on the ground failure of the Sochi agreement even as parties officially cling to it. During a Thursday press briefing by Russian Foreign Ministry Spokesperson Maria Zakharova admitted the following:

We have to state that the real disengagement in Idlib has not been achieved despite Turkey’s continuing efforts to live up to its commitments under the Russian-Turkish Memorandum of September 17.

This followed Russia also recently condemning  “sporadic clashes” and “provocations” by the jihadist group HTS (the main al-Qaeda presence) in Idlib.

Likely due to Moscow seeing the writing on the wall that all-out fighting and a full assault by government forces on Idlib will soon resume, Russian naval forces continued a show of force in the Mediterranean this week.

Russian military and naval officials announced Friday that its warships held extensive anti-submarine warfare drills in the Mediterranean. Specifically the Russian Black Sea Fleet’s frigates Admiral Makarov and Admiral Essen conducted the exercise in tandem with deck-based helicopters near Syrian coastal waters.

Notably, according to TASS, the warships central to the drill are “armed with eight launchers of Kalibr-NK cruise missiles that are capable of striking surface, coastal and underwater targets at a distance of up to 2,600 km.”

Since September when what was gearing up to be a major Syrian-Russian assault on Idlib was called off through the Russian-Turkish ceasefire agreement, possibly in avoidance of the stated threat that American forces would intervene in defense of the al-Qaeda insurgent held province (also claiming to have intelligence of an impending government “chemical attack”), the war has largely taken a back-burner in the media and public consciousness.

But as sporadic fighting between jihadists and Syrian government forces is reignited and fast turning into major offensive operations by government forces, the war could once again be thrust back into the media spotlight as ground zero for a great power confrontation between Moscow and Washington.

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Trump Quietly Orders Elimination of Assange

The destruction of Assange has clearly been arranged for, at the highest levels of the U.S. Government, just as the destruction of Jamal Khashoggi was by Saudi Arabia’s Government.

Eric Zuesse

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On June 28th, the Washington Examiner headlined “Pence pressed Ecuadorian president on country’s protection of Julian Assange” and reported that “Vice President Mike Pence discussed the asylum status of Julian Assange during a meeting with Ecuador’s leader on Thursday, following pressure from Senate Democrats who have voiced concerns over the country’s protection of the WikiLeaks founder.” Pence had been given this assignment by U.S. President Donald Trump. The following day, the Examiner bannered “Mike Pence raises Julian Assange case with Ecuadorean president, White House confirms” and reported that the White House had told the newspaper, “They agreed to remain in close coordination on potential next steps going forward.”

On August 24th, a court-filing by Kellen S. Dwyer, Assistant U.S. Attorney for the Alexandria Division of the Eastern District of Virginia, stated: “Due to the sophistication of the defendant and the publicity surrounding the case, no other procedure [than sealing the case, hiding it from the public] is likely to keep confidential the fact that Assange has been charged. … This motion and the proposed order would need to remain sealed until Assange is arrested in connection with the charges in the criminal complaint and can therefore no longer evade or avoid arrest and extradition in this matter.” That filing was discovered by Seamus Hughes, a terrorism expert at the Program on Extremism at George Washington University. On November 15th, he posted an excerpt of it on Twitter, just hours after the Wall Street Journal had reported on the same day that the Justice Department was preparing to prosecute Assange. However, now that we know “the fact that Assange has been charged” and that the U.S. Government is simply waiting “until Assange is arrested in connection with the charges in the criminal complaint and can therefore no longer evade or avoid arrest and extradition in this matter,” it is clear and public that the arrangements which were secretly made between Trump’s agent Pence and the current President of Ecuador are expected to deliver Assange into U.S. custody for criminal prosecution, if Assange doesn’t die at the Ecuadorean Embassy first.

On November 3rd (which, of course, preceded the disclosures on November 15th), Julian Assange’s mother, Christine Ann Hawkins, described in detail what has happened to her son since the time of Pence’s meeting with Ecuador’s President. She said:

He is, right now, alone, sick, in pain, silenced in solitary confinement, cut off from all contact, and being tortured in the heart of London. … He has been detained nearly eight years, without trial, without charge. For the past six years, the UK Government has refused his requests to exit for basic health needs, … [even for] vitamin D. … As a result, his health has seriously deteriorated. … A slow and cruel assassination is taking place before our very eyes. … They will stop at nothing. … When U.S. Vice President Mike Pence recently visited Ecuador, a deal was done to hand Julian over to the U.S. He said that because the political cost of expelling Julian from the Embassy was too high, the plan was to break him down mentally…   to such a point that he will break and be forced to leave. … The extradition warrant is held in secret, four prosecutors but no defense, and no judge, … without a prima-facie case. [Under the U.S. system, the result nonetheless can be] indefinite detention without trial. Julian could be held in Guantanamo Bay and tortured, sentenced to 45 years in a maximum security prison, or face the death penalty,” for “espionage,” in such secret proceedings.

Her phrase, “because the political cost of expelling Julian from the Embassy was too high” refers to the worry that this new President of Ecuador has, of his cooperating with the U.S. regime’s demands and thereby basically ceding sovereignty to those foreigners (the rulers of the U.S.), regarding the Ecuadorian citizen, Assange.

This conservative new President of Ecuador, who has replaced the progressive President who had granted Assange protection, is obviously doing all that he can to comply with U.S. President Trump and the U.S. Congress’s demand for Assange either to die soon inside the Embassy or else be transferred to the U.S. and basically just disappear, at Guantanamo or elsewhere. Ecuador’s President wants to do this in such a way that Ecuador’s voters won’t blame him for it, and that he’ll thus be able to be re-elected. This is the type of deal he apparently has reached with Trump’s agent, Pence. It’s all secret, but the evidence on this much of what was secretly agreed-to seems clear. There are likely other details of the agreement that cannot, as yet, be conclusively inferred from the subsequent events, but this much can.

Basically, Trump has arranged for Assange to be eliminated either by illness that’s imposed by his Ecuadorean agent, or else by Assange’s own suicide resulting from that “torture,” or else by America’s own criminal-justice system. If this elimination happens inside the Ecuadorean Embassy in London, then that would be optimal for America’s President and Congress; but, if it instead happens on U.S. soil, then that would be optimal for Ecuador’s President. Apparently, America’s President thinks that his subjects, the American people, will become sufficiently hostile toward Assange so that even if Assange disappears or is executed inside the United States, this President will be able to retain his supporters. Trump, of course, needs his supporters, but this is a gamble that he has now clearly taken. This much is clear, even though the rest of the secret agreement that was reached between Pence and Ecuador’s President is not.

Scooter Libby, who had arranged for the smearing of Valerie Plame who had tried to prevent the illegal and deceit-based 2003 invasion of Iraq, was sentenced to 30 months but never spent even a day in prison, and U.S. President Trump finally went so far as to grant him a complete pardon, on 13 April 2018. (The carefully researched docudrama “Fair Game” covered well the Plame-incident.) Libby had overseen the career-destruction of a courageous CIA agent, Plame, who had done the right thing and gotten fired for it; and Trump pardoned Libby, thus retroactively endorsing the lie-based invasion of Iraq in 2003. By contrast, Trump is determined to get Julian Assange killed or otherwise eliminated, and even Democrats in Congress are pushing for him to get that done. The new President of Ecuador is doing their bidding. Without pressure from the U.S. Government, Assange would already be a free man. Thus, either Assange will die (be murdered) soon inside the Embassy, or else he will disappear and be smeared in the press under U.S. control. And, of course, this is being done in such a way that no one will be prosecuted for the murder or false-imprisonment. Trump had promised to “clean the swamp,” but as soon as he was elected, he abandoned that pretense; and, as President, he has been bipartisan on that matter, to hide the crimes of the bipartisan U.S. Government, and he is remarkably similar in policy to his immediate predecessors, whom he had severely criticized while he was running for the Presidency.

In any event, the destruction of Assange has clearly been arranged for, at the highest levels of the U.S. Government, just as the destruction of Jamal Khashoggi was by Saudi Arabia’s Government; and, just like in Khashoggi’s case, the nation’s ruler controls the prosecutors and can therefore do whatever he chooses to do that the rest of the nation’s aristocracy consider to be acceptable.

The assault against truth isn’t only against Assange, but it is instead also closing down many of the best, most courageous, independent news sites, such as washingtonsblog. However, in Assange’s case, the penalty for having a firm commitment to truth has been especially excruciating and will almost certainly end in his premature death. This is simply the reality. Because of the system under which we live, a 100% commitment to truth is now a clear pathway to oblivion. Assange is experiencing this reality to the fullest. That’s what’s happening here.

—————

Investigative historian Eric Zuesse is the author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

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Libya’s Peace Process Dies in Palermo

The best the Palermo negotiators could come up with at the end was a bland statement declaring their hope that sometime in the future all the Libyan forces will meet to sort out their differences.

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Authored by Richard Galustian for the Ron Paul Institute for Peace and Prosperity:


“Resounding flop” was the verdict of Italy’s former prime minister Matteo Renzi on this week’s Libya peace conference held in Palermo. He’s not wrong. The conference hosted by Italy’s new government achieved the remarkable feat of making Libya’s tensions worse, not better. Acrimony broke out between the parties, and Turkey’s delegation walked out, its vice president Fuat Oktay accusing unnamed States of trying to “hijack the process.”

Some sources in Palermo suggested, yet to be verified, that the US thought the Conference was not too bad: a joke if true.

Moreover the mystery we might ask is what “process” is there to hijack? Because the truth is, the peace plan the conference was supporting is already dead.

That plan was the brainchild of the United Nations, launched more than a year ago with the aim of ending Libya’s split between warring Eastern and Western governments with elections in December.

Even before the first delegates set foot in the pleasant Sicilian city of Palermo this week, the UN admitted the election date of December 10 they had decided to scrap.

The eastern government, led by the parliament in Tobruk, had made moves in the summer to organize a referendum on a new constitution which would govern the elections. But no referendum was held, and most Libyans agree it would be pointless because Tripoli, home to a third of the country’s population, is under the iron grip of multiple warring militias who have the firepower to defy any new elected government. Hours after the delegates left Palermo, those militias began a new bout of fighting in the Tripoli suburbs.

The best the Palermo negotiators could come up with at the end of the talks was a bland statement declaring their hope that sometime in the future all the Libyan forces will meet in a grand conference to sort out their differences – and this after four years of civil war. To say that chances of this are slim is an understatement.

Dominating the Palermo talks, and indeed Libya’s political landscape, was and is Field Marshall Khalifa Haftar, the commander of the Libyan National Army, the country’s most powerful formation. In four years, the LNA has secured Libya’s key oil fields and Benghazi, its second city, ridding most of the east Libya of Islamist militias.

Haftar met reluctantly negotiators in Palermo, but insisted he was not part of the talks process. The Italian government press office said Haftar was not having dinner with the other participants nor joining them for talks. Haftar specifically opposed the presence of the Muslim Brotherhood champion, Qatar, at the event along with Turkey.

Haftar clearly only attended because he had a few days before visiting Moscow – which sent to Sicily Russia’s Prime Minister Dmitry Medvedev – and because also of Egyptian President Sisi’s presence along with his allies.

Possibly Haftar was simply fed up. Twice in the past two years he has attended previous peace talks, hosted each time in Paris, giving the nod to declarations that Libya’s militias would dissolve. Yet the militias remain as strong as ever in Tripoli.

Haftar is detested by the militias and the Muslim Brotherhood (MB) but supported by a large segment of the population – 68 percent, according to an opinion poll by America’s USAID. His popularity is based on a single policy – his demand that security be in the hands of regular police and military, not the militias.

Not everyone is happy, certainly not Turkey, which is backing Islamist, MB and Misratan forces in western Libya who detest Haftar. Yet Turkey’s greatest statesman, the great Kamal Ataturk, was a champion of secularism: After the collapse of the Ottoman Empire following World War One Turkey faced the prospect of utter disintegration, and it was Attaturk who rose to the challenge, defending the country’s borders, while ordering that the mullahs, while responsible for spiritual welfare, have no political power.

Political Islam is not popular in Libya either. Libya is a Muslim country, its people know their faith, and most want government to be decided through the ballot box.

The problem for Libya is what happens next with the peace process broken. Haftar has in the past threatened to move on Tripoli and rid the militias by force if they refuse to dissolve, and it may come to that – a fierce escalation of the civil war.

The second possibility is that Libya will split. The east is, thanks to the LNA, militarily secure. It also controls two thirds of the country’s oil and operates as a separate entity, down to it banknotes, which are printed in Russia while the Tripoli government’s are printed in Britain. A formal split would be an economic boon for the lightly populated east, but a disaster for Tripolitania, its population losing most of the oil, its only source of export income.

Yet with the failure of peace talks, and no sign of Tripoli militias dissolving, military escalation or breakup seem more likely than ever.

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