Great Dane, Great Pain
"It is entirely possible to have a large welfare state, with generous benefits, without choking the economy," says Jonathan Cohn of the New Republic in a new series of articles, glorifying the Danish economic model. He enlists the support of several prominent economists from left and right.
First, let's compare material living standards in Denmark and the United States, looking at the poorest, the richest and the middle class in each society. The Economic Policy Institute estimates that the poorest 10% of Americans on average earn 39% of the US median income while their Danish counterparts earn 43% of the US median income, as Tim Worstall recently pointed out. Thus, the poorest 10% in America and in Denmark have about the same annual income (accounting for purchasing power parities and all social income transfers).
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