Why the hell should success be rewarded? Success is a reward in its own right. Success should be enabled for more people, and that is what the evil welfare state ideology is all about.

But yes, I agree that our income tax progression is too steep and our system is riddled with all kinds of “envy taxes”. I see a problem more with the Finnish mindset than the Nordic model.

There is no one percent gap between the US and Europe, I thought we settled that already. Even if you’re talking about “old Europe” it’s a bit dubious to claim so.

Secondly, the article deals with historical evidence and so did I. After the WWII, for example, Finland has grown faster than the US (and there is no particular reason to assume that it will not countinue doing so). Or, to give another piece of evidence, the US growth has been slower during the last 20 years or so – after Reaganomics so to speak – than it was during the 20 years before that.

Anyway, these kinds of statitics can be twisted or explained almost any way you want. The bottom line is, that there really is no great gap between the US and the Scandinavian countries (or Great Britain, New Zeland or whatever is your favorite pick for a “free Economy”), in particular if you take into account the longer hours the Americans work.

There was more behind the link than just the contents, see the underlined titles – or don’t, the chapter 13 is not online.

In case you do try the ETLA’s book Mistä talouskasvu syntyy? chapter 13 Julkinen sektori, verotus ja talouskasvu by Jaakko Kiander (VTT, tutkimusprofessori, VATT)
– Sorry, I am not going to bother with this. If the definative study is in Finnish, then there is a great secret trapped behind the Finnish language.

“If you don’t, well, just think about it: historically there is no big difference between the economical growth of such countries like the USA or Great Britain which have lower tax rates and smaller public sector and those which have higher and bigger like the Scandinavian countries.”
– Over time a one percent difference makes HUGE differneces. There is currently a gap between growth in the US and Europe. The US is pulling away from Europe.

Thanks for the link, but it is only of the index.

Do you read Finnish? In case you do try the ETLA’s book Mistä talouskasvu syntyy? chapter 13 Julkinen sektori, verotus ja talouskasvu by Jaakko Kiander (VTT, tutkimusprofessori, VATT)

If you don’t, well, just think about it: historically there is no big difference between the economical growth of such countries like the USA or Great Britain which have lower tax rates and smaller public sector and those which have higher and bigger like the Scandinavian countries.

There must be studies about this in English, too.

You are welcome to pay high taxes. The people they are giving your money to certainly appreciate it.

“The real rapid growth is happening in the poorer countries – and Ireland. A bit less rapid growth is happening among other places in Finland. And I don’t have to guess what taxes have to do with the growth because it’s been studied. There is no correlation between the two, highly taxed countries have done as well as less taxed countries.”

Link please for the study that says there is no correlation between growth and tax rate..

Good comments though….

The real rapid growth is happening in the poorer countries – and Ireland. A bit less rapid growth is happening among other places in Finland. And I don’t have to guess what taxes have to do with the growth because it’s been studied. There is no correlation between the two, highly taxed countries have done as well as less taxed countries. The people in highly taxed countries do on average better, though, and there is more social mobility. In other words, high taxes slowing down economical growth is a myth.

Comparing those growth figures is like comparing two-year old and 17 year-old. The other one is almost grown up and the other one HAS A LONG WAY TO GO in order to catch up. It is always easier to raise your salary from 100 to 200 dollar/euros per month than let’s say from 4000 to 8000.

“US is a country for people who want to work and earn money. People born in US are ready to earn and make money from their childhood.”

Typical American bullshit…we Europeans just drink latte and discuss politics, right?

Well there is old and new Europe. Look at the taxes:

—————-
Taxation as a percentage of the overall economy of the European Union fell slightly in 2004 to 40.7% of gross domestic product, down from 40.9% in 2003. However, the latest figures from the European Union’s statistical office Eurostat continue to show wide variations in national tax burdens, with the Nordic countries the most heavily taxed.

In 2004 Sweden (51.2%) recorded the highest ratio, followed by Denmark (49.9%), Belgium (47.4%), France (45.3%), Finland (44.5%) and Austria (44.3%).

The lowest ratios were observed in Lithuania (28.7%), Latvia (29.1%), Slovakia (30.6%), Ireland (31.7%), Estonia (32.7%) and Cyprus (33.7%).
—————-

Now where is the growth taking place? Is there a connection between the two. In which group is there ‘Great’ social welfare?

So, how come Europe’s economy is growing so much faster? (Or did you by “Europe” mean Germany and France as most anti-European Americans do?)

US is a paradise in any way for anyone who wants to work and the only country where you never feel that you are foreigner. People who speak about bad life in US, healthcare and expensive study look quite funny. Just compare what you have, what you drive and what you can get during whole your life here. Tiny omakoti and cheap french car?

There are those who don’t have anything in US. But open your eyes in Finland you have same kind of people and the only difference that they get money for doing nothing except drinking.