Tag Archives: Sweden

Are Nordic countries succeeding with socialism like Bernie Sanders says?

Individials pay extremely high income taxes in Nordic countries
Individials pay extremely high income taxes in Nordic countries

Last week, I saw back to back studies on Nordic countries reported by the far-left UK Independent and Barron’s magazine. We’re probably going to hear more about how great socialism is from socialists, and since they seem to point to Nordic countries as proof, we should probably look at the studies and see what the truth is.

Let’s start with the report from Barron’s. You’ll have heard of Barron’s if you’re an investor.

It says:

Although there are areas—especially in taxes and labor market regulation—where socialist elements still exist in the Nordics, the region is by no means socialist today. In fact, according to the Heritage Foundation’s index of economic freedom, Sweden, Norway, Finland, Iceland, and Denmark rank among the 30 most capitalist countries in the world.

These countries used to be socialist in the 1970s and 1980s. Socialism means a huge government work force, high taxes, massive regulation of private sector businesses, and massive spending on welfare programs. You didn’t have to marry before having children, the government would give you welfare. You didn’t have to take care of yourself, the government would give you free health care. You didn’t have to save for retirement, the government would give you a pension.

The article mentions one country in particular – Sweden. And here is what socialism looked like in Sweden:

In 1960, for every 100 “market-financed” Swedes (i.e. those who derived their income predominantly from private enterprise), there were 38 who were “tax-financed” (i.e. dependent on the public sector for their income, whether as civil servants or as recipients of payments from the state). Thirty years later, that number had risen to 151—in other words, there were significantly more people living off of the state than paying into the system. This reflects Sweden’s move away from a capitalist free-market economy to a socialist model.

When people talk about socialism, they mean more people living off the state than paying into the system.

But socialism can’t last forever. Eventually, the people in the private sector realize that they are keeping less and less of what they earn, and they stop working, or just leave. The article notes that IKEA, which started out in Sweden, moved out to avoid paying the 57% corporate tax rate.

Eventually, and this is the part that Bernie Sanders is ignorant about, Sweden slashed or eliminated taxes across the board, then cut their government spending on welfare, subsidies and gv:

A major tax reform in 1990/91 slashed corporate taxes from 57% to 30%. Income from shares was exempted from taxation, while capital gains from shares were taxed at only 12.5%.

The top marginal income-tax rate was set at around 50%, a reduction by 24 to 27 percentage points for the majority of the workforce. The proportion of earners taxed at a marginal rate of over 50% dropped from over half to only 17% paying income tax to the central government.

The reforms continued over the following years: in 2004, the estate tax of up to 30% was scrapped. Today, there is no estate tax in Sweden. The abolition of the wealth tax, which had already been cut, came into effect retroactively as of 1 January 2007. The corporate tax rate continued to decline, getting cut from 30% to 26.3% in 2009 and to 22% in 2013. Property tax rates were also cut substantially.

Between 1993 and 2000, social spending dropped from 22.2% to 16.9% of GDP, economic subsidies from 8.7% to 1.8% and public-sector payroll costs from 18.2% to 15.6%.

Sweden might be a little further ahead of some of the other Nordic countries. Over in Finland, they are still climbing out of it, and the massive government spending is so hard for socialists to cut.

Here’s a story from Finland about their government-run health care system – the same kind that Bernie is always bragging about, and telling us how well it works in Finland.

Far-left Reuters reports:

Finland’s coalition government resigned on Friday a month ahead of a general election, saying it could not deliver on a healthcare reform package that is widely seen as crucial to securing long-term government finances.

Healthcare systems across much of the developed world have come under increasing stress in recent years as treatment costs soar and people live longer, meaning fewer workers are supporting more pensioners.

Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected. But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.

The very health care systems that Bernie lectures American voters about are all in decline and failing:

Other Nordic countries have also grappled with the need to cut costs. Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.

Denmark will gradually increase the retirement age to 73 – the highest in the world – while cutting taxes and unemployment benefits to encourage people to work more.

If you learned anything from this article, I’d like you to do me a favor. Please share and/or tweet this post, or share and/or tweet the posts from Barron’s and Reuters. We have an election coming up in 2020, and right now, the people are being lied to by foolish socialist politicians who talk and talk about things they have no knowledge about. We need to correct the views of the American people with facts. We can’t make the mistake of electing Democrats who are terrible at health care, and only good at making promises to spending taxpayer money. They have no idea how economics actually works in the real world, and we need to do everything we can to keep them out of power.

 

Are Nordic countries succeeding with socialism like Bernie Sanders says?

Individials pay extremely high income taxes in Nordic countries
Individials pay extremely high income taxes in Nordic countries

Last week, I saw back to back studies on Nordic countries reported by the far-left UK Independent and Barron’s magazine. We’re probably going to hear more about how great socialism is from socialists, and since they seem to point to Nordic countries as proof, we should probably look at the studies and see what the truth is.

Let’s start with the report from Barron’s. You’ll have heard of Barron’s if you’re an investor.

It says:

Although there are areas—especially in taxes and labor market regulation—where socialist elements still exist in the Nordics, the region is by no means socialist today. In fact, according to the Heritage Foundation’s index of economic freedom, Sweden, Norway, Finland, Iceland, and Denmark rank among the 30 most capitalist countries in the world.

These countries used to be socialist in the 1970s and 1980s. Socialism means a huge government work force, high taxes, massive regulation of private sector businesses, and massive spending on welfare programs. You didn’t have to marry before having children, the government would give you welfare. You didn’t have to take care of yourself, the government would give you free health care. You didn’t have to save for retirement, the government would give you a pension.

The article mentions one country in particular – Sweden. And here is what socialism looked like in Sweden:

In 1960, for every 100 “market-financed” Swedes (i.e. those who derived their income predominantly from private enterprise), there were 38 who were “tax-financed” (i.e. dependent on the public sector for their income, whether as civil servants or as recipients of payments from the state). Thirty years later, that number had risen to 151—in other words, there were significantly more people living off of the state than paying into the system. This reflects Sweden’s move away from a capitalist free-market economy to a socialist model.

When people talk about socialism, they mean more people living off the state than paying into the system.

But socialism can’t last forever. Eventually, the people in the private sector realize that they are keeping less and less of what they earn, and they stop working, or just leave. The article notes that IKEA, which started out in Sweden, moved out to avoid paying the 57% corporate tax rate.

Eventually, and this is the part that Bernie Sanders is ignorant about, Sweden slashed or eliminated taxes across the board, then cut their government spending on welfare, subsidies and gv:

A major tax reform in 1990/91 slashed corporate taxes from 57% to 30%. Income from shares was exempted from taxation, while capital gains from shares were taxed at only 12.5%.

The top marginal income-tax rate was set at around 50%, a reduction by 24 to 27 percentage points for the majority of the workforce. The proportion of earners taxed at a marginal rate of over 50% dropped from over half to only 17% paying income tax to the central government.

The reforms continued over the following years: in 2004, the estate tax of up to 30% was scrapped. Today, there is no estate tax in Sweden. The abolition of the wealth tax, which had already been cut, came into effect retroactively as of 1 January 2007. The corporate tax rate continued to decline, getting cut from 30% to 26.3% in 2009 and to 22% in 2013. Property tax rates were also cut substantially.

Between 1993 and 2000, social spending dropped from 22.2% to 16.9% of GDP, economic subsidies from 8.7% to 1.8% and public-sector payroll costs from 18.2% to 15.6%.

Sweden might be a little further ahead of some of the other Nordic countries. Over in Finland, they are still climbing out of it, and the massive government spending is so hard for socialists to cut.

Here’s a story from Finland about their government-run health care system – the same kind that Bernie is always bragging about, and telling us how well it works in Finland.

Far-left Reuters reports:

Finland’s coalition government resigned on Friday a month ahead of a general election, saying it could not deliver on a healthcare reform package that is widely seen as crucial to securing long-term government finances.

Healthcare systems across much of the developed world have come under increasing stress in recent years as treatment costs soar and people live longer, meaning fewer workers are supporting more pensioners.

Nordic countries, where comprehensive welfare is the cornerstone of the social model, have been among the most affected. But reform has been controversial and, in Finland, plans to cut costs and boost efficiency have stalled for years.

The very health care systems that Bernie lectures American voters about are all in decline and failing:

Other Nordic countries have also grappled with the need to cut costs. Sweden is to gradually raise its retirement age and has opened up parts of the healthcare system to the private sector in a bid to boost efficiency.

Denmark will gradually increase the retirement age to 73 – the highest in the world – while cutting taxes and unemployment benefits to encourage people to work more.

If you learned anything from this article, I’d like you to do me a favor. Please share and/or tweet this post, or share and/or tweet the posts from Barron’s and Reuters. We have an election coming up in 2020, and right now, the people are being lied to by foolish socialist politicians who talk and talk about things they have no knowledge about. We need to correct the views of the American people with facts. We can’t make the mistake of electing Democrats who are terrible at health care, and only good at making promises to spending taxpayer money. They have no idea how economics actually works in the real world, and we need to do everything we can to keep them out of power.

 

Study: sex-reassignment surgery does not improve mental health of transgender people

Investigation in progress
Investigation in progress

I found this peer-reviewed PLOS study while reading an article from CNS News.

The study takes a look at sex-reassigned people in pro-LGBT Sweden, between 1973 and 2003. Specifically, they aim to measure “mortality, morbidity, and criminal rate after surgical sex reassignment of transsexual persons” over a 30 year period.

The setting is important because Sweden has a much higher tolerance for gay rights than other Western countries, e.g. – America. There’s virtually no dissent from the gay rights agenda in Sweden – certainly no organized dissent.

Here are the results and the conclusion:

Results

The overall mortality for sex-reassigned persons was higher during follow-up (aHR 2.8; 95% CI 1.8–4.3) than for controls of the same birth sex, particularly death from suicide (aHR 19.1; 95% CI 5.8–62.9). Sex-reassigned persons also had an increased risk for suicide attempts (aHR 4.9; 95% CI 2.9–8.5) and psychiatric inpatient care (aHR 2.8; 95% CI 2.0–3.9). Comparisons with controls matched on reassigned sex yielded similar results. Female-to-males, but not male-to-females, had a higher risk for criminal convictions than their respective birth sex controls.

Conclusions

Persons with transsexualism, after sex reassignment, have considerably higher risks for mortality, suicidal behaviour, and psychiatric morbidity than the general population. Our findings suggest that sex reassignment, although alleviating gender dysphoria, may not suffice as treatment for transsexualism, and should inspire improved psychiatric and somatic care after sex reassignment for this patient group.

So, there were higher risks of death, higher risk of suicidal behavior, and higher mental illness.

The CNS News article interviewed a Johns Hopkins University scientist who is familiar with the history of sex-reassignment surgery.

Excerpt:

Dr. Paul R. McHugh, the Distinguished Service Professor of Psychiatry at Johns Hopkins University and former psychiatrist–in-chief for Johns Hopkins Hospital, who has studied transgendered people for 40 years, said it is a scientific fact that “transgendered men do not become women, nor do transgendered women become men.”

[…]Dr. McHugh, who was psychiatrist-in-chief at Johns Hopkins Hospital for 26 years, the medical institute that had initially pioneered sex-change surgery – and later ceased the practice – stressed that the cultural meme, or idea that “one’s sex is fluid and a matter of choice” is extremely damaging, especially to young people.

[…][T]here is plenty of evidence showing that “transgendering” is a “psychological rather than a biological matter,” said Dr. McHugh.

“In fact, gender dysphoria—the official psychiatric term for feeling oneself to be of the opposite sex—belongs in the family of similarly disordered assumptions about the body, such as anorexia nervosa and body dysmorphic disorder,” said McHugh.

“Its treatment should not be directed at the body as with surgery and hormones any more than one treats obesity-fearing anorexic patients with liposuction,” he said.

In fact, at Johns Hopkins, where they pioneered sex-change-surgery, “we demonstrated that the practice brought no important benefits,” said Dr. McHugh. “As a result, we stopped offering that form of treatment in the 1970s.”

Regarding the study, McHugh says this:

The most thorough follow-up of sex-reassigned people—extending over 30 years and conducted in Sweden, where the culture is strongly supportive of the transgendered—documents their lifelong mental unrest.”

“Ten to 15 years after surgical reassignment, the suicide rate of those who had undergone sex-reassignment surgery rose to 20 times that of comparable peers,” said McHugh.

Normally, when it comes to questions like these, I think it’s best to be guided by the evidence. What good would it do to tell someone to do something that makes them like you today (“you’re so tolerant and compassionate”) if they commit suicide tomorrow? Although people today think that being truthful and setting boundaries is “intolerant”, it can actually save someone’s life. When you stop someone from going further in a direction that will expose them to harm, you’re actually doing the right thing – even if they hate you right now for disagreeing with them. (That hatred of dissent is a sign that they are wrong, by the way)

Study: sex-reassignment surgery does not improve mental health of transgender people

Investigation in progress
Investigation in progress

I found this peer-reviewed PLOS study while reading an article from CNS News.

The study takes a look at sex-reassigned people in pro-LGBT Sweden, between 1973 and 2003. Specifically, they aim to measure “mortality, morbidity, and criminal rate after surgical sex reassignment of transsexual persons” over a 30 year period.

The setting is important because Sweden has a much higher tolerance for gay rights than other Western countries, e.g. – America. There’s virtually no dissent from the gay rights agenda in Sweden – certainly no organized dissent.

Here are the results and the conclusion:

Results

The overall mortality for sex-reassigned persons was higher during follow-up (aHR 2.8; 95% CI 1.8–4.3) than for controls of the same birth sex, particularly death from suicide (aHR 19.1; 95% CI 5.8–62.9). Sex-reassigned persons also had an increased risk for suicide attempts (aHR 4.9; 95% CI 2.9–8.5) and psychiatric inpatient care (aHR 2.8; 95% CI 2.0–3.9). Comparisons with controls matched on reassigned sex yielded similar results. Female-to-males, but not male-to-females, had a higher risk for criminal convictions than their respective birth sex controls.

Conclusions

Persons with transsexualism, after sex reassignment, have considerably higher risks for mortality, suicidal behaviour, and psychiatric morbidity than the general population. Our findings suggest that sex reassignment, although alleviating gender dysphoria, may not suffice as treatment for transsexualism, and should inspire improved psychiatric and somatic care after sex reassignment for this patient group.

So, there were higher risks of death, higher risk of suicidal behavior, and higher mental illness.

The CNS News article interviewed a Johns Hopkins University scientist who is familiar with the history of sex-reassignment surgery.

Excerpt:

Dr. Paul R. McHugh, the Distinguished Service Professor of Psychiatry at Johns Hopkins University and former psychiatrist–in-chief for Johns Hopkins Hospital, who has studied transgendered people for 40 years, said it is a scientific fact that “transgendered men do not become women, nor do transgendered women become men.”

[…]Dr. McHugh, who was psychiatrist-in-chief at Johns Hopkins Hospital for 26 years, the medical institute that had initially pioneered sex-change surgery – and later ceased the practice – stressed that the cultural meme, or idea that “one’s sex is fluid and a matter of choice” is extremely damaging, especially to young people.

[…][T]here is plenty of evidence showing that “transgendering” is a “psychological rather than a biological matter,” said Dr. McHugh.

“In fact, gender dysphoria—the official psychiatric term for feeling oneself to be of the opposite sex—belongs in the family of similarly disordered assumptions about the body, such as anorexia nervosa and body dysmorphic disorder,” said McHugh.

“Its treatment should not be directed at the body as with surgery and hormones any more than one treats obesity-fearing anorexic patients with liposuction,” he said.

In fact, at Johns Hopkins, where they pioneered sex-change-surgery, “we demonstrated that the practice brought no important benefits,” said Dr. McHugh. “As a result, we stopped offering that form of treatment in the 1970s.”

Regarding the study, McHugh says this:

The most thorough follow-up of sex-reassigned people—extending over 30 years and conducted in Sweden, where the culture is strongly supportive of the transgendered—documents their lifelong mental unrest.”

“Ten to 15 years after surgical reassignment, the suicide rate of those who had undergone sex-reassignment surgery rose to 20 times that of comparable peers,” said McHugh.

Normally, when it comes to questions like these, I think it’s best to be guided by the evidence. What good would it do to tell someone to do something that makes them like you today (“you’re so tolerant and compassionate”) if they commit suicide tomorrow? Although people today think that being truthful and setting boundaries is “intolerant”, it can actually save someone’s life. When you stop someone from going further in a direction that will expose them to harm, you’re actually doing the right thing – even if they hate you right now for disagreeing with them. (That hatred of dissent is a sign that they are wrong, by the way)

If Sweden and Germany became US states, they would be among the poorest states

Lets take a closer look at a puzzle
Lets take a closer look at a puzzle

There seems to be a lot of talk among Democrats and native young people to the effect that European countries have less “income inequality” thanks to bigger government, higher taxes, and more social spending. Is there a downside to this?

The Mises Institute takes a look at it:

The battle over the assumed success of European socialism continues. Many European countries like Sweden have gained a reputation as being very wealthy in spite of their highly regulated and taxed economies. From there, many assume that the rest of Europe is more or less similar, even if slightly poorer. But if we look more closely at the data, a very different picture emerges, and we find that the median household in the US is better off (income-wise) than the median household in all but three European countries.

[…]Using the BEA’s regional price parity index, we can take now account for the different cost of living in different states…
[…]We now see that there’s less variation in the median income levels among the US states. That makes sense because many states with low median incomes also have a very low cost of living. At the same time, many states with high median incomes have a very high cost of living.

Now that we’ve accounted for the low cost of living in Mississippi, we find that Mississippi ($26,517) is no longer the state with the lowest median income in real terms. New York ($26,152) is now the state with the lowest median income due to its very high cost of living.

This has had the effect of giving us a more realistic view of the purchasing power of the median household in US states. It is also more helpful in comparing individual states to OECD members, many of which have much higher costs of living than places like the American south and midwest.  Now that we recognize how inexpensive it is to live in places like Tennessee, Florida, and Kentucky, we find that residents in those states now have higher median incomes than Sweden (a place that’s 30% more expensive than the US) and most other OECD countries measured.

Once purchasing power among the US states is taken into account, we find that Sweden’s median income ($27,167) is higher than only six states: Arkansas ($26,804), Louisiana ($25,643), Mississippi ($26,517), New Mexico ($26,762), New York ($26,152) and North Carolina ($26,819).

We find something similar when we look at Germany, but in Germany’s case, every single US state shows a higher median income than Germany. Germany’s median income is $25,528. Things look even worse for the United Kingdom which has a median income of $21,033, compared to $26,517 in Mississippi.

Meanwhile, Colorado ($35,059) has a median income nearly identical to Switzerland ($35,083), and ten states (Connecticut, Iowa, Maryland, Minnesota, New Hampshire, North Dakota, South Dakota, Utah, Virginia, and Washington State) show higher median incomes than Switzerland. Luxembourg ($38,502), on the other hand, shows a median income higher than every state except New Hampshire ($39,034).

None of this analysis should really surprise us. According to the OECD’s own numbers (which take into account taxes and social benefits, the US has higher median disposable income than all but three OECD countries. Sweden ranks below the US in this regard, as does Finland and Denmark.

The fact that the median level in the US is above most OECD countries thus makes it no surprise that most of these countries then rank below most US states. The US states that have income level above the median US level will, not surprisingly, outpace many OECD countries by a considerable margin.

What’s going on here? Well, it turns out that when you have fewer regulations on business, lower business taxes, and an emphasis on working rather collecting welfare, that people have more money in their pockets and a better standard of living. The trouble with Europe is that too many able-bodied people can get by without working. In the United States, we put more emphasis on making your own way, earning your own pay, and spending or saving your money as you please.

In America, the system is geared towards equipping each person to serve their fellows in the private sector workplace. More people working means more wealth is produced, and more wealth produced means that people have a higher standard of living. You wouldn’t have a higher standard of living in a country where most people didn’t work, and just relied on the few who did work. There isn’t enough to go around in society where most people don’t work.