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General News    H2'ed 1/28/16

Social Democracy for Dummies

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In that debate, no more was heard of Denmark, Sweden, or Norway. The audience was left in the dark. Later, in a speech at Georgetown University, Sanders tried to clarify his identity as a Democratic socialist. He said he's not the kind of Socialist (with a capital S) who favors state ownership of anything like the means of production. The Norwegian government, on the other hand, owns the means of producing lots of public assets and is the major stockholder in many a vital private enterprise.

I was dumbfounded. Norway, Denmark, and Sweden practice variations of a system that works much better than ours, yet even the Democratic presidential candidates, who say they love or want to learn from those countries, don't seem to know how they actually work.

Why We're Not Denmark

Proof that they do work is delivered every year in data-rich evaluations by the U.N. and other international bodies. The Organization for Economic Cooperation and Development's annual report on international well-being, for example, measures 11 factors, ranging from material conditions like affordable housing and employment to quality of life matters like education, health, life expectancy, voter participation, and overall citizen satisfaction. Year after year, all the Nordic countries cluster at the top, while the United States lags far behind. In addition, Norway ranked first on the U.N. Development Program's Human Development Index for 12 of the last 15 years, and it consistently tops international comparisons of such matters as democracy, civil and political rights, and freedom of expression and the press.

What is it, though, that makes the Scandinavians so different? Since the Democrats can't tell you and the Republicans wouldn't want you to know, let me offer you a quick introduction. What Scandinavians call the Nordic Model is a smart and simple system that starts with a deep commitment to equality and democracy. That's two concepts combined in a single goal because, as far as they are concerned, you can't have one without the other.

Right there they part company with capitalist America, now the most unequal of all the developed nations, and consequently a democracy no more. Political scientists say it has become an oligarchy -- a country run at the expense of its citizenry by and for the super rich. Perhaps you noticed that.

In the last century, Scandinavians, aiming for their egalitarian goal, refused to settle solely for any of the ideologies competing for power -- not capitalism or fascism, not Marxist socialism or communism. Geographically stuck between powerful nations waging hot and cold wars for such doctrines, Scandinavians set out to find a path in between. That path was contested -- by socialist-inspired workers on the one hand and capitalist owners and their elite cronies on the other -- but it led in the end to a mixed economy. Thanks largely to the solidarity and savvy of organized labor and the political parties it backed, the long struggle produced a system that makes capitalism more or less cooperative, and then redistributes equitably the wealth it helps to produce. Struggles like this took place around the world in the twentieth century, but the Scandinavians alone managed to combine the best ideas of both camps, while chucking out the worst.

In 1936, the popular U.S. journalist Marquis Childs first described the result to Americans in the book Sweden: The Middle Way. Since then, all the Scandinavian countries and their Nordic neighbors Finland and Iceland have been improving upon that hybrid system. Today in Norway, negotiations between the Confederation of Trade Unions and the Confederation of Norwegian Enterprise determine the wages and working conditions of most capitalist enterprises, public and private, that create wealth, while high but fair progressive income taxes fund the state's universal welfare system, benefitting everyone. In addition, those confederations work together to minimize the disparity between high-wage and lower-wage jobs. As a result, Norway ranks with Sweden, Denmark, and Finland among the most income-equal countries in the world, and its standard of living tops the charts.

So here's the big difference: in Norway, capitalism serves the people. The government, elected by the people, sees to that. All eight of the parties that won parliamentary seats in the last national election, including the conservative HÃ ¸yre party now leading the government, are committed to maintaining the welfare state. In the U.S., however, neoliberal politics put the foxes in charge of the henhouse, and capitalists have used the wealth generated by their enterprises (as well as financial and political manipulations) to capture the state and pluck the chickens. They've done a masterful job of chewing up organized labor. Today, only 11% of American workers belong to a union. In Norway, that number is 52%; in Denmark, 67%; in Sweden, 70%.

In the U.S., oligarchs maximize their wealth and keep it, using the "democratically elected" government to shape policies and laws favorable to the interests of their foxy class. They bamboozle the people by insisting, as Hillary Clinton did at that debate, that all of us have the "freedom" to create a business in the "free" marketplace, which implies that being hard up is our own fault.

In the Nordic countries, on the other hand, democratically elected governments give their populations freedom from the market by using capitalism as a tool to benefit everyone. That liberates their people from the tyranny of the mighty profit motive that warps so many American lives, leaving them freer to follow their own dreams -- to become poets or philosophers, bartenders or business owners, as they please.

Family Matters

Maybe our politicians don't want to talk about the Nordic Model because it shows so clearly that capitalism can be put to work for the many, not just the few.

Consider the Norwegian welfare state. It's universal. In other words, aid to the sick or the elderly is not charity, grudgingly donated by elites to those in need. It is the right of every individual citizen. That includes every woman, whether or not she is somebody's wife, and every child, no matter its parentage. Treating every person as a citizen affirms the individuality of each and the equality of all. It frees every person from being legally possessed by another -- a husband, for example, or a tyrannical father.

Which brings us to the heart of Scandinavian democracy: the equality of women and men. In the 1970s, Norwegian feminists marched into politics and picked up the pace of democratic change. Norway needed a larger labor force, and women were the answer. Housewives moved into paid work on an equal footing with men, nearly doubling the tax base. That has, in fact, meant more to Norwegian prosperity than the coincidental discovery of North Atlantic oil reserves. The Ministry of Finance recently calculated that those additional working mothers add to Norway's net national wealth a value equivalent to the country's "total petroleum wealth" -- currently held in the world's largest sovereign wealth fund, worth more than $873 billion. By 1981, women were sitting in parliament, in the prime minister's chair, and in her cabinet.

American feminists also marched for such goals in the 1970s, but the Big Boys, busy with their own White House intrigues, initiated a war on women that set the country back and still rages today in brutal attacks on women's basic civil rights, health care, and reproductive freedom. In 1971, thanks to the hard work of organized feminists, Congress passed the bipartisan Comprehensive Child Development Bill to establish a multi-billion dollar national day care system for the children of working parents. In 1972, President Richard Nixon vetoed it, and that was that. In 1972, Congress also passed a bill (first proposed in 1923) to amend the Constitution to grant equal rights of citizenship to women. Ratified by only 35 states, three short of the required 38, that Equal Rights Amendment, or ERA, was declared dead in 1982, leaving American women in legal limbo.

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Tom Engelhardt, who runs the Nation Institute's Tomdispatch.com ("a regular antidote to the mainstream media"), is the co-founder of the American Empire Project and, most recently, the author of Mission Unaccomplished: Tomdispatch (more...)
 

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