- "Modern welfare states include the Nordic countries, such as Iceland, Sweden, Norway, Denmark, and Finland which employ a system known as the Nordic model. Esping-Andersen classified the most developed welfare state systems into three categories; Social Democratic, Conservative, and Liberal."
The socialist economists John Roemer and Pranab Bardhan criticize Nordic-style social democracy for its questionable effectiveness in promoting relative egalitarianism as well as its sustainability.
The Nordic social democracy requires a strong labor movement to sustain the heavy redistribution required. Roemer and Bardham argue that the sustainability of social democracy is limited and that establishing a market socialist economy by changing enterprise ownership would be more effective than social democratic redistribution at promoting egalitarian outcomes, particularly in countries with weak labor movements.
Although there are significant differences among the Nordic countries. Some common traits include support for a "universalist" welfare state aimed specifically at enhancing individual autonomy and promoting social mobility; a corporatist system involving a tripartite arrangement where representatives of labor and employers negotiate wages and labor market policy mediated by the government; and a commitment to widespread private ownership, free markets and free trade.
These traits prolong the sustainability of economic systems but at what cost in human development. Socialism goes against the prime moving agent of evolution yet most socialists believe in evolution.
According to sociologist Lane Kenworthy, in the context of the Nordic model "social democracy" refers to a set of policies for promoting economic security and opportunity within the framework of capitalism rather than a replacement for capitalism.
- Many countries are going through social experiment period but a thorough study of both history and the nature of mankind brings the wisdom of a collective economy into question. The Nordic Models are not socialism but a blend of capitalism, socialism, and democracy. There is no doubt that each of these countries has successes and failures. The question is which part of this blend is attributing to their problems. They are each an experiment within a somewhat homogeneous people. Ultimately the collectively controlled economy is an infringement upon individual rights and is the "One purse" approach that brings eventual social decay because it deprives the individual of both the responsibilities and rights that produces individual growth.
The effort required by individuals to care for the needy of their society through voluntary contributions and sharing binds the collective nature of society by love, honor, and appreciation rather than a social contract dependent upon force. The social contract that centralizes power and exercises authority within a broad society may and eventually does lead to corruption and abuse of that authority and power.
Articles on Sweden, Denmark, and Finland will show the debilitating effects of socialism and socialist policies on what was once some of the virtuous societies of Europe. Socialism brings about a slow but natural decay of the moral fabric that makes a society strong and thriving.
"Why is poverty rising in a country with a welfare system that purports to ensure that “all citizens have equal rights to social security”?" from the article by Danes Alexandra Lu, Lisa Sig Olesen.
- "A welfare state is a concept of government in which the state plays a key role in the protection and promotion of the economic and social well-being of its citizens. It is based on the principles of equality of opportunity, equitable distribution of wealth, and public responsibility for those unable to avail themselves of the minimal provisions for a good life. The general term may cover a variety of forms of economic and social organization. The sociologist T.H. Marshall identified the welfare state as a distinctive combination of democracy, welfare, and capitalism."
- "The welfare state involves a transfer of funds from the state, to the services provided (e.g. healthcare, education) as well as directly to individuals ("benefits"). It is funded through redistributionist taxation and is often referred to as a type of "mixed economy." Such taxation usually includes a larger income tax for people with higher incomes, called a progressive tax. This helps to reduce the income gap between the rich and poor."