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Pure theoretical capitalism can't exist in the real world (zero transaction fees, perfect symmetric information, etc.). Therefore, capitalist countries regulat

Pure theoretical capitalism can't exist in the real world (zero transaction fees, perfect symmetric information, etc.). Therefore, capitalist countries regulate their economies to make up for this: consumer protections (must have a license to perform surgery), measures to curtail the public good paradox (pollution regulation), etc. In the US, we lean toward less regulation than many European countries and we reap different outcomes as a result. Generally: if it's easier to hire/fire employees and pay them the price you choose, it's easier to take a risk with a new business. Empowering unions discourages business risk. Empowering companies encourages monopolistic behavior. There are tradeoffs on both sides. That being said, Denmark has 5.8 million people who are 86% Danish[0], which is roughly the population of the Atlanta metropolitan area [1]. It is difficult to draw confident conclusions from a comparison between the US and Denmark given the vast differences between them. The US path to "Nordic levels of equality" may look much different from the Nordic one. [0] https://en.wikipedia.org/wiki/Denmark https://en.wikipedia.org/wiki/Denmark [1] https://en.wikipedia.org/wiki/Atlanta https://en.wikipedia.org/wiki/Atlanta

emilgouliev 5y ago
> In the US, we lean toward less regulation than many European countries and we reap different outcomes as a result. Yes, when laws are friendlier to wealthier people, wealthier people end up better of than poorer people, not sure why you think this is a very insightful comment. > The US path to "Nordic levels of equality" may look much different from the Nordic one. I am always amused to see supposedly economically literate techies making obviously false economic claims: Denmark having a smaller population would actually make it harder for them to achieve an effective welfare state, not easier, given economies of scale. This is econ 101 stuff. In the extreme end, a country with, say, 1000 people would have a much more difficult time implementing a welfare state than Denmark would. American economy is significantly more advanced than the Danish economy, so if they can pull this off, it should be much easier for the US.
- djoldman 5y ago
  >> In the US, we lean toward less regulation than many European countries and we reap different outcomes as a result. > Yes, when laws are friendlier to wealthier people, wealthier people end up better of than poorer people, not sure why you think this is a very insightful comment. I probably should have written my comments in a slightly different order. This: "Generally: if it's easier to hire/fire employees and pay them the price you choose, it's easier to take a risk with a new business." was meant to be one different result that could come about with less regulation. >> The US path to "Nordic levels of equality" may look much different from the Nordic one. > I am always amused to see supposedly economically literate techies making obviously false economic claims: Denmark having a smaller population would actually make it harder for them to achieve an effective welfare state, not easier, given economies of scale. This is econ 101 stuff. In the extreme end, a country with, say, 1000 people would have a much more difficult time implementing a welfare state than Denmark would. American economy is significantly more advanced than the Danish economy, so if they can pull this off, it should be much easier for the US. What "obviously false" claim did I make? I made a case for why Denmark is significantly different economically and demographically from the US and tentatively stated that that implied that the US path to Nordic levels of equality MAY look much different from the Nordic one. How is it that MAY is obviously false? The opposite of MAY is certainty - is it certain that the US path to equality will be exactly the same as the Nordic one?

emilgouliev 5y ago

> In the US, we lean toward less regulation than many European countries and we reap different outcomes as a result. Yes, when laws are friendlier to wealthier people, wealthier people end up better of than poorer people, not sure why you think this is a very insightful comment. > The US path to "Nordic levels of equality" may look much different from the Nordic one. I am always amused to see supposedly economically literate techies making obviously false economic claims: Denmark having a smaller population would actually make it harder for them to achieve an effective welfare state, not easier, given economies of scale. This is econ 101 stuff. In the extreme end, a country with, say, 1000 people would have a much more difficult time implementing a welfare state than Denmark would. American economy is significantly more advanced than the Danish economy, so if they can pull this off, it should be much easier for the US.

djoldman 5y ago
>> In the US, we lean toward less regulation than many European countries and we reap different outcomes as a result. > Yes, when laws are friendlier to wealthier people, wealthier people end up better of than poorer people, not sure why you think this is a very insightful comment. I probably should have written my comments in a slightly different order. This: "Generally: if it's easier to hire/fire employees and pay them the price you choose, it's easier to take a risk with a new business." was meant to be one different result that could come about with less regulation. >> The US path to "Nordic levels of equality" may look much different from the Nordic one. > I am always amused to see supposedly economically literate techies making obviously false economic claims: Denmark having a smaller population would actually make it harder for them to achieve an effective welfare state, not easier, given economies of scale. This is econ 101 stuff. In the extreme end, a country with, say, 1000 people would have a much more difficult time implementing a welfare state than Denmark would. American economy is significantly more advanced than the Danish economy, so if they can pull this off, it should be much easier for the US. What "obviously false" claim did I make? I made a case for why Denmark is significantly different economically and demographically from the US and tentatively stated that that implied that the US path to Nordic levels of equality MAY look much different from the Nordic one. How is it that MAY is obviously false? The opposite of MAY is certainty - is it certain that the US path to equality will be exactly the same as the Nordic one?