and economic system of Denmark. Sanders himself is running on democratic socialism, with the

promise that it’ll dramatically improve the United States, just like in Denmark. But

IS Denmark really some sort of socialist utopia?

Well, not at first. During the 1930s Great Depression, Denmark was struggling. Exports

fell and unemployment went through the roof. In 1933, the Danish prime minister signed

an agreement to establish state welfare services, in an effort to help struggling citizens.

Today, Denmark is still by and large a social democracy. So, what does that mean exactly?

Well, social democracy is a limited form of socialism. It differs from outright socialism

in that workers do not own the means of production. Under such a system, sometimes referred to

as the “Nordic model,” businesses are not nationalized and private competition is

encouraged. Still, it isn’t a totally free market. There are strict governmental regulations

and an emphasis on social equality through a progressive tax rate and social services.

In other words, Social Democracy is capitalism for those who are doing well, and socialism

for those who need help.

As a result, Denmark has been considered the happiest country in the world in recent years,

although in 2015 they were surpassed by Switzerland. They have the 5th highest GDP per capita in

the world, an average life expectancy that’s ten years higher than the world average, and

one of the least corrupt, and most transparent governments on earth.

But, many point to Denmark’s high tax rate of up to 56%, which they say discourages entrepreneurship

and innovation. There are also anxieties about welfare abuse, with about 9% of the nation’s

workforce on lifetime disability benefits. Not to mention the worrisome shift in demographics—an

aging population adds to the collective burden, while the number of workers paying into the

system decreases.

Denmark certainly has its flaws, as does democratic socialism. Denmark is one of the richest,

most transparent, and happiest countries on earth, but is supported through extremely

high taxation. While many disagree with their methods, it is hard to argue with their nearly

utopian results. .

As we mentioned, democratic socialism is a derivative of socialism, which in theory means

that the people control the means of production. Learn more about the nuances and misconceptions

about socialism in our video. Thanks for

watching TestTube News! Remember to like and subscribe below to keep up with our new videos.