Measures of per
The OECD and the International Monetary
higher in America, unemployment is lower,
Fund publish comprehensive economic data
and long-term growth is more impressive.
capita GDP from
that can be used to compare growth rates in
High levels of government spending in Nordic
the World Bank,
America and the five Nordic countries.8 As seen
nations have hindered economic performance.
the OECD, the
Excessive spending invariably creates a culture
in Figure 1, this data shows that the United
of dependency and misallocates a nation's eco-
States has enjoyed a faster rate of growth.
IMF, and the CIA
nomic resources. A heavy burden of govern-
According to the OECD, the U.S. grew by an
all show that
ment also requires an onerous tax burden, even
average of 3 percent between 1981 and 1991
if a government seeks to raise revenue in a rela-
and 3.3 percent between 1992 and 2006 (mean-
Americans have
tively nondestructive manner.
ing average growth of 3.2 percent for 1981 to
about $6,000
2006). The Nordic nations, by contrast, grew
of additional
by an average of 2.2 percent between 1981 and
Comparing the United States
1991 and 2.7 percent from 1992 to 2006
economic output
and the Nordic Nations
(meaning average growth of 2.5 percent over
per person.
the entire period). The IMF, meanwhile,
reports that U.S. growth averaged 3.1 percent
The two main ways of comparing eco-
from 19812006 compared to an average of 2.6
nomic performance are rate of growth and
percent for Nordic nations in the same period.9
level of output. One measures how fast gross
domestic product (or some similar measure
Some might argue that the faster rate of
of economic output) is expanding. The other
economic growth in the United States is the
compares the absolute level of economic out-
result of more rapid population growth. But
put (or some similar measure of prosperity).
that explains only a fraction of the difference.
By both measures, the Nordic nations gener-
Moreover, differences in population growth
ally do not fare well when compared to the
are irrelevant when examining per capita eco-
United States.
nomic output, and America clearly enjoys a
Figure 1
Faster Growth in the United States
3.5%
United States
United States
United States
3.0%
Nordi c
Nordic
Nations
Nations
2.5%
Nordic
Nations
2.0%
1.5%
1.0%
OECD (19811991)
OECD (19922006)
IMF (19812006)
Sources: Organization for Economic Cooperation and Development, International Monetary Fund.
3