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The average

while the average person in Nordic nations

large advantage using this comparison. As

(no data available for Iceland) had disposable

seen in Figure 2, measures of per capita GDP

person in Nordic

income of barely $14,300, less than 53 percent

from the World Bank, the OECD, the IMF,

nations has

of the U.S. level.10 Even Norwegians, bolstered

and the CIA all show that Americans have

barely 51 percent

about $6,000 of additional economic output

by oil wealth, had per capita disposable

per person, significantly more than $20,000

income of less than $16,800, barely 62 percent

as much private

for each family of four.

of the American level. Danes and Finns are at

consumption as

Although per capita GDP is an excellent

the bottom, with less than 50 percent of the

measure of overall economic output relative

disposable income of the average American. A

an average

to population, it does not necessarily mea-

separate data series, which includes numbers

American.

sure living standards. Comparing U.S. and

for Iceland, is more flattering to Nordic

Nordic living standards requires numbers for

nations. Per capita disposable income in

disposable income or personal consumption.

America barely changes, but the average dis-

Fortunately, both types of numbers are avail-

posable income for Nordic nations climbs by

more than $3,000.11 But even if this data

able. In both cases, the figures demonstrate

that GDP statistics actually understate the

series is more accurate, the average resident of

degree to which people in Nordic nations

a Nordic nation has only 65 percent of the

have lower living standards compared to

disposable income of the average American.

their American counterparts.

Personal consumption numbers tell a simi-

The OECD, for instance, has two data

lar story. In 2005, the Danish Finance Ministry

series for disposable income, both included in

produced numbers comparing per capita pri-

vate consumption in OECD nations.12 As seen

Figure 3. According to a study using 2003

data, the average person in the United States

in Figure 4, the average person in Nordic

had more than $27,000 of disposable income,

nations has barely 51 percent as much private

Figure 4

Higher Living Standards in America

250,000

P rivate Consumption per Capita

Individual Consumption per Capita

200,000

150,000

100,000

50,000

0

Norway

Denmark

Iceland

Sweden

Finl and

United States

Source: Danish Finance Ministry.

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