Looking Ahead," Washington, DC, June 4, 2007).
private behavior presents a more complicated
picture. Many productive people have depart-
5. Organization for Economic Cooperation and
ed for lower-tax jurisdictions. Others remain,
Development (OECD), "OECD in Figures," Paris,
2006, http://www.oecdobserver.org/news/print
but they move their assets so they are hidden
page.php/aid/1988/OECD_in_Figures_2006-
from tax authorities.
2007.html
Sometimes this hidden discontent becomes
visible. Four of the five Nordic nations now
6. Ibid.
have right-leaning governments. The Swedes
7. International Monetary Fund, "World Economic
elected a conservative coalition government
Database" (2006 data), www.imf.org/external/pubs
late last year and the Finns made a similar
/ft/weo/2007/01/data/index.aspx.
choice earlier this year.42
8. All data adjusted for inflation to measure real
It is unclear whether electoral changes will
changes rather than nominal changes.
lead to government reform. But if residents of
Nordic nations want faster growth, more pros-
9. International Monetary Fund, "World Economic
perity, and improved competitiveness, they
Database" (19812006 data), www.imf.org/external
/pubs/ft/weo/2007/01/data/index.aspx.
need to reduce the size of the public sector.
Excessive government diminishes growth.
10. Romina Boarini, Asa Johansson, and Marco
And although the Nordic countries' relatively
Mira d'Ercole, "Alternative Measures of Well-
free markets mitigate the damage caused by
Being," Social, Employment and Migration Work-
ing Paper no. 33, OECD, February 17, 2006, www.
high taxes and high spending, the burden of
oecd.org/dataoecd/13/38/36165332.pdf.
government is hindering economic perfor-
mance. The Nordic Model is preferable to the
11. OECD, "Basic Structural Statistics," Main Eco-
Continental or Corporatist Model of nations
nomic Indicators, September 2006, www.oecd.org
/dataoecd/8/4/1874420.pdf.
such as France and Germany, which combines
welfare state policies and interventionism. But
12. Finance Ministry of Denmark, "Svar pa sporgs-
the Nordic Model does not look very impres-
mal nr. S 332 til finansministerer af 16. marts 2005
sive when compared to the United States.
stillet af Peter Christensen (V)," April 4, 2005, www.
folketinget.dk/samling/20042/spoergsmaal/S332
/svar/endeligt/20050407/156410.PDF.
Notes
13. Lars Henrik Bjørgum, "Minst I Lomme-
boken," Dagens Naeringliv, March 23, 2005.
1. Andre Sapir, "Globalisation and the Reform of
European Social Models," Bruegel Policy Brief,
14. The U.S. population has grown more rapidly
Issue 2005/01, November 2005, http://www.bru
than the population in Nordic nations, so the sig-
egel.org/Public/fileDownload.php?target=/Files/
nificant gap in growth comparisons translates into
media/PDF/Publications/Policy%20Briefs/PB20
a smaller advantage when examining per capita
0501_SocialModels.pdf.
GDP.
2. Jeffrey D. Sachs, "The Social Welfare State,
15. OECD, "OECD in Figures, 200607," Paris,
Beyond Ideology: Are Higher Taxes and Strong
2007, www.oecdobserver.org/news/printpage.php
Social `Safety Nets' Antagonistic to a Prosperous
/aid/1988/OECD_in_Figures_2006-2007.html.
Market Economy? The Evidence Is Now In,"
Scientific American, November 2006, http://www.
16. Hans Werner-Sinn, "Scandinavia's Accounting
sciam.com/article.cfm?articleID=000AF3D5-6D
Trick," IFO Viewpoints no. 80, Institute for Eco-
C9-152E-A9F183414B7F0000.
nomic Research, November 10, 2006, http://
www.cesifo-group.de/portal/page/portal/ifo
3. Thomas Fuller and Ivar Ekman, "The Envy of
Home/B-politik/05stp/_stp?item_link=stp080
Europe," International Herald Tribune, September
.htm.
17, 2005, http://www.iht.com/articles/2005/09/
16/business/wbmodel.php.
17. Department of Labor, "Employment Situation
Summary: July 2007," Bureau of Labor Statistics,
4. Jeffrey Owens (presentation to the United
August 3, 2007, www.bls.gov/news.release/emp
States Council for International Business confer-
sit.nr0.htm.
ence, "New OECD International Tax Initiatives:
18