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Jim

Thank goodness for social democracy, eh?

aje

yes - thank goodness for the lesser of two evils... (!)

Tomi

The Estonian economy per capita was obviously not one third ($5 480) in 1993. In 2005, after a decade of strong growth, it still was just something like 40% of Finland's GDP per capita.

And true enough, according to
http://www.balticsww.com/economic_stats.htm
in 1993 Estonia's GDP per capita was not $5000 but $1000.

aje

thanks for the fact checking

dearieme

Personally, I believe that the Estonians suffered from Cole Porter envy. Consider:-

"In Spain, the best upper sets do it,
Lithuanians and Letts do it,
Let's do it, let's fall in love.
The Dutch in old Amsterdam do it,
Not to mention the Finns,
Folks in Siam do it,
Think of Siamese twins......"

I rest my case.

Jim

"yes - thank goodness for the lesser of two evils... (!)"

I think the point is that Finland suggests there is little or nothing evil about social democracy and a large welfare state since it doesn't seem to have stopped Finland becoming a rich, open and overall pretty well-adjusted place. By all means argue against social democracy on principle but I'm struggling to see a negative impact on growth and human welfare - in fact, the example of Finland and the rest of Scandinavia suggest that the problem with social democracy elsewhere was that there wasn't enough of it.

aje

possibly - although i've never been to Scandinavia and know very little about the empirics. my concern would be that (i) open trade free rides on innovation (ii) generous welfare rests on migration restrictions, but if it's voluntary, fair dos.

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This also shows Finland's goverment has done a good job by balancing how much liberal market and goverment intervention their society needs!!

That is something many countries like USA haven known to do!!!

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Economy is something comparative, It has always been like that. Something is good if it does better than other things or it does better this year than before.

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It is impressive how the economy is affected with so many factors. those two as examples that it can make a huge difference. If you study all that.

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