It is an economic model comprising the economic and social policies as well as typical cultural practices common to the NORDIC COUNTRIES.
Which countries are NORDIC COUNTRIES?
- DENMARK
- FINLAND
- ICELAND
- NORWAY
- SWEDAN
Basically it is referred for European countries.
These countries have high standard of living and low income disparity due to Redistributive taxation policy. It is also due to the fact that harmony exists between them and they think for the benefits of all. When capitalism combines social benefits with homogeneous mixture of thoughts, people are ought to remain on top in happy index.
HOW MIXED MARKET CAPITALISM EXISTS?
There exists high degree of private ownership except in Norway, therefore people are free to produce whatever they wish like. This obviously means in order to increase profit one will produce for richer section depriving the poorer section but in case of Nordic Countries people think about everyone as there is less population. Also due to high degree of government intervention the prices are made suitable for the general public.
WHAT IS REDISTRIBUTIVE TAXATION?
It is imposition of different tax rates on richer and poorer sections of the society.
Moreover, this system also includes social benefits such as free healthcare, free education and pension benefits.
But this ain't mean it doesn't have its cons. Due to the social benefits many people from all over the world migrate here proving to be an added burden on the government. But the native are preferred first in terms of selection for jobs. Furthermore, economists argue that heavy taxes with high degree of government intervention on richer section wil reduce the impetus to produce more thereby affecting GDP and productivity, which might be true for larger economies but for Nordic Countries, well the model proved to be the best.
