Why Socialist Scandinavia Has Some Of The Highest Inequality In Europe

Business Insider ^ | 10/14/2014 | Mike Bird

[SeekAndFind]

The celebrated social-democratic nations of Scandinavia have some of the highest wealth inequality in Europe.

That's according to Credit Suisse's weighty Global Wealth Report 2014. It's a finding that's likely to seriously surprise some people. The top 10% of wealth holders in three Nordic countries (Norway, Sweden and Denmark) hold between 65 and 69 per cent of those nations' wealth.

In comparison to the other developed economies in Europe, Scandinavian inequality on this measure seriously stands out: they're significantly above British, French, Italian or Spanish levels. Germany and Austria come a little closer, but are still behind. Only finance-dominated Switzerland reaches higher levels of wealth inequality.

The Nordic nations on the list sit in the "high inequality" group, where the top 10% hold 60-70% of the country's household wealth.

In comparison countries that are usually thought to be more capitalist, like the UK, Canada and Australia, are a rung below in the "medium inequality" group, with the top 10% holding between 50-60%.

[SeekAndFind]

KEY CONCLUSION:

They are unequal, at least in part, because much of the country’s middle class doesn’t feel the need to accumulate significant wealth. Strong government programs reduce the need for accumulating financial assets.

[TurboZamboni]

A lot of self-righteous Minnesota leftists will not be amused by this.

[hulagirl]

Complacency. Nice.

[BitWielder1]

Once you move up in income wealth, taxes go up significantly which is a strong disincentive.
If you're not in "old money" or very industrious just for the heck of it, you're stuck halfway up.

Communism actually resembles the old feudal system, equality is a sham.
Capitalism for all it's lamented inequality is in reality more egalitarian. There is upward mobility, available for anyone regardless of pedigree.

[Trapped Behind Enemy Lines]

I don’t know precisely how things work in Scandanavian countries. But here in the US the more you tax the wealthy the more they can....

1) Invest in tax free municipal bonds and bond funds.
2) Invest in real estate tax shelters
3) Invest overseas
4) Invest in tax exempt retirement accounts.
5) Set up trust funds for their heirs
6) Establish tax exempt foundations.

Fact is the more you tax the rich, the less money you will collect from them. A simple fact of life which seems to be incomprehensible to most Democrats, lefties, and Occupy Wall Street activists.

[Snickering Hound]

Princess Madeleine is not amused.

[tophat9000]

People foolishly in their thinking disconnect political power from financial wealth..

If you concentrate and centralizes all political power in a top few.. you will inherently concentrate and centralizes all wealth in a top few.

A redistribution of political power equally to the individual (freedom) leads to a natural redistribution of wealth to individual based on there own actions exercising their freedoms.

[Rusty0604]

And in Communism it’s the party leaders that enjoy wealth.

[TurboZamboni]

Stated differently:
Much of the country’s middle class doesn’t have the ability to keep any significant wealth.
Overabundant government programs reduce the ability for accumulating financial assets so why try.

[Chickensoup]

bump

[dfwgator]

[Buckeye McFrog]

Or they followed Nancy Pelosi’s advice to follow their dream, quit their job and become a street mime as the government was picking-up the tab for their health care.