The Nordic nations have become role models in government and economic systems. The U.S can attempt to replicate these economic and government models to increase efficiency and development. However, replicating the economic and political models of the Nordic countries has advantages and demerits.
The Nordic economic models would help the U.S cut down on public debt. America is deeply in debt due to poor debt policies yet the Nordic countries dealt with their debt crisis once and for all in the 1990s. This would be done by reforming the public sector to increase state responsiveness and efficiency. The model would allow the government to reduce the amount portion of the GDP it spends and reduce corporate taxes. The U.S budget deficit would also reduce from the current 7%. The provision for public goods would be universal. Private and public service providers compete on the same platform. The Nordic model promotes transparency in government where politicians because the public has access to official government records. The government would also increase efficiency through e-government like in Sweden.
However, implementing the model used in Nordic countries would lead to dire consequences. The lack of intervention to protect major companies in the economy would lead to the decline of many companies in case of a financial recession. Furthermore, the system promotes unemployment since employers can sack employees due to loose employment laws. The program where the government trains and supports the unemployed would be costly since the American unemployed population is so big. The public spending in relation to the GDP of the country would still be undesirable like in the Nordic nations, making it unsustainable. Entrepreneurs would move to other economies due high taxation systems hence; bloating the economy.
Therefore, the economic and political model of the Nordic countries has been successful and should be emulated by the American government. However, only the desirable attributes should be implemented. There are some aspects of the Nordic model that hinder economic growth and leads to inefficiency.
References
The Economist. (2013, February 02). The next supermodel. Retrieved February 18, 2013, from The Economist: http://www.economist.com/news/leaders/21571136-politicians-both-right-and-left-could-learn-nordic-countries-next-supermodel
