The Nordic States Have The Highest Tax Rates and The Lowest Debt to GDP Ratios In Europe

This article in The Guardian, provides some information on the Italian economy. I linked to the article, however, because it contains an excellent graph that shows the debt to GDP ratios for all of the countries in Europe. Not surprisingly, Greece and Italy have the highest ratios of debt to GDP. What may be surprising to many is that the Nordic countries, which invest heavily in public safety nets, have the lowest debt to GDP ratios in Europe. They are substantially below the European average. These countries have high tax rates, strong public welfare programs and strong economies. They do so without incurring unaffordable public debt. The US and Europe should be looking at the Nordic states for examples of good governance and a more broadly shared prosperity. That is unlikely in the US. We are told that high tax rates and social welfare programs retard economic growth.