America is Failing at Capitalism

Photo Courtesy of Sveriges socialdemokratiska arbetareparti

In America, we have a superiority complex. Just ask the kids I grew up with in the U.K. Common assumptions about the U.S. are as follows: everything is bigger, they all worship Walmart, they only eat McDonalds, and they all have guns. However, one stereotype reigns supreme: Americans think they’re the best

The difference in this last stereotype is that it is true. Americans do think that we are the best. How many chants of “We’re Number One” do you hear at sporting events? What about the idea that we are the rulers of the free world, that everyone should live like us? We consider it our duty to spread democracy and capitalism, but are we the best at either of these things? Certainly, we are not the best at capitalism.

In my last article, I wrote about how, as students, we’re indoctrinated into thinking we can’t change the system (read: capitalism). But could we at least improve it? Because other countries are doing it MUCH better. In terms of capitalism, the U.S. is far from Number One. We might even kinda, sorta suck at it.

Take Sweden. A small Nordic country that relies largely on imports (and lacks good weather) kills us in almost every category relating to quality of life. There, life expectancy is almost four years higher than the U.S; there, obesity and diabetes rates are less than half of ours, and they rank #1 in mental health and #4 in happiness (with the U.S. at #30 and #23, respectively).

This is because Sweden has a large welfare state. Welfare, derived from the words “fare well,” is a system of benefits made to help the entire society. The Swedish welfare state stems from legislation passed by the Swedish Social Democratic Party (SAP).

The SAP was founded in 1889, and created a philosophy of “poor relief laws.” They believed that poverty was neither a choice nor something that deserved to be punished and gauged how well their economy was doing based on the quality of life of the citizens. The SAP wanted a better life for all Swedes, and as long as capitalism could achieve this goal, it was allowed to operate freely.

Sweden still has an amazing welfare system today. Some things we don’t have that they do are: free university, free healthcare, 480 days of paid maternity leave, free childcare, and housing assistance. Sweden has far more upward mobility.

So a large welfare state made people’s lives better? Most would say: well, of course. But doesn’t this kill innovation? Don’t higher taxes destroy businesses, kill dreams, and kill the capitalist pursuit of wealth?

Well, that could not be further from the truth. A strong welfare state allows innovation to thrive. It’s actually easier to start and operate a business in Sweden than in America: U.S. News ranks Sweden third on its Open for Business rankings, a list of “market-oriented countries [that] are considered a haven for capitalists and corporations.” The U.S. ranks number 52. Swedes don’t need to fear — or even consider — the possibility that if they start a new business and it fails, they will become unable to feed their families. Swedish citizens know the government has got their back:thus, they are incentivized to try and create.

One may say: “But the Swedes lack freedom!” Do they? Sure, they are more heavily taxed, but they have many freedoms that the U.S. does not have. Freedom from the domination of their employer, freedom from homelessness (freedom to be housed), freedom to create, freedom from fear of starvation. These are all “freedoms” that the U.S. lacks, and freedoms we could gain back if we implement a greater welfare state, one that will drive innovation and take care of its people.

This is how you do capitalism. 

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