Something’s Rotten In Denmark—-Namely, Professor Krugman’s Praise For Its High-Tax Social Democracy

He wants readers to believe that the lesson from Denmark is that there are no adverse economic consequences when nations impose a big welfare state and high taxes.

But that’s not what Danish economic history tells us. As with other Nordic nations, Denmark became a rich nation when government was relatively smalland taxes were modest. And we know from historical data that economic performance significantly weakened after the fiscal burden of government was increased.