After reading today’s Crikey I felt I couldn’t let Guy Rundles article pass with comment.

Whilst Scandinavia does fly in the face of some of Friedman’s prescriptions. Milton’s explanation of why is quite reasonable.

Scandinavians are culturally industrious and Scandinavia is ethnically homogeneous (although this is changing). Their industriousness means they can afford the welfare state and being homogeneous they are politically comfortable with the consensus necessary to maintain the welfare state. People are generally happier to pay the high taxes that maintain welfare if the recipients are family members or people like them, its human nature I guess.

Wisconsin and Minnesota actually bear out Milton’s hypothesis. Over the last 50 years these states have had a net immigration of minorities attracted by jobs and the relatively generous (compared to the rest of the US) welfare available in those state’s. Not surprisingly these states now resemble the rest of America in their unemployment. Time will tell if Scandinavia will follow the same path.

If Guy could name a country that has successfully maintained both high immigration and high welfare then he would perhaps have a point!