If there’s anything Americans haven’t stopped talking about for years, it’s the economy. Two presidents, changes to the tax code, and even stimulus checks have done little to ease a growing sense of economic dread. A growing economic literature backs this up; for many ordinary people, the American Dream is no longer even within reach. Yet many of these problems lack easy solutions, such as the continuing rise in economic inequality and our struggling healthcare system.
The solution? Follow the example of Scandinavia, whose countries have crafted “one of the best economic and social models in the world,” in the words of Vermont Senator Bernie Sanders. To him and many of his peers, Americans would be foolish not to learn from the “Nordic Model.” While understandable, this hyper-focus on a few Northern European countries ignores the achievements of a plethora of other developed countries. In particular, Ireland, whose recent steps have placed it right behind the Nordic standard. It is first important to understand, however, why the Nordics earned their reputation to begin with.
Scandinavia’s Head-Start
Scandinavia, often referred to as “the Nordic,” consists of the Northern European countries of Iceland, Sweden, Norway, Finland, and Denmark. The Nordic Model, however, is a far more recent development than any Norse mythology. It is an implementation of social democracy that emphasizes both a strong welfare state and broad equality of opportunity. Workers are given generous paid vacations and university is tuition-free, while their democracies routinely rank among the world’s best. The results speak for themselves: Nordic countries are regarded as some of the happiest in the world. On the surface, this seems like a worker’s paradise for many disheveled Americans. It’s important, however, to take a step back. How did the Nordics achieve this? Was it really just their economic and political framework?
In a way, yes … and no. Government programs such as universal healthcare are undoubtedly a result of, and in turn help reinforce, the Nordic Model. Abstract social outcomes, on the other hand, have less to do with the region’s political framework and more with its shared history. Scandinavia has been given unparalleled stability, access to natural resources, and cultural support in its rise to prominence. Its strides toward gender equality, for instance, are undoubtedly impressive, especially with regards to political representation. Historically, however, Vikings were among the most egalitarian societies of their time, with women and the “feminine” highly valued. These values worked in tandem with the region’s aforementioned stability and well-established women’s movements to gradually improve social conditions for women.
Gender parity has remained a core part of Sweden’s governmental strategy for over 3 decades, for instance, manifesting in dedicated government offices, affirmative action programs, and broader social changes. This cultural history allowed women’s rights advocates to take the first step, and from there, a vast institutional framework was built over time. Measures like gender quotas were established gradually, once social acceptance was deemed adequate. Yet elsewhere, countries with otherwise poor gender parity have seen great benefits from the implementation of gender quotas. If the US just copied the Nordics and waited for the “right time” to pass pro-women legislation, it would only continue to fall behind its peers.
The region’s historical wealth is worth a critical look as well. A large share of Norway’s wealth comes on the back of its profitable oil and natural gas reserves, both historically and in the present. Unfortunately, these resources are scarce commodities, inaccessible to large portions of the world. They cannot be relied on forever, and with the looming threat of climate change, pose an increasing threat to the environment. It’s difficult, then, to call this fossil fuel reliance a “model” for other countries to follow.
Even setting these critiques aside, Scandinavia has an even bigger problem: its cultural homogeneity. The region has a striking lack of diversity across the board, from ethnic backgrounds to religious practices. While a lack of immigrants is not necessarily the Nordic’s fault, it raises concerns about the region’s ability to weather globalization and its cultural intermingling. Far-right parties in Scandinavia have gained prominence in recent years, recruiting young people and espousing the xenophobic “great-replacement theory”. While countries like Sweden are still generally progressive on issues of race, their recent struggles in promoting diversity should not be ignored. In truth, it suggests that the region’s consensus-based politics may not be replicable on a broader scale. If the Nordic Model only occurred because of a small community’s near-universal agreement, how can a country as divided as the United States ever hope to copy it exactly? It is these sorts of questions that have inspired some Americans to look elsewhere. While names like Germany and Switzerland are often thrown around, another place is catching up to the Nordics in record time: the Republic of Ireland.
Enter … Ireland?
Despite the recent “Green Wave” of interest in Ireland, plenty of Americans believe that the country is almost unremarkable. To some extent, they’re not wrong. It has fewer people than the Bay Area, and lacks the historical ties to American politics of its neighbors. But given its tumultuous history, the fact that modern day Ireland is borderline-boring is nothing short of a miracle.
Ireland was first colonized by the English in 1169, long before either country resembled its modern state. Their neighbor’s influence would only grow from there, as “Ireland served as a laboratory for the British empire” (Ohlmeyer, 2023, p.10). Yet this was only the beginning, with the Great Famine of the mid-18th century wiping out nearly a quarter of the island’s residents. Even after the country’s independence, the remaining British claim to Northern Ireland would cause widespread political violence during the Troubles.
Ireland, in other words, has had to contend with a deeply imperfect past. The Irish lacked the cultural or economic “headstart” of the Nordics, yet strikingly, are almost on par with their peers. Ireland is within spitting range of Denmark with regards to economic inequality, outperforms Denmark and Finland on life expectancy, and has one of the world’s highest GDP per capita. This is on top of the region’s comparable social services, including generous paid vacation time and strong health outcomes.
Of course, there are areas where the Nordics outshine their Irish peers. The region’s high levels of union membership and unique primary education system, for example, are certainly great achievements. Yet the goal has never been to follow the Nordics to a T; rather, it has been to improve its political and economic conditions by any means necessary. In this regard, Ireland has become a trailblazer in its own right. Their strategic investment in R&D programs allow foreign tech innovators and local startups alike to thrive, while government intervention disperses their positive impacts broadly. For all the hurdles they’ve had to overcome, the immense progress they’ve made should not be overlooked, even if it’s not a 1:1 recreation of the Nordic standard. Given the United States’ dire inequity, promoting egalitarian development in the vein of Ireland feels like an admirable goal, as well as a plausible one.
What the United States can Learn
Ireland and Scandinavia are not the only places in the world with welfare states. Other than the US, the bulk of OECD members have some form of universal healthcare, along with a litany of other basic social protections. These alone, then, cannot explain Ireland’s lead in areas like economic equality.
There are two parts to this equation. First is the region’s recent explosion of foreign investment. Ireland’s highly-educated workforce, combined with the aftermath of Brexit, have made it one of the most attractive destinations for businesses in the EU. Ireland’s low corporate tax-rates, including a recent scandal regarding Apple’s tax breaks, are noteworthy as well. As tempting as it may be to just copy these policies, doing so would be a disservice to the complexities of each region. Historically, the United States’s corporate tax-rates have matched or even exceeded its peers’. Yet this has not stopped it from developing the world’s largest economy and an unrivaled startup culture. The US doesn’t need to attract new businesses, and it’s fair to assume copying Ireland’s strategies may only give marginal returns. The real takeaway from Ireland’s economic boom is how it has managed its influx of capital.
In recent years, the Irish have created one of the most effective tax-benefit systems in Europe. It’s been extremely successful in redistributing income and fighting poverty, preventing disparity between native Irish workers and new foreign entities. Much of this is owed to its focus on social benefits rather than pension spending, the latter of which dominates most other European welfare programs. Ireland also refrained from cutting welfare expenditures, a key help to those struggling during the Great Recession. However, the success of these policies is primarily owed to their intentionality. Ireland’s market-income inequality is among the highest in Europe; without extensive social programs, their post-tax income inequality would suffer the same fate. Ireland is making a conscious choice to redistribute wealth to those in need, not waiting for it to happen “naturally”. In the US, the lack of any equivalent social transfers means that gross and net income inequality are virtually identical. American policymakers would be wise to see the effectiveness of Ireland’s redistributive welfare if they want to decrease inequality here in the States.
There’s another key piece of Ireland that will always set it apart from the rest of Europe: its people. The island’s past turmoil has forced the Irish to build a culture around empathy. It’s why Ireland has consistently ranked among the world’s most generous countries, both socially and financially. It’s also why those who move to Ireland find its people to be unexpectedly warm, even to a total stranger. Even as anti-immigrant sentiment grows in places like Sweden, Ireland has remained firm in its support of foreigners, citing its own history as a hub of emigration. Even once-beloved champions like Conor McGregor have been deplatformed and criticized for espousing far-right rhetoric. We as Americans, on the other hand, have forgotten how to care for our neighbors. Ireland’s desire to help one another is certainly a start to undoing that.
During the ongoing genocide in Gaza, the Irish have remained one of Palestine’s strongest supporters, even more so than the Nordics. The Irish see themselves, and their tumultuous history with the English, reflected in the people of Gaza. They do not, however, strive to only send thoughts and prayers. Through widespread embargoes and financial support, the Irish have made it clear they at least want to do something. The same can be said for many of the country’s policy goals. Sensing the threat of rising inequality, Ireland has taken its influx of foreign wealth and redirected it to its poorest populations. And picking up on changing European attitudes towards immigration, Ireland recognized their positive economic impact and remained an immigrant-friendly destination. Instead of bickering over the means, the Irish only look towards the end, a lesson the US would be wise to learn.
Critics may argue that these results are the result of Ireland’s past, and the cultural resilience that has created, just like the Nordics’ reliance on their shared history. This critique is understandable; Americans can’t expect to change their ideals overnight. 40 years ago, however, Ireland would not have been called “resilient” by anyone. The social practices that have driven their rise to prominence were cultivated, not inherent. And we must not forget the enduring American ethos, either. The US is still a bastion of freedom and progress for people across the world. They see us as not only driven, but restless, ready to work tirelessly for a better tomorrow. Ireland’s imperfect success should inspire us as Americans to answer the call of opportunity and face the pressing challenges of the 21st century. Lest we forget, the United States still has the world’s largest economy. We have the means to achieve Ireland’s outcomes, both politically and culturally, while avoiding some of its biggest missteps.
Perhaps the US doesn’t need to find an “Irish Model” to replace the Scandinavian one. If there’s any lesson to take from the Irish, it’s that there is no silver bullet for socioeconomic growth. Much like the Nordics, Ireland isn’t nearly as ethnically diverse as the United States. Despite its liberal immigration stances, challenges have also arisen in handling influxes of asylum seekers. Even its ongoing housing crisis, too, may sound familiar to the Bay Area’s shortages. Focusing on these alone, however, would be missing the point. The broader pieces of Ireland’s success all have lessons to be learned; pieces to the broader puzzle of fixing America’s troubles.
Right now, the United States needs progress, not perfection, in dealing with its economic woes. Yet as ordinary Americans continue to struggle, many continue to look for answers. The temptation to try and imitate another country’s success is understandable. The United States, however, is unlike anywhere else in the world. Why copy Ireland or Norway when we can do things the American way? If we can combine the best of Ireland, the Nordics, and some of our own flair, a more equitable society seems achievable. Perhaps one day, the “American model” will be seen as a champion of sustainable development. For that day to come, it is crucial that we just do something; be it Irish, Swedish, or American.
Featured Image Source: Department of the Taoiseach
