Why Big Government Works in Scandinavia.
Yes, I know the Nordic model isn’t entirely translatable. But it still dispels the notions that big government *in principle* is always bad. It all depends on how that government is run and formulated, not so much it’s size. For example:
In the United States, unions are sector-specific, in the Scandinavian countries, unions are strong, centralized and multi-sector. This way, unions can take a far broader view of things as well as reduce the number of unions with which a company has to deal. In addition, in the Scandinavian nations, unions have a place on the boards of public companies, something that’s unheard of here in the US. By doing that, unions, through their elected board representatives, have a say in how a firm is run. Imagine an airline handled in such a manner. Rather than rising fuel prices causing a fight between management and its various unions, the union representatives become part of the planning stage, to address the issues which can hurt the company before it becomes unmanageable. The broad view enabled by such an arrangement makes the union part of the company’s biggest strength as they understand the underlying economic impact of corporate decisions.
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