Why is Denmark Rich Despite High Taxes?

A look at strength and weaknesses of Danish economy. Why Denmark has the highest tax rate in the OECD, and what it gets from this. Reasons for high growth and which model does it follow.

0:00 Intro
0:38 Reasons for success
4:02 Socialism vs Capitalism
7:42 More to Life
8.29 Immigration

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About

[flehan]

One of the reasons Denmark seems a bit "hostile" against immigrants is the problems many of them cause. They don't want to integrate, and do not respect the culture. Just look at the crime statistics. But they are certainly very interested in the danish welfare system and anything else they can get their hands on for free. When danes have build a society that works well, it's no wonder they don't want others to come and destroy it. In general danes don't mind people coming to the country, as long as they will integrate and contribute to the system. Being such a small country the amount of people trying to get to Denmark can be very overwhelming.

[bjornjonsson]

A well run country where trust in the government is high and EARNED. Denmark just disproves that you can't have high taxes and prosper. Nope, it's all about how corrupt a government is who spends that money.

[AurioDK]

Personal deduction (Personlig fradrag) is never mentioned and has such an impact on lower incomes, add to that residential financial aid (boligsikring) and you are looking at a potential 20% tax rate for a low income family. Taxes in Denmark differ a lot from family to family, all depending on how wealthy you are, how much you owe and your investments.

On a calculated taxation scale I was actually paying more taxes in Portugal than I am in Denmark with roughly the same income.

[coolbanana]

I'm not sure why it's "despite" high taxes.
Better education, healthcare, and support for everyone is good for the economy.
A combination of Denmark and Finland seem to point in the best direction.

[uhorne]

Generally the idea that taxes are bad for the economy and personal wealth, needs to go away. It all depends on how the taxes are used. The stuff paid for with taxes are also stuff you don't have to pay for out of pocket.

[mrsulzer]

Moral cohesiveness and the population looking beyond their own wallets…Sadly lacking here in the UK

[annejeppesen]

It’s a good thing to once in a while be reminded how well we’re doing. It’s too easy to focus solely on the problems and shortcommings

[helleunderlienkristensen]

Lived and worked in the UK for 5.5 years. Returned home and could rent a two bedroom flat for the same price as I'd paid for a room in a shared house in Cambridge. Denmark being ridiculously expensive is a myth we like to perpetrate so we can lower the rate of immigration :'D

[alexroc]

Thank you for your excellent and informative series of videos on economics.
Could you possibly produce a video that shows us exactly how revenue is spent across the UK and how this has changed over the years?

[ThorRavnsborg]

52-56% is the marginal tax rate i.e. what high income earners pay of their last earned money above a certain yearly amount. The average income tax is about 42%.

[anotherelvis]

The Danish income tax rate is comparable to France's and Spain's. The German tax rate is lower, but not that much lower. So this is really a Western European phenomenon.

[LaserHuset]

One thing often overlooked when it comes to Danish taxes is that the cost of living isn't taxed, this means if you only make enough to survive you will pay almost no taxes as your cost of living is deducted prior to taxation
I technically pay 42% in taxes, but once my cost of living is deducted I only end up sending the taxman 25-28% as my income isn't that high

[hanserikkratholmrasmussen]

Because we aim to give every citizen a good life, not just a small percentage of the population. A population with decent individual incomes makes the cash flow. Modern economists know this, but it hasn't reached the American schools yet. And an educated population also has its economic advantages.

[sagaryes]

Denmark is just a well run country with good infrastructure. Everything seems to work and get better when there is found problems. I am from UK but been living in dk 13 years .the highe income taxes are justified when you see what you get in return .love it in dk

[peterp]

Economic freedom is the can have high taxes and still prosper if you have trust worthy institutions which protect individual and property rights and....a high level of economic freedom like it is the case in Denmark.

[thomastully]

My children can go to University for free, My daughter does (Jura) and son will follow on some course and will gladly pay my taxes, Almost no homeless (Britain, Ireland)A corrupt free system and you get what you pay for, From a Irishman (Tramore) here in DK.

[jam]

Loving all the high saturation video of Denmark, lol. What a paradise!

[per]

Dane here, Childcare is not free.and Denmark is a Liberal social democracy not a socialist country as many think.

[janfswedane]

Denmark has extracted oil from the North Sea since the early 70ties..
Total Energies has just refurbed a large gas production rig in the NS....

[larskaminskidk]

Taxes on work in Denmark are around the OECD average