People vote with their feet, and also the U.S. is not Sweden

Two pieces about Anu Partanen’s book The Nordic Theory of Everything: In Search of a Better Life say much about the blindness of some writers: “Stockholm Syndrome: Spotify threatened to abandon Sweden if the government didn’t address over-regulation and sky-high taxes” is poorly titled and more interesting than the title suggests, and so is “What’s So Special About Finland?” Neither says much about the book itself but both together say much about the U.S. media interest in Nordic countries.

Following the Nordic model would make large parts of the U.S. population worse off; that’s why people are moving away from Nordic-model cities and states and towards inexpensive, laissez-fair cities and states.

Let me elaborate. Partanen and most media people are not normal and have not normal needs, desires, and willingness to pay for big-city amenities. But most people aren’t willing to pay for those things that’s why sprawly cities, especially in Texas, are the ones that’re experiencing the fastest population growth in the U.S. People choose to move to them much more so than New York or L.A. or a handful of other media capitols. Partanen and her husband live in NYC as writers. I get the appeal, but they’re relatively low-earners in the second-most-expensive city in the country, and New York is in many ways least like the rest of the country. Partanen even says:

First of all, the taxes are not necessarily as high as many Americans think. One of the myths I encounter often is that Americans are like, ‘You pay 70 percent of your income in taxes.’ No, we do not. For someone who lives in a city like San Francisco or New York City—where you have federal taxes, state taxes, city taxes, property taxes—the tax burden is not very different [than the tax burden in Finland]. I discuss my own taxes in the book and I discovered this to be true: that I did pay about the same or even more in New York than I would have paid on my income in Finland. I’ve talked to many Nordics in the U.S. who say the same thing.

So SF and NYC are already paying these crazy taxes… and apparently not getting much in return. Why then should the rest of the U.S. seek to emulate them? When I’ve said that I think Seattle is a much better value than NYC, in part because of crazy tax issues, people often respond, “So you don’t like public schools or fire fighters?” But Seattle, Austin, Nashville, and other similar cities seem to have those public services too, without anything like NYC’s cost of living. So the solution to high taxes and not-great services in those cities is to pay even more? If so, I’m not too surprised most of the US does not want to be more like Scandinavia (or SF).

To be fair, it would be interesting to see what happens if SF, NYC, and LA disempowered municipal unions and liberalized their zoning codes, both of which would lower costs substantially. For now, though, we’re seeing all three cities systematically drive people out. They’re choosing places that are not very Scandinavian.

Partanen and her husband are not very representative of the overall American experience. It’d be interesting to read a story about Finnish people who move to relatively inexpensive suburbs, don’t spend an overwhelming amount on housing, and basically like their lives. A European friend of mine, for example, has a sister who was born in a medium-sized European country and is basically doing that in Florida, and she seems to like it.

People who live in NYC are self-selected to be obsessive weirdos (who also often want to write books). Which is fine. I’m one of those people but I’m also aware that I’m atypical.

In short, revealed preferences show that most Americans prefer a non-Nordic model. They also show why state-level taxation is better on average than federal-level taxation, since at least people who don’t like state-level taxation regimes can easily move to another state. Score one for the Exit, Voice, and Loyalty world.

One response

  1. Pingback: Briefly noted: The Almost Nearly Perfect People: Behind of the Myth of the Scandinavian Utopia — Michael Booth « The Story's Story

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