Does Socialism Work?

"Socialism dosn't work"

The Facts

‘Socialism doesn’t work’ is a common statement, but many Americans associate certain policies with socialism when the public good would be more apt. The countries with the world’s highest living standards aren’t choosing between pure capitalism and pure socialism—they’re combining the best of both. And the results speak clearly.

The Details

What Works in the Real World

The countries Americans often call socialist aren’t actually socialist. Denmark, Sweden, and Norway are market economies with strong safety nets—economists call them social democratic systems. They consistently rank highest globally for happiness, prosperity, and press freedoms. Their secret? They figured out how to make capitalism work for everyone by emulating what America pioneered in the 1930’s and 40’s—but then subsequently forgot.

These aren’t anti-business countries either; they’re pro-worker countries. Germany requires worker representation on corporate boards and dominates high-end manufacturing. France provides extensive healthcare and vacation time while remaining a major economic power. They’ve harnessed market innovation while providing strong worker protections and effective regulations that reduce wealth inequality, all policies that simultaneously reduce crime.

Meanwhile, America’s long periods of minimal government oversight gave us company towns, child labor, and financial crashes like 2008. The countries thriving today aren’t rejecting markets, they’re making them work better by demanding greater accountability.

We Already Know This Works Here Too

America’s most popular programs follow this exact model. Social Security ended mass poverty among seniors. Medicare provides healthcare security for tens of millions. The interstate highway system created massive economic growth. These aren’t radical experiments, they’re proven investments that made capitalism work better, yet they were all decried as ‘socialist’ by the status quo.

Our strongest economic growth happened during the post-war decades when tax rates on the wealthy were highest and social programs most robust. The hands-off Gilded Age created incredible fortunes for a few alongside dangerous working conditions and poverty wages for everyone else.

The Hidden Cost of “Low Taxes”

Here’s what gets missed: Americans actually pay more than people in most developed nations when you count what we pay privately for services other countries provide publicly.

Such as healthcare costs. After paying into the system through progressive taxation, Norwegians face just a $250 annual fee for all their healthcare—no premiums, no surprise bills. OECD data shows that accounting for all costs, Norway spends under $6,500 per person while we spend roughly $9,000, all while they get better results, such as longer life expectancy.

Add up healthcare premiums, college tuition, childcare, and retirement savings that other countries provide through taxation, and Americans are actually paying significantly more while getting less. We don’t have a low-tax system, we have an inefficient one that forces individuals to pay privately for services that work better and cost less when purchased collectively.

The Real Choice

Countries with stronger safety nets consistently show lower crime, more social trust, and greater political stability, all conditions that actually help businesses thrive. This is why most modern economies blend market innovation with social protections.

No system is perfect, and reasonable people can debate the right balance, and some may still feel that taxes take away freedom. Yet no one is truly free if they can’t afford the options: 40% of Americans say that they’ve avoided doctor visits to cut costs.

The real choice isn’t between extremes—it’s about learning from what works and building an economy that delivers both prosperity and security.

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