Denmark, the country where people do not want taxes to go down

The well-known phrase that says "money does not make happiness, but calm nerves", applies perfectly

Denmark

, a country that seems high in terms of economic indicators, but also stands out by occupying the podium of the happiest nations in the world. All their monetary "problems" seem trivial from the Argentinian point of view: they need manpower of all kinds, they are worried about the excess of foreign exchange and have to convince their population that taxes must be reduced.

Denmark, with its 5.8 million inhabitants, can put on the table three indicators that arouse the envy of any Minister of the Economy: his annual inflation rate in 2018 was 0.7%; Its gross domestic product (GDP) per capita is 52,832 USD and its unemployment rate is 4,8%.

Otto Brøns-Petersen, a Danish economic badyst, believes that the happiness of his compatriots is probably due to his high income level. "In addition, a high level of trust also seems to increase life satisfaction and, as the Danes are quite confident, this could also play a role here," he said in an article. that he wrote for the Cato Institute.

A visit to the Danish capital, Copenhagen, lets you see the careless and relaxed air of its citizens, known as "Latinos du Nord", to whom the only thing that changes their mood (and which is a subject for them) is the little sun they have for a large part of the year. From an economic point of view, they have resolved everything: education, health, safety and transportation.

Fortunately, this time, the "photo" was taken in the last days of spring this year, while the sun bathed the flirtatious capital (several fires in its history). Therefore, it was possible to experience first-hand how the Danes fill the terraces of the bars; they flood Nyhavn, the new port that has become the typical local postcard; how they improvise beaches at the edge of their multiple cbads or how their green parks are congested.

The Danes are so concerned that they occupy the first places in the United Nations' clbadification of happiness (
this year, they were relegated to second place by Finland and they do not like that at all) who invented a word to describe "little moments of happiness". This word is "hygge", pronounced "huga" and is used to describe a good meal with the couple, a meeting with friends or a good time in the comfort of the house. "It also helps to cope with the days when darkness reigns," said Alejandra Meza, a Chilean tour guide who works in the capital.

According to Martín Krause, professor of economics at

University of Buenos Aires

(UBA), the Danish economy, like that of most Nordic countries, has become strong before the adoption of the welfare state model. "That is to say, they first created wealth, then began to distribute it in the form of benefits, not the other way around," says the specialist.

This social state model is mainly based on sectors such as
wind energy (exports 85% of its wind turbine production, Vestas being the world's leading company); that of maritime logistics (with the giant Maersk in the lead) and agricultural production (large exporters of pork).

Krause also notes that in the Institutional Quality Index of the Freedom and Progress Foundation, of which he is a participant, Denmark is in second place and one of the top three in 15 years. "Normally, the general view is that the political institutions are of high quality (it appears in the 4th rank of the rankings), but when you look at the quality of its market institutions, you see that it is 6th, that is, it is not the same. that is to say, economic freedom, "says the academic.

This is seen among its citizens. Nicolás Sciotti, an Argentinian who has been living in Denmark for five years, said: "Politics, insecurity and corruption are not common topics as in Argentina, there is a sense of tranquility and great confidence. Taxes with a smile, even if they are high, because they trust the leaders, the state helps you in case you become unemployed and you care socially, "he says.

"Taxes" is precisely the key word and one of the bases on which the Danish economy rests. With a tax burden of 46%, Denmark is one of the countries with the highest tax burden, but crazy as it may seem in these latitudes, the Danes do not want to be lowered. Of course, this charge then refers them back to social services and the benefits of a state whose public spending accounts for 52% of GDP.

Even in the face of the will of its citizens, the Danish state knows that it must reduce taxes to accelerate growth and encourage work (it should reduce tax by 3 000 million per year until 2025) .

Krause points out that the country is heavily taxed, but not so much by companies, which pay less tax than in Argentina (for example, the income tax is 22%, so 35 "They have a social agreement that makes them happy: high taxes with excellent public services (transport, education, security and health)," said the professor.

Of course, it is clear to the traveler very soon that this country is not cheap. A kilogram of calf, for example, costs 85 Danish kroner ($ 548); one kilogram of cheese, DK 74.5 (USD 484.86); a dozen eggs, DK 23.15 (USD 151.20); one kilo of oranges, 18.07 Danish kroner ($ 118); one kilo of chicken bads, 56.20 ($ 366), to name a few products from the supermarket. Meanwhile, a beer in a bar can be worth DKK 61 (US $ 400) and a meal for one DKK 300 (US $ 1959).

Another of his challenges is to capture the job because employees are missing out on everything from electricians to plumbers, to engineers and architects. Sciotti says that you can reach Denmark today and that tomorrow you will work. It seems incredible that this is happening in a country where the minimum wage is 2580 euros (about 123 800 dollars); As a result, the government is trying to change the image of hostility towards immigrants that the Danes have acquired.

A "sword of Damocles" suspended over Denmark, which was one of the largest kingdoms in the world, but which gradually lost portions of territory until it was reduced to its current small size, is "Dutch Disease". It consists of an excessive inflow of foreign exchange (which may be due to the discovery of an exportable natural resource or foreign direct investment) that appreciates the local currency and reduces the competitiveness of the remaining exports (which may result in the closure of industries and the fall in employment). For that, your monetary authority juggles.

With a strong Viking past, which tourists can enjoy by traveling just 30 kilometers by train from Copenhagen to Roskilde, the former capital of this city, Denmark is always an example to mention whenever we talk about the management of An economy. Meanwhile, far from thinking about their pockets, Danes are enjoying the sun (vital for people who need vitamin D supplements, due to the lack of sunshine for months) and making the most of their hygiene time.

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