What is Social Democracy?

By Mark Calkins

March 21, 2020

Social democracy is not socialism. We do not want socialism. It doesn't work well at providing a healthy economy or a pleasant place to live.

So what is social democracy? Social democracy is a system that supports social and economic intervention to promote social justice and equal opportunity within a capitalist-oriented mixed economy.

This type of economic model is what Denmark, Sweden, Norway and Finland have. These Scandinavian countries have proven that it works and works well. The happiest countries in the world as ranked by Forbes in March 2020 are Finland (#1), Denmark (#2), Norway (#5) and Sweden (#7). Clearly, they have proven this model.

So what are the characteristics of social democracy?

• Commitment to representative and participatory democracy
• Higher taxes similar to what Eisenhower (a Republican) had during his presidency
• Development of social programs that promote greater education and equal opportunity for all
• Smart regulation of the economy for the common good of the people
• Maintaining capitalism with a slightly managed and regulated market economy
• Guaranteeing private ownership except for a few things of essential public services under public ownership
• Promotes free international trade
• Provides a way for immigrants to become American citizens by demonstration that they are good citizens

Implementing social democracy does not require moving away from capitalism. It does require that we add some regulation for the common good of Americans.

Social democracy provides:

• A healthy environment
• Work towards minimizing climate change
• Providing good health care to all Americans
• Delivering education opportunities for all young Americans
• Minimizing corporate money in government to influence towards the good of the few
• Striving to eliminate mass unemployment
• Still providing an incentive for citizens to better themselves

This Freakonomics podcast covers this topic very well in an objective approach. The podcast reviewed Norway. In the 1930's, the income inequality was as bad as the U.S. today. Now, it is much less. At the same time, the upward mobility has increased for many of its citizens during that time.

It is time to reconsider our pure market economy model. It has lead to the worst income inequality ever experienced in American history. It has created a government for the rich while mostly ignoring the common American.