The Lutheran Imaginary That Underpins Social Democracy

Scandinavian social democracy is increasingly upheld as an alternative that could reform capitalism. The Nordic Model produces income equality, low-conflict politics, and happy people. When half of young Americans express that they would prefer “socialism,” they generally mean to live in a society that provides for its citizens as the Nordics do. Such aspirations are complicated by how social democracy can be viewed as a secularized form of Lutheranism, the Protestant creed that the Nordic region embraced in the 16th century. Lutheran norms and values carried into the modern era and made possible social democracy's two distinguishing features: fascist corporatism and socialist redistribution. A strong state facilitates statist individualism, which empowers individuals vis-à-vis employers, parents, and spouses. The outcome could be cross-culturally salient, as it brings people closer to our species' fission-fusion baseline. Yet in the modern environment, only Nordics seem to have a cultural imaginary that makes compelling the politics that drive such high levels of both productivity and egalitarianism. The region's storytelling reflects this Lutheran past and is used to negotiate modern adaptations. A better understanding of social democracy could help prevent that demands for “socialism” motivate a turn to actual socialism.

Getting to a feasible income equality

Income inequality is known to have negative impacts on an economic system, thus has been debated for a hundred years past or more. Numerous ideas have been proposed to quantify income inequality, and the Gini coefficient is a prevalent index. However, the concept of perfect equality in the Gini coefficient is rather idealistic and cannot provide realistic guidance on whether government interventions are needed to adjust income inequality. In this paper, we first propose the concept of a more realistic and ‘feasible’ income equality that maximizes total social welfare. Then we show that an optimal income distribution representing the feasible equality could be modeled using the sigmoid welfare function and the Boltzmann income distribution. Finally, we carry out an empirical analysis of four countries and demonstrate how optimal income distributions could be evaluated. Our results show that the feasible income equality could be used as a practical guideline for government policies and interventions.

Wealth and preferences for redistribution: The effects of financial assets and home equity in 31 countries

How does wealth affect preferences for redistribution? In general, social scientists have largely neglected to study the social effects of wealth. This neglect was partially due to a dearth of data on household wealth and social outcomes, and also to greater scholarly interest in how wealth has been accumulated rather than the social effects of wealth. While we would expect household wealth to be an important component of attitudes toward inequality and social welfare policies, research in this area is scarce. In this study, the relationship between wealth and preferences for redistribution is examined in cross-national global and comparative perspective using data on 31 countries from the 2009 wave of the International Social Survey Programme (ISSP), the first wave of that study to include measures of wealth. The findings presented compare the effects of two types of wealth—financial assets and home equity—and demonstrate that there are differences in effects by asset type and by redistributive policy in question. Financial wealth is more closely associated with attitudes about income equality, while home equity is more closely associated with attitudes about unemployment benefits. Moreover, while the upper categories of financial wealth have the largest negative effects on support for income equality, it is the middle categories of home equity that are most strongly associated with opposition to unemployment benefits. Effects also differ by country, but not in patterns that theories of comparative welfare states nor political economy would adequately explain.

Dynamic services, district magnitude, and the trilemma of the service economy

Advanced welfare countries have faced a mix of policy constraints regarding employment growth, income equality, and budget discipline in managing the challenges of deindustrialization, often dubbed as the trilemma of the service economy. Yet, puzzlingly enough, there are some welfare countries that could choose policy options outside of these policy constraints in their responses to deindustrialization. This article argues that the source of this derestricting capacity can be found in the size of electoral district and the level of development in dynamic service sectors. Using the Service Economy Trilemma Index (STI), the author propounds that the expansion of dynamic services in the economy has differential effects on the combined performance in employment, income equality, and budget discipline conditional on the district magnitude. The findings of this article show that countries with large electoral districts and well-developed dynamic service sectors are better able to derestrict policy constraints in the age of deindustrialization.