studiodekadent Posted February 3, 2017 Share Posted February 3, 2017 The US is also a Social Democratic/Mixed Economy country. There's a substantial degree of Economic Fascism in the US too. The US is not a free market paradise. It is MORE free market than Continental Europe but not anywhere near laissez-faire. What metrics are you using to establish Germany as "doing better" than the US? GDP per capita? Median income adjusted for Purchasing Power Parity? Growth rates? Job creation rates? In addition, Economic Fascism CAN result in very fast economic growth; the Asian Tiger model for instance (also Japan). No one would argue that nations CANNOT develop without full laissez-faire (I don't think any nation historically did) and no one would argue that anything short of complete laissez-faire makes development impossible. Social Democracies don't have the economic calculation problem like full-on socialist economies do. What makes one country grow faster than another? There are a huge number of complex policy variables which all ultimately impact growth rates and some are more impactful than others. But from what I know, Germany and Western Europe in general is extremely anemic in terms of economic growth and job creation. I'd say labor market rigidities and regulations are more damaging (in growth terms) interventions than interventions in at least some other areas. The short answer is that you can't just "put economies on a spectrum" of "more free to less free" (economic freedom is multidimensional/multivariate) and then presume that every economy with a similar "level" (in net terms) of economic freedom will have exactly the same growth rate. Link to comment Share on other sites More sharing options...
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