Megan McArdle ponders the Nordic model, and gets pretty much everything wrong.
- She indulges in the oft-repeated and almost-never-substantiated claim that "things that work in small homogeneous countries don't work in big, heterogeneous ones". The Nordics are applying standard textbook rules of taxation. There's nothing exceptional about that.
- Germany is cited as evidence for the above point. Germany's problem is inflexible labour markets, not heterogeneity. Flexible labour markets are part of the Nordic model.
- The US really is exceptional when it comes to tax policy: it's the only OECD country that doesn't have a broad-based consumption tax. Alone among rich countries, discussions about US tax policy are framed as higher taxes = slower growth.