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Wednesday, February 24, 2010

FACTS ABOUT SCANDINAVIA

My wife and I just returned from a trip to Scandinavia. It is a land of beautiful scenery, castles, palaces and forts, medieval towns, fjords and waterfalls, extensive forests and densely cultivated areas, magnificent architecture and gorgeous friendly people. We enjoyed two full weeks in Denmark, Sweden and Norway. It was a hectic pace adventure with lots of walking, sometimes under light rain and cool temperatures. One of our most delightful vacations ever and, best of all, it was a learning experience. Here are some facts that we uncovered by listening to our tour director, talking to lots of natives in the street, from Internet web sites and from personal experience. These are my particular observations; you can draw your own conclusion.
The official government system in Scandinavia is called "constitutional monarchy with a parliamentary system". Technically, it is classified as a "welfare state", which means that the government "takes care of you". Of course, to be able to do that, you have to take care of the government. This is accomplished by heavy taxes. Simply put, the more you make the more taxes you have to pay. The purpose of this policy is the "redistribution of wealth". In other words, to level the income of all the citizens.
There are no poor people; but there are no rich people either. The only difference between this system and communism is that in communism everybody is poor and nobody is happy; and in a welfare state, people are neither poor nor rich, and almost everybody is happy. This ideology has been in operation for over 100 years, so everyone was born under it and there is no option for anything else. They have no alternative but to be happy about it.
Average residents in Denmark pay first their income labor market contribution of 8%, other special contributions of 1% and income tax of 59%. In all of Scandinavia there is the "value added tax" (VAT) of 25% imposed on anything that you buy. Besides the VAT, all goods pay "point taxes", which differs from article to article, and no normal resident has any grasp of this type of tax. So when a resident in Denmark has bought the everyday necessities, his tax has increased to some unknown level of more than 70%. Our guide informed us that she makes $60,000.00 a year and has to pay about 75% in taxes, taking home only $15,000.00, but she is very happy with the system, because all the "free" benefits (education from kindergarten to college, health care, maternity leave (up to 52 weeks) retirement, etc. I asked her: "Wouldn't it be better to keep the remaining $45,000.00 and pay yourself for all these things and still have extra money to buy a car?" She responded with silly smile, "Why would I want a car for?"
Ownership of cars in Denmark and Sweden is very difficult, to say the least. The government discourages it by having an excellent and economic transportation network. Most people own two bicycles: one to go from their homes to the railroad station, take the train to the city where another bike is waiting for you to take you to work. After work, the routine is reversed. And they are very happy about this practice because they have been taught that it is good for the environment and the body.
A compact car costs about $30,000.00 and is first taxed with the VAT of 25%. Then the car sales tax is 180% on top of that. So the car costs $91,000.00. Besides, there is another yearly fee, according to the weight, plus insurance. Gasoline is more than $9.00 a gallon, even in Norway where they produce oil. Parking garages charge $9.00 an hour.
Home ownership is hereditary as very few people can afford to buy a home. Apartments are very scarce also, taking up to 20 years to find one. When a child is born, the parents sign him up for an apartment with the hope that he'll get one when he becomes and adult.
Average salary for teachers and bookkeepers is $65,000.00; Doctors make $120,000.00 to $200,000.00. But remember, the more you make, the higher the tax. It can go up to 92% of your income! Retirement is obligatory after 40 years of service, with 60% of your salary or a minimum of $1,000.00 a month. A retired person that makes $1,000.00 a month usually stays home at all times, as he can't afford to go to a restaurant or any other entertainment. Very few people save money in the banks. Some don't do it for fear of being penalized even more.
Labor union membership is obligatory by law and cost about $200.00 a year. Minimum wage is $25.00 an hour. A worker cannot be fired after one year employment, works 35 hours a week and is entitled to six weeks paid vacation. Nobody works overtime because this could lift him to a higher tax rate; besides, a person that works long hours has little chance of a promotion. Companies look for employees that take time for doctor's appointments, to take their son to a football game or any other personal problems. This is the person that has a big chance for a promotion because he "has a life".
The majority is unhappy about their universal health care system. If a woman develops breast cancer, it could take her up to 6 months to see a specialist, the same amount of time to be operated and another 6 months to start treatments. The waiting time for a hip replacement or knee operation depends on your age. The older the person, the more he has to wait and some never make it to the operating room.
Scandinavians do not watch their diet. They eat a lot of whole milk, cheese, butter, pork, ham, bacon, lard drippings and pastries; but there is no obesity. They keep themselves slim with all the daily biking exercise. After 40 or 50, though, their skin turns rough and much wrinkled for their age, due to the wind, sun and cold weather that they encounter while biking. Nobody goes to health spas or gyms.
Expressways don't look at all like ours. There is none with more than two lanes each way, and extremely narrow. When a road crosses another there is no overpass but a circle, where all the traffic enters, very slowly, and then continue on their route.
Denmark is "flat as a pancake" and the roads are lined up with small and big plots of grain fields. The land from the bus looks like a giant shag carpet in light green or beige, dotted with houses and barns painted dark red. Sweden is about the same. The minute that you cross to Norway you can see the difference. A lot more cars on the roads and in the cities. There are more than 100,00 privately owned boats in Norway, which indicates that it is a richer nation compared with Denmark and Sweden. The prices are also the highest in Europe, probably in the world. It is undoubtedly, the most beautiful Scandinavian country with magnificent mountains, waterfalls, river and lakes, deep green forests and cultivated lots. And let's not forget the incredible fjords! A famous phrase is that Norway is a feast for the eye...and a nightmare for the pocket.
VARIOUS: Gay marriage is permitted by law. Abortions are encouraged and paid by the government. Cancer and heart disease are the main causes of death. There is no Thanksgiving Day and Christmas Eve is more festive that Christmas Day itself. 85% of the citizens belong to the Lutheran religion, but very few people attend church. No bags are provided at the stores; you have to bring your own or pay 6 or 7 cents for one. A simple dinner for two with beer (no dessert) cost us $82.00 in Tivoli, Denmark. A 6 ounce steak cost $42.00 in Bergen, Norway. A hamburger with fries is $25.00. In Denmark a soda costs $4.00 and a beer $6.00. In Norway is $8.00 for a soda and $12.00 for a beer.
I'd like that you now close your eyes and envision a life without a car (if you own one you'd probably use it in Sundays only) making the same salary as a paper delivery boy and paying $20.00 for a hot dog and $9.00 for a gallon of gasoline. Now open your eyes and tell me how you feel by living in a country that is not a "welfare state", that provides a lot of "free" benefits. Yes, please, OPEN YOUR EYES!


LOOK AT MY PHOTOS - CLICK ON "SCANDINAVIA by J. Alvarez."

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