President of Iceland Ólafur Ragnar Grímsson: Social Welfare Benefits the Free Market

The president of Iceland explains the secret to the Nordic countries' recent economic and social success. Social welfare programs such as free access to education and healthcare have proved to be a boon to the free market economy.

Icelandic President Ólafur Ragnar Grímsson recently visited Big Think to discuss a number of the successes and challenges relevant to his small island nation. These are issues both resonant in the present day as well as looking ahead toward the future. A few weeks ago, Grímsson tackled climate change, obviously a challenge moving forward rather than a success (at least, not yet). As for today, the topic is one that has contributed to the progress and prosperity of the Nordic countries: Denmark, Finland, Sweden, Norway, and Iceland. 


Each of those nations, says Grímsson, has a competitive free market economy augmented by a robust social welfare system. These programs ensure that "everybody, irrespective of their income and class, gets the same right to education, to healthcare, and to equal treatment in an economic way." In countries like the United States, social welfare and economic progress are sometimes seen as opposing goals. As Grímsson explains, social welfare in the Nordic states is integral to economic progress:

"This coexistence of a social welfare society, with a right to education and healthcare equally distributed throughout society, is one of the pillars of our economic and business success. So you cannot find any business organization in any of the Nordic countries, which is advocating that we should decrease this social welfare system. On the contrary, the prominent business leaders of our countries realize that the evolution of this social welfare system in terms of education and healthcare is one of the major reasons why the Nordic businesses have been globally so successful and why our market economies have grown so aggressively."

Grímsson tells how an established system dedicated to caring for the sick and educating every child allows the business community to focus on what they do best -- business.

"The Nordic formula, not just the Icelandic one, but also from Norway, Sweden, Finland and Denmark, has created what The Economist, the preeminent weekly economic newspaper in the world, deemed a few months ago perhaps the most successful economic model in the last few decades."

Finally, Grímsson notes that his American friends who decry the Nordic system and employ words like "socialist" as pejorative terms are completely missing the point. All you have to do is look at Iceland's economic record, as well as the economies of the other Nordic states, to realize that the rewards of this particular social framework transcend all outdated and myopic biases.

"The evidence is absolutely clear that to provide everybody with a right to education and healthcare is a formula for economic and business success."

For more on social welfare's role in the successful Nordic free market economy, watch the following clip from President Grímsson's Big Think interview:


President Grímsson's is co-founder of Arctic Circle, a non-profit, non-partisan open assembly focused on Arctic issues.

LinkedIn meets Tinder in this mindful networking app

Swipe right to make the connections that could change your career.

Getty Images
Sponsored
Swipe right. Match. Meet over coffee or set up a call.

No, we aren't talking about Tinder. Introducing Shapr, a free app that helps people with synergistic professional goals and skill sets easily meet and collaborate.

Keep reading Show less

What’s behind our appetite for self-destruction?

Is it "perverseness," the "death drive," or something else?

Photo by Brad Neathery on Unsplash
Mind & Brain

Each new year, people vow to put an end to self-destructive habits like smoking, overeating or overspending.

Keep reading Show less

Can the keto diet help treat depression? Here’s what the science says so far

A growing body of research shows promising signs that the keto diet might be able to improve mental health.

Photo: Public Domain
Mind & Brain
  • The keto diet is known to be an effective tool for weight loss, however its effects on mental health remain largely unclear.
  • Recent studies suggests that the keto diet might be an effective tool for treating depression, and clearing up so-called "brain fog," though scientists caution more research is necessary before it can be recommended as a treatment.
  • Any experiments with the keto diet are best done in conjunction with a doctor, considering some people face problems when transitioning to the low-carb diet.
Keep reading Show less

Douglas Rushkoff – It’s not the technology’s fault

It's up to us humans to re-humanize our world. An economy that prioritizes growth and profits over humanity has led to digital platforms that "strip the topsoil" of human behavior, whole industries, and the planet, giving less and less back. And only we can save us.

Think Again Podcasts
  • It's an all-hands-on-deck moment in the arc of civilization.
  • Everyone has a choice: Do you want to try to earn enough money to insulate yourself from the world you're creating— or do you want to make the world a place you don't have to insulate yourself from?
Keep reading Show less