Feeling the Bern? You'll Want to Read This First

Bernie Sanders has made an unexpectedly strong challenge to Hillary Clinton by promising to create a European style “socialist” state in the United States. Sanders raised at least $40 million in the month of March even though he largely doesn’t have a chance.

Sanders vision of a larger government with expanded social programs certainly has an undeniable appeal to millions of Americans. However, before they “feel the Bern”, they should know that there are some trade offs.

Daniel Mitchell of the Cato Institute writing at the blog of the Foundation for Economic Education (FEE) says that Americans enjoy a much higher standard of living than Europeans. In fact, the wealthiest European country, Germany, enjoys a lower standard of living than 38 American states.

Here’s what Mitchell says is holding Europe back:

I’m simply making the modest — yet important — argument that Europeans would be more prosperous if the fiscal burden of government wasn’t so onerous. And I’m debunking the argument that we should copy nations such as Denmark by allowing a larger government in the United States (though I do want to copy Danish policies in other areas, which generally are more pro-economic liberty than what we have in America).

Mitchell also makes a comparison between Europe resource poor city-states such as Hong Kong and Singapore, both of which are wealthier than the United States.


Long-run growth matters. Hong Kong and Singapore, for instance, used to be poor jurisdictions. But free markets and small government have produced decades of strong growth, and now these places are among the richest places on the planet. Richer not only than Europe, but even more prosperous than the United States.

It’s not all bad for Europe. Mitchell actually praises some Scandinavian economic policies as more pro free market than the United States. However, he also notes that Scandinavians living in the U.S. do much better economically than their compatriots back home.

Before you “feel the Bern”, realize that it could make you more poorer in the long run.

Source: AAN