Bruce Bawer writes about the high cost of living in Scandinavia in We’re Rich, You’re Not. End of Story.:
Dining out is just too pricey in a country where teachers, for example, make about $50,000 a year before taxes. Even the humblest of meals — a large pizza delivered from Oslo’s most popular pizza joint — will run from $34 to $48, including delivery fee and a 25 percent value added tax.Not that groceries are cheap, either. Every weekend, armies of Norwegians drive to Sweden to stock up at supermarkets that are a bargain only by Norwegian standards. And this isn’t a great solution, either, since gasoline (in this oil-exporting nation) costs more than $6 a gallon.
After dealing with Danish prices for a few days in Copenhagen, we couldn’t figure out how Danes made ends meet. It turns out that the “rich” Northern European nations aren’t so rich:
After adjusting the figures for the different purchasing powers of the dollar and euro, the only European country whose economic output per person was greater than the United States average was the tiny tax haven of Luxembourg, which ranked third, just behind Delaware and slightly ahead of Connecticut.The next European country on the list was Ireland, down at 41st place out of 66; Sweden was 14th from the bottom (after Alabama), followed by Oklahoma, and then Britain, France, Finland, Germany and Italy. The bottom three spots on the list went to Spain, Portugal and Greece.
Alternatively, the study found, if the E.U. was treated as a single American state, it would rank fifth from the bottom, topping only Arkansas, Montana, West Virginia and Mississippi. In short, while Scandinavians are constantly told how much better they have it than Americans, Timbro’s statistics suggest otherwise. So did a paper by a Swedish economics writer, Johan Norberg.
Contrasting “the American dream” with “the European daydream,” Mr. Norberg described the difference: “Economic growth in the last 25 years has been 3 percent per annum in the U.S., compared to 2.2 percent in the E.U. That means that the American economy has almost doubled, whereas the E.U. economy has grown by slightly more than half. The purchasing power in the U.S. is $36,100 per capita, and in the E.U. $26,000 — and the gap is constantly widening.”
The one detail in Timbro’s study that didn’t feel right to me was the placement of Scandinavian countries near the top of the list and Spain near the bottom. My own sense of things is that Spaniards live far better than Scandinavians. In Norwegian pubs, for example, anyone rich or insane enough to order, say, a gin and tonic is charged about $15 for a few teaspoons of gin at the bottom of a glass of tonic; in Spain, the drinks are dirt-cheap and the bartender will pour the gin up to the rim unless you say “stop.”
In late March, another study, this one from KPMG, the international accounting and consulting firm, cast light on this paradox. It indicated that when disposable income was adjusted for cost of living, Scandinavians were the poorest people in Western Europe. Danes had the lowest adjusted income, Norwegians the second lowest, Swedes the third. Spain and Portugal, with two of Europe’s least regulated economies, led the list.