Friday, August 23, 2019

Memes: Distinguishing Fact from Fantasy


Memes: Distinguishing Fact from Fantasy

This came out of a short Facebook discussion about the Danish "edenic" life which many think they know from various memes. My reaction is that we actually may think we know things based on memes, but the reverse is sometimes true. This is no news to those who read my posts, which I try to make fact based, not opinion, and at the same time, when it is my opinion, it’s made clear.

        The subject here was a set or responses defending Denmark, which needs no defending as far as I’m concerned. It’s a lovely little nation with beautiful people and a great culture. The issue becomes my response to the fact that many leap upon the perks of Danish social practices and ignore the cost of same. 

First of all, medical care has no place in this discussion, simply because, contrary to what many believe, single payer healthcare is simply superior with regard to cost but requires an attitude adjustment in the minds of many ignorant Americans. The Danes have “free” health care, but it isn’t really “free.” Denmark’s “free” health care, provided to all residents, is funded through taxes. ... Apothecaries (pharmacies) are privately owned, but doctors’ visits and hospitalization, including tests, treatment, follow-up care, and some medication, are fully covered. There is no blank check, however,  for prescriptions; Danes pay for them out of pocket, along with dentistry and physical therapy. The Danish health care system is not cheap (being paid from the much higher taxes) but compared to the average US cost per capita it is little more than half the cost. According to OECD's Health Data, Denmark's health cost per person, paid from the much higher taxes, public and private, was $3,512. (it’s higher now, he data is from several years ago).

I’m also not being critical of Danish family values, although their racial issues are significant. I say this having inched my way through a throng in Copenhagen’s main square several years ago. It was an Islamic festival of sorts and many “blondes” "observing" seemed less than enthralled. Since then there are those, (too many) like one older Dane whose opinion is: “These Muslims want to keep their own culture, but we have our own rules here and everyone must follow them.”  This has led to forcing primary school children to observe and celebrate Christian holidays against they and their parent’s wills. Not Socialist Eden.

         What follows is my response to a post critical of my original which was a meme critical of some things Danish with the caveat that there were, indeed, serious inaccuracies which was why memes such as that and others should be taken critically. (my original point!)

       “As I said and thought I had posted, but it didn’t show: I was making the point that memes should be taken with a grain of salt, since they are meant to shape opinions vice convey facts.

It is true that the suicide rate in Denmark is much lower than the meme states, down a lot over the last ten years, at which time it was relatively high. Also, the US suicide rate is higher than the meme implies. As I said considering memes as factual is a slippery slope. 

Now for some real data without emotional interpretation:

Home ownership is lower in Denmark than in the US. Many homes are passed by inheritance, since single family real estate prices tend to be about 3 times that in the US for equivalent square footage!  

Car ownership is about half on a per capita or a household basis. This should be no surprise, since the cost of initial registration is usually greater than the price paid for the vehicle.

Added to this is personal income tax rate in Denmark, which should hit 55.8% of gross income by the end of this quarter, according to global macro models and analysts’ expectations. In the long-term, the Denmark Personal Income Tax Rate is projected to trend around 55.00 percent in 2020.

Understand, this means the working Dane should expect their paycheck to reflect that more than half of gross earnings will never reach their bank account. 

Allow one more example, since a meme has circulated regarding a young Danish McDonalds employee, and claims she makes: $20 (USD) hourly, which is true, but, at a 58% tax rate, she sees $11.60 in her check. (or at least it equates to that).  So, with McDonald's averaging $ 9.35 hourly in the US (and even Florida heade3d for $15 and paying far more in some places,  the difference in net is far less. Now let’s consider how that money is spent.   

I’ll do it by list, compared to US average, which is easier to follow:

1 br. Urban appt. (Rental, not purchase) – about the same

Utilities – 49% higher

Food at market – 33% to 87% higher

Clothing /shoes – 77% higher

Local purchasing power – 40% lower

Movie – 65% higher

Beer – 200% higher !!!

Restaurant meals – 97% higher

Real estate – 300% higher!!!

Annual CPI increase - 51% higher

Transportation ticket – 97% higher

It takes little imagination to see the fallacies in many of the meme claims. These are real numbers. Another interesting factoid is that in many cases, Mortgage is listed as 44% of income. No responsible US lender would do that.

Unemployment in the Danish 15-65 age group is 24%, about 6 times the US rate, but this should be tempered with the fact that there are many in the lower end of the range who are in school full time. On a comparable basis with the US, factoring out probable students 15-18, the rates are about equal.

Oddly enough (it really isn’t odd, but predictable) while Danish gross average incomes are second highest among OECD countries, net or disposable income is far down, in the bottom third, actually lower than Mexico and Portugal at 28th of the 37 OECD countries and with an annual growth rate of 1.3%. Simply for comparison, the US is 13th at 2.3%. Norway is 16th with a growth rate of 2.1%, This reflects the almost punitive Danish tax rate and higher cost of living.

On another “Meme” note, yes, Denmark is very “green,” now producing nearly 50% of its electrical power from wind. What memes rarely state is that the cost per kilowatt-hour in Denmark has risen steadily as more wind generation is brought online.

 Between 2010 and the end of 2018, the overall household price for electricity in Denmark increased by approximately 4.53-euro cents per kilowatt-hour to 31.23 euro cents. In plain speak, Americans use, per capita more than twice as a much electrical power per capita as Danes and pay 84% as much. Norway on the other hand, another Scandinavian semi-socialist nation has the advantage of producing most of their power from Hydro, exporting power in most recent years. This year, with abnormally low rainfall, has caused a slight price jump to almost 1/6th of Danish prices. Norwegians are also highly taxed, but even though they use about 4 times as much power per capita, they pay less than 65% as much for it.

 Of course all this, like the Green New Dealers, overlooks (due primarily to self-inflicted  gross ignorance) the fact that a zero carbon footprint (and cheaper per kwh than wind) power source is nuclear) By the way, it remains the only US major industry with no industry related deaths!  

The things lauded as “free” in the memes extolling Denmark aren’t free at all. They are paid for by all citizens. Not saying it isn’t morally sound, just saying stop saying these choices made at the national level are free.    

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