I’ve always wondered why Denmark has had a higher per-capita income (approximately 30% higher) than Canada’s. [1] [2]
I imagine that at least part of it that is Canada is still a resource extraction economy: oil, gas, agriculture and now, housing – and we haven’t moved very far up the value chain.
I think one other underappreciated point is that Danes prioritize and will culturally pay a premium for Danish products and experiences. This creates an internal economy with firms much higher up the value chain than you’d expect for a country of its size, and a customer base willing to foster and sustain those companies – and pay a premium to acquire their goods – regardless of how small (or large) they are. This even extends to vacations. Unlike Canadians – who’ll travel to the US or the Caribbean and essentially build up those economies – Danes spend a lot of their time in Denmark itself, recycling their hard-earned dollars and growing the internal economy.
Interesting. Perhaps in addition to leaking too many people to other countries our “buy it from whomever at the cheapest price” is beggaring our economy in the long run as well.