Danish Capitalism in the 20th Century: A Business History of an Innovistic Mixed Economy (Palgrave Studies in Economic History)

This book outlines the origins of Danish Capitalism and prosperity, from a poor and devastated minor state in the 19th century to a consolidated universal mixed economy welfare state at the end of the 20th century. The book argues that firm-based innovation drove Danish prosperity and redistributive capacity. It is a comprehensive but manageable examination of the institutions and choices that shaped a highly innovative and wealthy nation. The book relies on history and economic theory, presents commonly accepted narratives and theories, and contributes new explanations. Therefore, the book also traces both antecedents and the current state of 20th-century capitalism in Denmark and particular outcomes and critical institutions such as firm age, the labor market, and pension schemes. The book will be of interest to academics in business history and economic policy, as well as policymakers and all those interested in mixed economy studies. Dr. Stefan Kirkegaard Slk-Madsen holds a Ph.D. in economics from Copenhagen Business School (CBS). He has been a visiting researcher at UBC Sauder School of Business and is an external lecturer at CBS and Aalborg University. He has published in peer-reviewed journals and presented his academic work at several international conferences. He has an industry background as a tech entrepreneur and in operational private equity and has consulted for many companies on issues such as M&A, pricing, and sales. He is currently Head of Education at the economic think tank CEPOS and hosts a popular podcast series on the history of economic thought, EconRoots Foreword Preface Acknowledgements Praise for Danish Capitalism in the 20th Century Contents List of Figures 1 Defining the Twentieth Century and Danish Capitalism Individualist Methodology as a Historical Method Telling a Grand National Narrative as an Individualist Methodologist Boundary Conditions and Social Change When Was the Twentieth Century in Denmark? What Is Danish Capitalism? Danish Capitalism as a Case for Innovism The Mixed Economy: Balancing of a Regulatory State and the Free Market 2 Antecedents to Danish Capitalism in the Twentieth Century The Ancient Danish Folk Danish Downfall in the Nineteenth Century The Collective State Model The First Constitution The Freedom of Trade Act and Impacts of the Danish Freedom Reforms The Conservative Counter-Movement Conclusion 3 Danish Economic Policy and Institutions in the Twentieth Century: From Laisse Fair to a Mixed Economy? Towards a New Dominant Institutional Logic The Important Scandals and Life Before the Welfare State Banking Crisis and Shift of Sentiments The English Inspiration The Constitutional Change and the Emergence of Redistribution as the Raison D'être of the State The Failed State and the Welfare State The Final Breakthrough: The National Pension The Good Times That Changed Everything The Ungovernable Welfare Sector The Too Late and Too Incomplete Reforms The Dream of the Planned Welfare State The Wall New Public Management: The Introduction of Misunderstood Business Thinking Reforms and Labor Supply Conclusion 4 Competing Explanations for Danish Prosperity The Consensus Explanation The Common People Hypothesis The Lost Opportunity Paradigm Trust and Danish Capitalism The Role of a Homogeneous Population The Role of Religion The Romerian Explanation Conclusion 5 The Industrial Denmark in the Twentieth Century War and Competition—Prelude to the Twentieth Century States Within the State Innovation and the New Schools of Thought The New Origins and Conclusion 6 The Methods and Institutions of Twentieth Century Danish Capitalism The Danish Model and Flexicurity Challenges The Cooperative Movement Industrial Foundation Ownership Købmandskab: A Danish Approach to Selling? Institutionalized Daycare Extensive Pension System Conclusion 7 Danish Capitalism in the Twenty-First Century: Legacy and Changes in the First Two Decades The State of the Kingdom in 2021 Three Key Macro Shifts The Return and Stagnation of Economic Freedom The Welfare Coalition From an SME Economy to a “Mittelstandmark” A Shared Reform Agenda and a Paradigm Shift Municipality Reform II—The Difficulty of Public Efficiency The Possible Paradigm Shift? The Value War; Immigration Skeptics and Activist Foreign Policy The Export Economy The Value War, Immigration and Activist Foreign Policy Housing, Real Estate and Crime The Rebirth of Entrepreneurship? Lobbyism and the Twenty-First Century State Conclusion Concluding Remarks The Damned Victory Did Denmark Max Out? Why Did Danish Capitalism Foster so Different Companies that Proved Globally Competitive? How Were These Companies Impacted by—and Did They Impact—Danish Capitalism? To What Degree Does the Case of Denmark Give Evidence to Innovism as the Main Explanation for Prosperity as Observed in Modern Times Index