The Nordic countries are recognized as the countries with the smallest income gap, the highest welfare level and the highest level of wealth in the world. The Nordic welfare state model has certain reference value and enlightenment for China to achieve common prosperity. However, we should be soberly aware that there is a huge difference between China’s national conditions and those of Nordic countries. There is an essential difference between the road of common prosperity in China and that of welfare state. We can’t simply apply some institutional arrangements and practices of Nordic welfare states. In the process of promoting the realization of common prosperity, we should prevent the following tendencies: First, the social welfare standard is too high, which leads to the problem of “eating from the same big pot” and reduces the overall economic efficiency; Second, the social welfare expenditure grows too fast, exceeding the financial burden; Third, raise wages by a large margin and sharply increase the cost of enterprises; Fourth, the income tax rate is too high, which discourages labor enthusiasm and investment confidence; Fifth, taxing the rich is too strict, resulting in a large amount of capital flight. We should give full play to the advantages of the socialist system, adhere to the people-centered development concept, adhere to the principles of steady progress, step by step, and do what we can, and do our best to continuously improve the realization of common prosperity for all Chinese people.

Editor: Zhong Yao、Zheng Yifan

From:Shanghai Journal of Economics.2023.No.1.