Successful nations like Sweden and the Netherlands can combine capitalism with strong social safety nets because their citizens trust their government and each other. The U.S. is polarized and fails to implement similar policies not due to economic impossibility, but a critical deficit of this foundational, invisible trust.
Societal trust functions like critical infrastructure: it's invisible until it fails, at which point catastrophe occurs. While nations like Sweden and the Netherlands reinforce this trust, America is ignoring the cracks, leading it toward instability and echoing the societal erosion seen in places like the Weimar Republic.
Contrary to the belief that welfare states stifle ambition, Sweden's strong unemployment benefits and worker mobility encourage risk-taking. This, combined with government R&D and accessible capital markets, has created a hyper-dynamic tech ecosystem that produces a disproportionate number of Europe's top companies.
The Dutch model uses a heavily regulated private insurance sector and managed competition to achieve top-tier healthcare outcomes for all citizens at half the per-capita cost of the U.S. This provides a viable third path beyond the polarized American debate between a state-run system and the current free-market approach.