This short video clip from Margaret Thatcher was accurate many decades ago and it is even more accurate today.

Indeed, I should have included this video in my series about various nations (France, Italy, the United Kingdom, Canada, Greece, and Japan, United States, Spain, and Belgium) that could trigger a global fiscal crisis.

Though, to be technical, I should point out that the problem in all those nations is redistributionism rather than socialism.

In any event, Thatcher was right. And here’s a Chuck Asay cartoon that makes the same point.

I’m addressing this issue today because of a Washington Post editorial about the social disarray in Europe.

Here are some excerpts, focusing on the mess in France.

France’s political crisis is colliding with a mathematical one. The government has made expensive commitments that its economy isn’t growing fast enough to keep. Hundreds of thousands of people took to the streets again this weekend to fight for larger slices of a pie that is not getting bigger. …In France, unions are asking for fatter government pensions and paychecks, along with increases in housing assistance, family allowances and a minimum-income benefit. Young people have their own 10-point wish list, which student organizations estimate would cost 10 billion euros ($11.2 billion). It includes 250,000 additional places in public higher education and an extra 2,400 euros ($2,688) a year for students receiving government grants. Before politicians can redistribute wealth, somebody has to create it. France has neglected the second half of that equation. …The government is running a budget deficit of more than 5 percent of gross domestic product. Public debt is approaching 120 percent.

Given what I’ve written about France, none of his should be a surprise.

But here’s the part of the editorial that deserves a lot of attention. It seems Denmark is becoming a role model.

French politicians…would do well to consider how Denmark has managed its expansive welfare state. To start, Danish leaders…voted to gradually raise the retirement age from 67 to 70 by 2040. …Its public debt is less than 30 percent of GDP, and the government ran a budget surplus. Denmark…demonstrates that fiscal responsibility, a generous safety net and a thriving market economy can coexist. Indeed, the safety net ultimately depends on the economy that finances it.

I think the editorial should give even more praise to Denmark.

It’s not just that Denmark has a responsible welfare state rather than an irresponsible welfare state. The country is actually a case study of the benefits of obeying my Golden Rule, which is a far more important goal.

Here’s a chart showing the progress that has been achieved since 2012.

Denmark’s data would be even more impressive if I used final 2025 data instead of estimated 2026 data.

When I asked ChatGPT to compare Denmark, France, and the United States, it used 2025 data and showed that Denmark is almost exactly halfway between France and the U.S.

Hopefully, the estimate for a larger spending burden in 2026 is just a statistical blip and not a sign that Denmark is returning to French-style profligacy.

I’ll close with some good news and bad news.

On the positive side, the United States has a huge fiscal advantage over France and a big fiscal advantage over Denmark.

On the negative side, Denmark is evolving in the right direction while the United States is suffering fiscal deterioration.

And since Denmark has a very robust system of personal retirement accounts and the United States has a decrepit tax-and-transfer Social Security system, I wonder whether Denmark might eventually have a better fiscal system than America.