Same country. Four sets of rules.
Each system is a complete bundle of taxes, wages, public services and ownership, applied to the same country and the same people. The name is only a label: the equations are identical for all four, and every value can be changed in the Lab.
- A
Market-led capitalism
Lower taxes and transfers, narrower collective bargaining, a lower minimum wage and mostly private ownership.
Open in the Lab - B
Regulated social-market economy
Somewhat higher taxes than today, wider collective bargaining, stronger unemployment benefits and a higher minimum wage, with mostly private ownership.
Open in the Lab - C
Social-democratic mixed economy
Higher, more progressive taxes, bargaining that covers most workers, generous benefits and public services, and larger public and cooperative stakes.
Open in the Lab - D
Collective-ownership economy
Large public (45%) and worker-cooperative (35%) shares of capital, near-universal bargaining and the highest health and education spending.
Open in the Lab
The rules side by side
Every policy setting in each system, next to Verdania today. Arrows mark settings above or below today's.
| Policy | Verdania today | A · Market-led capitalism | B · Regulated social-market economy | C · Social-democratic mixed economy | D · Collective-ownership economy |
|---|---|---|---|---|---|
| Taxes | |||||
| Top income-tax rate | 35% | 30% (lower than today) | 42% (higher than today) | 52% (higher than today) | 45% (higher than today) |
| Basic income-tax rate | 22% | 18% (lower than today) | 24% (higher than today) | 28% (higher than today) | 28% (higher than today) |
| Corporate tax rate | 25% | 20% (lower than today) | 25% | 25% | 20% (lower than today) |
| Capital-income tax rate | 20% | 15% (lower than today) | 25% (higher than today) | 30% (higher than today) | 30% (higher than today) |
| Capital-gains tax rate | 15% | 10% (lower than today) | 20% (higher than today) | 30% (higher than today) | 30% (higher than today) |
| VAT rate | 12% | 10% (lower than today) | 16% (higher than today) | 22% (higher than today) | 18% (higher than today) |
| Work and wages | |||||
| Minimum wage (share of median wage) | 45% | 35% (lower than today) | 50% (higher than today) | 55% (higher than today) | 60% (higher than today) |
| Collective-bargaining coverage | 35% | 15% (lower than today) | 55% (higher than today) | 80% (higher than today) | 85% (higher than today) |
| Unemployment-benefit replacement rate | 40% | 25% (lower than today) | 55% (higher than today) | 65% (higher than today) | 60% (higher than today) |
| Public services and transfers | |||||
| Public health spending | 4.5% of output | 2.5% of output (lower than today) | 5% of output (higher than today) | 6.5% of output (higher than today) | 7% of output (higher than today) |
| Public education spending | 4.2% of output | 3.5% of output (lower than today) | 4.5% of output (higher than today) | 5.5% of output (higher than today) | 6% of output (higher than today) |
| Public infrastructure investment | 3% of output | 2% of output (lower than today) | 3% of output | 3.5% of output (higher than today) | 5% of output (higher than today) |
| Guaranteed minimum income (share of baseline median) | 20% | 5% (lower than today) | 15% (lower than today) | 25% (higher than today) | 30% (higher than today) |
| Ownership | |||||
| Cooperative / worker-owned capital share | 3% | 2% (lower than today) | 5% (higher than today) | 10% (higher than today) | 35% (higher than today) |
| Public ownership of capital | 10% | 5% (lower than today) | 10% | 15% (higher than today) | 45% (higher than today) |
The economy after ten years
Engine results for year 10, each compared with keeping today's policies, with the range across uncertain assumptions.
Recalculating…
Who gains and who loses: compare them on social justice