Is The Netherlands Socialist or Capitalist? - Amsterdam Hangout (2024)

The Netherlands is one of the most populated and smallest countries in Europe. It is also a monarchic country that unlike other monarchies, all its powers are controlled by the elected party. However, are we talking about a socialist or a capitalist?

The Netherlands is definitely more of a socialist than a capitalist country. Besides having a free market economy, being open-minded and tolerant, the Netherlands has a strong welfare system, regulating the minimum salaries and the maximum one, taxes, education and many social measures.

Is The Netherlands Socialist or Capitalist? - Amsterdam Hangout (1)

We associate capitalism to the extreme and origin of capitalism like the United States and socialism to the creators of socialisms and countries like China. Like everything, there are many greys, not all is black and white. The Netherlands is definitely more of a socialist country because of all the social measures it takes, do you want to know which ones?

Socialism in the Netherlands

First of all, it is worth saying that the Netherlands is NOT a socialist country but it tends more to socialism than to capitalism. It can be considered the mildest capitalism there is or the most open-minded socialism there is.

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The whole idea of socialism is the Government intervening in all instances of the society, the intervein in private business, public education, regulation of the health care system, etc.

Therefore, we can say that like most Nordic countries, the Netherlands is a democratic socialist country because of all the interventions and control the Government has over the citizens, yet all the freedom of choice, freedom of trade and freedom of ideology.

Democratic Socialism

The Netherlands is one of the wealthiest countries in the world with one of the 20 best economies. This small piece of land has been like this since its creation during the growth of trading in the Golden Ages. With the exception of certain periods of general historic decretion, the Netherlands has been always on top of the ranking and has been able to build from scratch a society with a lot of social benefits and regulations that mostly benefit its citizens.

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We can definitely observe all of these benefits or regulations in the daily life of the Netherlands: besides being a rather expensive country to live in, how is it possible that the level of well-being and acquisition is so high?

Even though the Netherlands and especially Amsterdam is expensive, mostly for tourists, it is not so much for locals: if you don’t go out all the time and you don’t do as many activities as you do on a holiday.

Dutch citizens have different legislations, support and measures like the minimum wage and so on:

Salaries

In the Netherlands, the minimum wage is established for all kinds of jobs and for ages. The older you are, the more you get paid. The younger you are the less you get paid: the idea is that you have more experience in your field and more responsibilities. If you are younger, the State wants you to keep studying and have a degree so it doesn’t encourage young people to work fulltime.

The Dutch Government offer information about what is the minimum salary since you turn 15 and you can legally work until you are 21 or older, per day, per week and per month. They also determine the minimum and maximum amount of hours, etc. Up to today, the minimum salary in the Netherlands is 1.635,60 euros per month.

Besides this measure, there are many other, more Government rules, that apply to other spheres.

Health System

The Health System in the Netherlands is a mix of capitalism and socialism in a way: you are entitled to choose whatever health care you want, (it normally costs around 100 euros per month) and you can add as many different services as you want. The health system implies:

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  • You HAVE to have health insurance if you live in the Netherlands, but you can also ask for Zorgtoeslag (health insurance help) and the Government will cover most of it.
  • You don’t need to have your kids insured, that is covered inside the adult one.
  • You can choose what doctor you want to go to.
  • If you need any special treatment not covered by your insurance you can declare it on your taxes and they will give it back to you.

Taxes

Now, talking about the health system, let’s talk about taxes. You do not only get your taxes back for extra care not covered by your health insurance help but also for other matters.

Salaries grow every year and so do taxes. However, these are genuinely retributing the citizens who pay them. Citizens pay for the goods the standard tax of 21%, however, companies pay between 16.5% and a 22.5% depending on their yearly income (either if it is under or over 200.000 euros ).

Taxes also work for financing another type of helps the Government gives its citizens, another type of socialism measure:

  • Huurtoeslag: Government help to provide you with some extra money if your rent is too high in comparison to your salary. More here.
  • Zorgtoeslag: same version, but for healthcare.
  • Kinderdagverblijf: public daycare help for Amsterdammers. More here.
  • Kinderopvangtoeslag: for child benefit if you become a father and you have a relatively low income. More here.
  • Kindergebonden budget: Extra children benefits for school expenses.
  • Kinderbijslag: Children allowance, for another type of help, here.

Education

Some of the above-mentioned Government funds are also for educational purpose. In general, obligatory education in the Netherlands is free and only when it comes to the university you will have to pay for it.

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In the case of uni, each uni has its own program and you can check DUO for all the conditions, but you are always entitled to pay the lowest tuition fee (with Government help, of course) and to get a loan for university tuition.

If you are planning on studying in the Netherlands, the same case as for Dutch citizens applied to you if you are an EU-citizen. If you are not, or if you want to know more about the tuition fee system, read here.

Transportation System

Another characteristic of the Netherlands that I believe it is a bit more oriented to socialism than to capitalism is the public transportation: it is not a cheap one and even less free, but every single part of the public transportation from the whole country belongs to the Government, which means they establish prices, schedules, etc.

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This is one of the examples of big companies that belong to the State in order to control prices and have a monopoly of something that it will end up being used by citizens inevitably.

Socialism vs. Capitalism

As we can observe, the Netherlands has a lot of Socialist characteristics and it is undeniable the control the Government has over so many aspects of life in the Netherlands, in this case, for good. However, there are different aspects of Dutch society that would be more relatable to capitalism: among these, the tolerance and open-mindedness.

Same-sex marriage

This is definitely one of the main aspects that show the open-mindedness and tolerance of the whole Dutch society: on December 21 of 2001, Queen Beatrix of the Netherlands signed the first law to allow what back then was thefirst same-sex marriage law in the world.

The whole LGTBQ+ community in the Netherlands is big and strong and it is definitely a more capitalist approach.

Tolerance: Freedom of Choice

Following the idea of the first example, the same idea of the approval of the first bill for same-sex marriage could be the tolerance: this characteristic is more commonly observed on capitalist societies.

Tolerance in the Netherlands can be observed in many aspects of society: tolerance of religion (now even allowing but to promote and encourage the construction of mosques and madrasas), tolerance for sexual orientation, tolerance of immigrants, refugees and their needs to adapt to a new country and even the allowance for them to live permanently in the Netherlands, etc.

All in All…

The Capitalist Characteristics we can observe in these decisions, socially, economically and culturally speaking are based on the Capitalist concept of:

  • Competition (on certain levels only)
  • Freedom of Enterprise (in most cases)
  • Profit Motive
  • Freedom of choice: of sexuality, religion, education, etc.

The Socialists Characteristics we can see in the country that influence it too in a, socially, economically and culturally level are based on the socialist concept of:

  • Government helps on Wealth Distribution (scholarships, Government help, free schools, minimum salary wage…)
  • Natural Resources belong to all the Dutch citizens
  • Command Economy with partial control of the salaries, economy, entrepreneurs, maximum taxes of companies, general taxes, etc.

All in all, the Netherlands is a country on its own that has taken certain characteristic from both ideological models to create a wealthy, tolerant and stable community that consists of citizens with over 180 different cultures that create the beautiful and amazing country we now live in.

Is The Netherlands Socialist or Capitalist? - Amsterdam Hangout (7)

Micaela Zaslabsky

My name is Micaela and I am an Argentinian student. I came to do my Erasmus here in the Netherlands and I fell in love with this country. Two years later I am living in Amsterdam, discovering more about the culture I love and enjoying everything this city has to offer.

Is The Netherlands Socialist or Capitalist? - Amsterdam Hangout (2024)

FAQs

When did the Netherlands become a socialist country? ›

In the 1860s a socialist movement began to develop. Although the socialists were aided by the foundation of the First International and of the first Dutch trade unions, united in the Algemeen Nederlands Werklieden Vereniging, a socialist party was not founded until 1881, when the Social Democratic League was founded.

What is the socialist Party in the Netherlands? ›

The party labels itself as socialist, and has also been described as social-democratic. In its manifesto of principles, it calls for a society where human dignity, equality and solidarity are most important. Its core issues are employment, social welfare and investing in health care, public education and public safety.

Which countries are socialist? ›

Marxist–Leninist states
CountrySinceParty
People's Republic of China1 October 1949Communist Party of China
Republic of Cuba24 February 1976Communist Party of Cuba
Lao People's Democratic Republic2 December 1975Lao People's Revolutionary Party
Socialist Republic of Vietnam2 September 1945Communist Party of Vietnam

What is the economic system of the Netherlands? ›

The Netherlands has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation. Netherlands is a member of the European Union (EU).

Did capitalism start in the Netherlands? ›

The Netherlands was one of the pioneers of capitalism in the Middle Ages, giving rise to the spectacular Dutch Golden Age while ushering in an era of unprecedented, long-term economic growth across Europe.

Which country is capitalism? ›

Download Table Data
RankCountryIndex of Economic Freedom - Heritage 2021
1Singapore89.7
2New Zealand83.9
3Australia82.4
4Switzerland81.9
76 more rows

What political party is Amsterdam? ›

The major political parties are the PVV, D66, and VVD.

What is the difference between communism and socialism? ›

The main difference is that under communism, most property and economic resources are owned and controlled by the state (rather than individual citizens); under socialism, all citizens share equally in economic resources as allocated by a democratically-elected government.

What is the communist Netherlands called? ›

In 1935 the party changed its name to Communistische Partij van Nederland (Communist Party of the Netherlands; CPN), to express its allegiance to the Netherlands and Dutch institutions.

Which countries are socialist vs capitalist? ›

Communist countries, such as China, North Korea, and Cuba, tend toward socialism, while Western European countries favor capitalist economies and try to chart a middle course. But even at their extremes, both systems have their pros and cons.

What countries are not capitalist? ›

As of 2020, only Laos, China, Cuba, and Vietnam claimed to follow the principles of socialism as dictated by Marxist and Leninist theories. More often, however, it is difficult to label countries as solely capitalist or socialist.

What is a true socialist country? ›

A socialist country is a sovereign state in which everyone in society equally owns the factors of production. The four factors of production are labor, capital goods, natural resources and entrepreneurship. In a socialist country, people account for individual needs and social needs.

What is Dutch capitalism? ›

Dutch "merchant capitalism" was based on trading, shipping and finance rather than manufacturing or agriculture and marked the transition of the Dutch economy to a new stage.

What is the economy like in Amsterdam? ›

The economy of the Netherlands is, according to Forbes, the 15th largest in the world as of 2022 in terms of gross domestic product (GDP). Its GDP per capita was estimated at $72,973 in the fiscal year 2023, which makes it one of the highest-earning nations in the world.

What is the Dutch economic problem? ›

Dutch disease is a concept that describes an economic phenomenon where the rapid development of one sector of the economy (particularly natural resources) precipitates a decline in other sectors. It is also often characterized by a substantial appreciation of the domestic currency.

What made the Dutch so wealthy? ›

In the 1960s, the Netherlands experienced a vast increase in its wealth after discovering large natural gas deposits in the North Sea.

What attracted people to Amsterdam? ›

People go to Amsterdam for a variety of reasons. The city has a rich history and culture and is home to some of the world's most famous museums. It's also a great place for nightlife, with plenty of bars and clubs to choose from. And of course, the city's famous red light district is always worth a visit.

Why did the Dutch become so wealthy? ›

Taking advantage of a favorable agricultural base, the Dutch achieved success in the fishing industry and the Baltic and North Sea carrying trade during the fifteenth and sixteenth centuries before establishing a far-flung maritime empire in the seventeenth century.

Why capitalism is better than socialism? ›

Capitalism affords economic freedom, consumer choice, and economic growth. Socialism, which is an economy controlled by the state and planned by a central planning authority, provides for a greater social welfare and decreases business fluctuations.

What is todays capitalism called? ›

capitalism, also called free market economy or free enterprise economy, economic system, dominant in the Western world since the breakup of feudalism, in which most means of production are privately owned and production is guided and income distributed largely through the operation of markets.

Is Amsterdam a liberal city? ›

Amsterdam is the font of liberalism, in both its senses. Tolerance for free thinking and free love make it a place where, in the words of one of its mayors, "craziness is a value." But the city also fostered the deeper meaning of liberalism, one that profoundly influenced political and economic freedom.

Is the Netherlands a liberal or a conservative country? ›

The Netherlands has a long liberal political tradition.

Is Amsterdam a friendly city? ›

Locals are known for being friendly and most do speak some English. Generally, Amsterdam locals are willing to chat and help you find your way through the city. Amsterdam is not a dangerous city but in the high peak tourism season of summertime, you still want to stay on your toes.

What are the 3 types of socialism? ›

Socialist ideologies
  • Utopian socialism.
  • Scientific socialism.
  • Communism.
  • Marxism.
  • Anarchism.

Is Denmark a socialist or capitalist country? ›

Denmark is far from a socialist planned economy. Denmark is a market economy."

Does communism equal socialism? ›

Is Communism a Form of Socialism? While related, socialism and communism are different, Socialism, for instance, seeks to bring equality to the means of production to the working class. Communism takes this a step further and revolutionizes both aspects of production and consumption.

Are the Netherlands a good place to live? ›

The Netherlands offers expats a high quality of life, with a low crime rate and friendly locals. However, as with any foreign country, it also has its own rules, regulations, and processes, which can be difficult for expats to get used to.

Why is the Dutch government not in Amsterdam? ›

Amsterdam is only capital again since 1983

The reason: after the reorganisation by the Congress of Vienna around 1815, parts of Belgium and the Netherlands were reunited. Out of respect for the Belgians, Amsterdam was removed from the constitution as the capital city.

What is someone from the Netherlands called? ›

Over time, English-speaking people used the word Dutch to describe people from both the Netherlands and Germany, and now just the Netherlands today.

Who benefits from socialism? ›

Pros of socialism

A welfare state which provides a minimum basic income for those who are unemployed, sick or unable to work maintains a basic living standard for the poorest in society and helps to reduce relative poverty.

Can a country have both socialism and capitalism? ›

Mixed Economies

Most counties have a blended economic system that includes elements of both capitalism and socialism. In many socialist countries—like Sweden, for example—there are still private businesses as well.

Which European countries are capitalist? ›

There are now a total of 16 European countries that are economically freer, i.e. more capitalist, than the United States, such as Switzerland, Ireland, Estonia, Luxembourg, Denmark and Sweden.

Is USA a complete capitalist country? ›

The U.S. has a mixed economy, exhibiting characteristics of both capitalism and socialism. Such a mixed economy embraces the free market when it comes to capital use, but it also allows for government intervention for the public good.

Is USA capitalist or non capitalist? ›

The economy is controlled by individual people, not by the government. The United States is a capitalist, market economy.

Is Sweden a capitalist country? ›

In the 1960s, the situation changed. Sweden began redistributing wealth, and by the mid-1990s, the economic model was struggling. It was at this point when entrepreneurs and many other wealthy citizens began leaving Sweden. Today, many view Sweden as socialist, but capitalism in Sweden is more common than it seems.

Has the United States ever been a socialist country? ›

Unlike in Western Europe, Australia, and New Zealand, a major socialist party has never materialized in the United States and the socialist movement in the United States was relatively weak in comparison.

Who is the father of socialism? ›

Karl Marx revolutionized and popularized the ideas of Socialism. Therefore, he is called as the father of modern socialism.

Is North Korea a socialist? ›

According to Article 1 of the state constitution, North Korea is an "independent socialist state". It holds elections, though they have been described by independent observers as sham elections, as North Korea is a totalitarian dictatorship with a comprehensive cult of personality around the Kim family.

What is Dutch society like? ›

Dutch culture and society

The Netherlands is a liberal country with a progressive outlook, and Dutch people are characteristically straightforward, pragmatic, and tolerant. Many Dutch attitudes, values, and beliefs appear to stem from Calvinism, a major branch of Protestantism, which dates back to the 16th century.

What is the Dutch structure of society? ›

The Dutch see the family as the foundation of the social structure. Families tend to be small, often with only one or two children. The Dutch are disciplined, con- servative, and private. They do not draw attention to themselves and do not val- ue the accoutrements of success highly prized by other western societies.

Is the Dutch economy unequal? ›

Netherlands - Inequality of income distribution was 3.94 in December of 2022, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Netherlands - Inequality of income distribution - last updated from the EUROSTAT on May of 2023.

What is it like living in Amsterdam as an American? ›

Life in Amsterdam is generally calmer than visitors might expect. Away from the tourist-filled areas, the Dutch capital is a relaxed, family-friendly place. In general, the city is very safe, yet you will want to use caution in other areas where bike thefts are common.

What is Amsterdam known for bad? ›

Amsterdam has long had a reputation as a destination for drugs, drink, and sex tourism. The city's red light district is famed for its legalised brothels and window displays of sex workers, while its cannabis coffee shops also attract rowdy groups of hen and stag parties.

What is so special about Amsterdam? ›

It is the capital and the principal commercial and financial centre of the Netherlands. To the scores of tourists who visit each year, Amsterdam is known for its historical attractions, for its collections of great art, and for the distinctive colour and flavour of its old sections, which have been so well preserved.

What type of economy does Netherlands have? ›

The Netherlands has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation. Netherlands is a member of the European Union (EU).

What is the main income of the Netherlands? ›

A European transportation hub, the Netherlands has the EU's fifth-largest economy, supported by exports of chemicals, refined petroleum, and electrical machinery and by a highly mechanized and profitable agricultural sector.

Why is it called the Dutch disease? ›

Economists have long known that large resource discoveries could be harmful to economies in the long-term, a phenomenon that was named Dutch disease following the effects of the Netherlands' gas discovery in the North Sea. What they have not known until recently is how easy it is to catch it.

When was the Netherlands communist? ›

Communist Party of the Netherlands
Communist Party of the Netherlands Communistische Partij Nederland
Founded14 February 1909
Dissolved15 June 1991
Preceded bySocial Democratic Party
Merged intoGroenLinks
11 more rows

When did the Netherlands become so liberal? ›

Liberalism in the Netherlands started as an anti-monarchical effort spearheaded by the Dutch statesman Thorbecke, who almost single-handedly wrote the 1848 Constitution of the Netherlands that turned the country into a constitutional monarchy.

Who started socialism in Europe? ›

The first modern socialists were early 19th-century Western European social critics. In this period socialism emerged from a diverse array of doctrines and social experiments associated primarily with British and French thinkers—especially Thomas Spence, Charles Fourier, Saint-Simon, Robert Owen.

When was Britain a socialist country? ›

Socialism in the United Kingdom is thought to stretch back to the 19th century from roots arising in the aftermath of the English Civil War.

Who did the Netherlands gain independence from? ›

With the defeat of the French in 1814, the Dutch regained independence and full sovereignty, and in 1814 the Kingdom of the Netherlands was proclaimed.

Who freed the Netherlands? ›

In 1944 & 1945, the Netherlands was liberated by Canadian, British, Polish, Dutch, and American troops. This page focuses on the U.S. contributions to the liberation of the Netherlands. The Netherlands was occupied in May 1940 after five days of sometimes heavy fighting.

When was the Netherlands the most powerful country? ›

Over the course of the seventeenth century, the Dutch nation became one of the wealthiest and most powerful in the world, employing its naval prowess to dominate international trade and create a vast colonial empire.

What kind of democracy is the Netherlands? ›

The politics of the Netherlands take place within the framework of a parliamentary representative democracy, a constitutional monarchy, and a decentralised unitary state.

What is the most liberal city in the Netherlands? ›

Amsterdam: A History of the World's Most Liberal City.

Is communism and socialism the same thing? ›

Socialism and communism both place much value on creating a more equal society and removing class privilege. The biggest difference between them is that socialism is compatible with liberty and democracy, while communism depends on an authoritarian state to create an “equal society” that denies basic liberties.

Is Scotland a socialist country? ›

Scotland is a democracy, being represented in both the Scottish Parliament and the Parliament of the United Kingdom since the Scotland Act 1998.

Is Sweden a socialist country? ›

As Norberg points out, by about 1950, Sweden was the fourth richest country in the world, and had the fifth freest economy. In other words, Sweden became wealthy through economic freedom. Then, it started to adopt socialist policies.

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