The Great Divergence In Denmark

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Beyond these global trends, there are a number of trends unique to Denmark that have resulted to an increase in inequality. The decades leading up to the Great Divergence in Denmark have a significant relationship with how the economy would behave in the years after. During World War I, Denmark experienced a marked increase and abrupt decline in inequality due to a lack of economic preparedness for a drawn-out conflict resulting in a volatile market (Atkinson & Søgaard, 2016, pp. 283). Danish preparedness for World War II allowed for less of a major impact to the economy and a further decrease in inequality throughout the Great Compression. A major part of their fiscal policy after the war was the trend of rising marginal tax rates (Atkinson

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