Sweden is no socialist paradise
http://www.adamsmith.org/blog/international/sweden-is-no-socialist-paradise/
Sweden is held up as a socialist’s paradise, proof that big government can deliver big results. However, a new report argues that Sweden’s economic success occurred because social and cultural capital as well as its unique historical circumstances. Indeed, Sweden came out on top in spite of, rather than because of, the socialist policies.
Firstly, the foundations of Sweden’s later success were created between 1870-1936, before the ascendency of the Social Democratic party. The giants of Swedish industry, Volvo, Ikea, and Alfa Laval, all arose during this era of largely unregulated capitalism. Low taxes and pro-business attitudes reigned, and the results are manifest.
Secondly, the authors posit that Sweden’s continued success rests upon social and demographic factors outside the reach of government policy. As they put it, “The perceived advantage of Swedes over other countries rose before the rise of the welfare state”. The factors underlying Sweden’s success are the “Lutheran work ethic” and the “cohesion of a largely homogenous population with particular social values”.
. . .
what lessons can the struggling state learn from the Swedish model? Simply: that growth and wealth creation is best left to individual entrepreneurs, and the best action the government can take is to create a pro-business environment in which these individuals have the highest chance of success.
>>>
(Entire article is at the link. Zim.)
Mad Poet Strikes Again.
| 
