Not a headline/article I expected.
Sweden—or sometimes Denmark or Norge, for hygge, or Finland for schooling and happiness—carry this mythical belief among most Anglos. I've seen it in America and Australia, and it's rampant in Britain (#847595).
Truth is Sweden (and other Nordics) are much more market-friendly than most Americans or Brits know /slash/ give it credit for.
Per the Heritage foundation's Economic Freedom index, Sweden actually passed the U.S. in 2018... and the trendline is in the right direction:
Freer trade, more transparent regulations/rule of law, and stronger property rights if you can believe it... (tax burden and social welfare is naturally higher, so U.S. scores higher on government spending than Sweden does, but Heritages gives Sweden 97/100 for "Fiscal Health" whereas the U.S. get a shocking 0/100 —LOL!)
Stupid Europeans-and-their-Stupid-European-Opinions sometimes (accidentally?) get something right (#968945).
Here's Mr. Sharma's take in the FT today:
Every year I run an analysis of the Forbes rich lists, to spot countries where billionaire wealth is surging as a share of GDP, concentrating in family empires or pooling in “bad” industries better known for corruption than productivity. My working assumption is that the most extreme outliers face the highest risk of anti-capitalist revolt. This year the warning signs point above all to Sweden. Though still seen by many progressives as a socialist paradise, Sweden saw billionaire wealth rise by 4 points to 31 per cent of GDP — the biggest increase, and to the highest level, of the 20 major economies in my analysis. Sweden has 45 billionaires, about 1.5 times more per capita than the US, which is often said to be enjoying a new gilded age.
Not sure I buy this distinction, but I see what he's getting at
"A functioning economy will generate a balanced billionaire class, with more “good” wealth from industries like tech or manufacturing than “bad” wealth from sectors such as real estate or commodities."
Apparently, Sweden is doing well there...
At just 12 per cent, the “good” share of billionaire wealth is third lowest among my top 10 developed countries.
...but THIS worldview update is the most crucial ones to most progressives looking eagerly at Sweden
Sweden began to encourage wealth creation after the failure of its post-second world war experiment in unrestrained welfare statism. Heavy taxes were driving celebrities and industrialists out of the country, costing Sweden far more in lost wealth than it raised in revenue. The ensuing financial crises of the early 1990s forced Sweden to rethink its commitment to socialism. Sweden did not end free education and healthcare, paid for with high income taxes. But it did downsize the welfare state, while abolishing or lowering taxes on wealth, inheritance, corporations and real estate.
Also this for a modern-day update. Man, the entire piece is mandatory reading for those with a (leftist?) hard-on for Scandiland:
Sweden is not the only big welfare state to see a billionaire boom in recent years — France has too — but each has special imbalances. Sweden’s include distorted taxes and easy money. The country taxes capital much less heavily than salaries, and sometimes taxes capital regressively. A yearly homeowner fee is capped under $1,000 — a big boon for the rich. Sweden has also held interest rates well below the European average, and low rates tend to inflate asset prices, while making it easy for the rich to borrow money to make more of it.
Our pal Johan Norberg (#969787) is quoted too:
Very much worth your time.
non-paywalled: https://archive.md/WmrcA