According to Michael Rosen in The American, Sweden's citizens suddenly awoke and elected its first conservative government since World War II. Taking a cue from U.S. President Ronald Reagan, tax cuts to businesses and individuals were the order of the day with the following outcomes:
- Between 1993 and 2010, GDP growth in Sweden surpassed Europe's by 1%.
- By 2010, Sweden's public debt dropped to 37% of GDP and taxes on corporations dropped to 22%. (In the U.S., the corporate tax is 35%.)
- Sweden's pension system changed from a defined-benefit program to a defined-contribution program.
- Sweden established an independent Fiscal Policy Council to evaluate government policy.
Embracing free-market reforms, entrepreneurs have flourished. For the past 10 years, Sweden has had one of the highest levels of venture capital per capita anywhere in Europe. Other signs of economic progress include:
- Spotify--the $4B music streaming program--and Skype--the VoIP service--both began in Sweden.
- Saab has twice beaten out larger aerospace companies, including Boeing, for aviation contracts.
- Tottering on the brink of bankruptcy in 2013, the Scandinavian airline SAS made its first profit in 6 years after negotiating with its workers for cuts in pay and retirement benefits.
As Sweden casts its 50+ year experiment with socialism into the dustbin, it's sad to see that the current U.S. administration's lust for a more centrally-planned, statist economy is gradually taking root in the United States. Just yesterday, the nonpartisan Congressional Budget Office released a report indicating that part-time work will soon be the order of the day in the United States so that citizens will be eligible to collect healthcare subsidies from the federal government. When will the sheeple wake up?
Let the discussion begin...
To read Michael M. Rosen's article in The American, click on the following link:
"Sweden's Swing toward a Free Market."