Democrats still cite Sweden as proof socialism works. But the real Sweden survived by rejecting it — abolishing wealth taxes, protecting capital, expanding choice, and becoming a startup powerhouse.
I didn’t know any of this. I don’t spend much time thinking about Sweden three things. I like the best about this that I wish we would adopt here. Universal school choice. No inheritance or gift tax. Lower property taxes.
Personally, I think the ideal tax on income and capital and wealth is zero. But I understand how difficult that would be to implement, because you’d have to replace it with a sales tax, which is highly unpopular, but would be very effective and would not be regressive if done correctly.
Honestly, I don't think we'd need to replace them. Death tax is particularly ideological, not fiscal, in nature, as it literally costs more to collect than it raises in revenue. We don't currently have a wealth tax (which taxes unrealized gains, so it's basically just a slow expropriation), so that's no problem. Eliminating capital gains tax would explode economic activity and thus tax revenue.
That leaves just income. And while I have intricate opinions on how to address that, I don't have time to summarize them in this comment. :)
"That leaves just income. And while I have intricate opinions on how to address that, I don't have time to summarize them in this comment. :)". Ahh! A future column!
A fascinating piece about how capitalism saved Sweden 🇸🇪 and allowed it to thrive! Those who hold up Sweden as an example of great socialism is on the left are full of c***! The facts prove it! Sweden made economic reforms that made its economy soar! The Swedish government abolished frivolous taxes, slashed marginal rates, expanded school choice, reformed pensions, disciplined spending, and opened large parts of its welfare state to private competition and delivery. The result was a long-term economic boom. Socialism had taken a bite out of Sweden. By 1990, Sweden was facing a brutal fiscal and financial crisis, a bloated pubic sector, a currency crisis, a banking collapse, and a gross public deficit approaching 80% of GDP. Sweden however was saved by a center-right government who from 1991-1994 started the restructuring the Swedish economy. The Social Democratic government that followed realizing the dire state of the country, continued these reforms when they assumed office.
Former Minister of Employment Sven Otto Littorin spearheaded these efforts. The Swedes made their central bank more independent and adopted an inflation target. It also imposed a serious fiscal framework: a surplus target over the economic cycle, statutory spending ceilings, and balanced-budget discipline for municipalities. It reformed pensions into a defined-contribution system with automatic balancing. It created a partly privately managed premium tier. Lastly, it adopted a nationwide school voucher reform. Sweden got rid of the gift tax, wealth tax and death tax, and replaced the property tax with a low capped municipal fee. They also introduced and repeatedly expanded its earned income tax credit.
Their productive economy is overwhelmingly private as well. Even much of the welfare state is delivered through market mechanisms: private schools, private health clinics, private eldercare, private providers under public financing, and a purchaser-provider split that makes the state more funder than operator. Sweden is NOT a socialist country, they practice welfare capitalism. That is NOT the same thing! The lesson Sweden teaches us is that nations decline on socialism and rise on economic freedom and school choice! I’m a social liberal, but I’m a staunch conservative on fiscal issues. I believe in fiscal responsibility, low taxes, minimal regulations, free trade, balanced budgets, and small government. I’m pro-union, I absolutely believe workers should be able to collectively bargain. But should unions be so powerful they can literally control the economy? No. As to school choice, I went to a public school and want to see the public school system fixed. But I also believe in school choice. This is because I think parents should be able to choose what kind of model of education is right for their children be it public, private, charter, homeschooling, you name it. For black, Hispanic, Native American, poor, and disabled students, it’s a Godsend because they can get out of bad schools or schools that don’t work for them and get into a good school or a school that does. For poor students, it’s means getting out of violent, poorly performing schools and into safe, high rated schools they wouldn’t be able to afford otherwise. I believe school choice and thriving public schools can coexist together. One needn’t be to the detriment of the other. It’s not a zero-sum game! Public schools needn’t lose so school choice can win! They both can win!
👍👍Awesome post, Rod! This should be required reading for every American!🇺🇸
Thank you!
Information I did not know. Thank you.
I didn’t know any of this. I don’t spend much time thinking about Sweden three things. I like the best about this that I wish we would adopt here. Universal school choice. No inheritance or gift tax. Lower property taxes.
Personally, I think the ideal tax on income and capital and wealth is zero. But I understand how difficult that would be to implement, because you’d have to replace it with a sales tax, which is highly unpopular, but would be very effective and would not be regressive if done correctly.
Honestly, I don't think we'd need to replace them. Death tax is particularly ideological, not fiscal, in nature, as it literally costs more to collect than it raises in revenue. We don't currently have a wealth tax (which taxes unrealized gains, so it's basically just a slow expropriation), so that's no problem. Eliminating capital gains tax would explode economic activity and thus tax revenue.
That leaves just income. And while I have intricate opinions on how to address that, I don't have time to summarize them in this comment. :)
"That leaves just income. And while I have intricate opinions on how to address that, I don't have time to summarize them in this comment. :)". Ahh! A future column!
A fascinating piece about how capitalism saved Sweden 🇸🇪 and allowed it to thrive! Those who hold up Sweden as an example of great socialism is on the left are full of c***! The facts prove it! Sweden made economic reforms that made its economy soar! The Swedish government abolished frivolous taxes, slashed marginal rates, expanded school choice, reformed pensions, disciplined spending, and opened large parts of its welfare state to private competition and delivery. The result was a long-term economic boom. Socialism had taken a bite out of Sweden. By 1990, Sweden was facing a brutal fiscal and financial crisis, a bloated pubic sector, a currency crisis, a banking collapse, and a gross public deficit approaching 80% of GDP. Sweden however was saved by a center-right government who from 1991-1994 started the restructuring the Swedish economy. The Social Democratic government that followed realizing the dire state of the country, continued these reforms when they assumed office.
Former Minister of Employment Sven Otto Littorin spearheaded these efforts. The Swedes made their central bank more independent and adopted an inflation target. It also imposed a serious fiscal framework: a surplus target over the economic cycle, statutory spending ceilings, and balanced-budget discipline for municipalities. It reformed pensions into a defined-contribution system with automatic balancing. It created a partly privately managed premium tier. Lastly, it adopted a nationwide school voucher reform. Sweden got rid of the gift tax, wealth tax and death tax, and replaced the property tax with a low capped municipal fee. They also introduced and repeatedly expanded its earned income tax credit.
Their productive economy is overwhelmingly private as well. Even much of the welfare state is delivered through market mechanisms: private schools, private health clinics, private eldercare, private providers under public financing, and a purchaser-provider split that makes the state more funder than operator. Sweden is NOT a socialist country, they practice welfare capitalism. That is NOT the same thing! The lesson Sweden teaches us is that nations decline on socialism and rise on economic freedom and school choice! I’m a social liberal, but I’m a staunch conservative on fiscal issues. I believe in fiscal responsibility, low taxes, minimal regulations, free trade, balanced budgets, and small government. I’m pro-union, I absolutely believe workers should be able to collectively bargain. But should unions be so powerful they can literally control the economy? No. As to school choice, I went to a public school and want to see the public school system fixed. But I also believe in school choice. This is because I think parents should be able to choose what kind of model of education is right for their children be it public, private, charter, homeschooling, you name it. For black, Hispanic, Native American, poor, and disabled students, it’s a Godsend because they can get out of bad schools or schools that don’t work for them and get into a good school or a school that does. For poor students, it’s means getting out of violent, poorly performing schools and into safe, high rated schools they wouldn’t be able to afford otherwise. I believe school choice and thriving public schools can coexist together. One needn’t be to the detriment of the other. It’s not a zero-sum game! Public schools needn’t lose so school choice can win! They both can win!