Comments by "grabir01" (@grabir01) on "Fox Business"
channel.
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@dethcubegaming1556 Given the reputation of Sweden as a country highly influenced by social democracy, many would probably guess that equality and prosperity in Sweden came about as a result of anti-capitalist policies pursued by the social democrats and the labour movements. Some might add that Sweden’s strong economy was a result of avoiding two world wars. But these explanations do not fit very well with what actually happened.
For example, it is true that Sweden implemented high levels of labour market regulation, as well as high and progressive taxes. But these policies were introduced in the 1970s and at that point in time, most of the extraordinary development towards prosperity and equality had already taken place. The key answers must be sought much further back in time.
It started with capitalism!
Several careful studies, often using highly detailed historical data, have examined the causes of prosperity and equality in Sweden. By putting together research in economics, economic history, sociology and political science (some of which is only available in Swedish) a coherent picture emerges: Sweden’s development towards prosperity started with institutional reforms that unleashed the prosperity generating powers of capitalism: Incentive enhancing land reforms, property rights, successful anti-corruption measures and free trade reforms (to mention a few of the arguably most important institutional changes).
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