Facts on the Swedish Economy

1) From 1870 to the mid-1950s, Sweden was the fastest growing economy on the planet and by 1970 it was the 4th wealthiest country in the world.............2) For most of that time period Sweden was a highly capitalistic country that was aided by factors such as secure property rights, the rule of law, a fair and honest court system, a solid private banking system, free trade, and limited regulations.............3) Starting in the 1970s, Sweden's economy became much more government centric and was characterized by policies such as rigid labor market regulations (amongst which a solidarity wage that nearly destroyed incentive), the propping up of stagnating sectors, and massive increases in spending (government spending eventually reaching 66% of total GDP) and taxes.............4) Between 1975 and 1985, the Swedish debt increased by nearly 10-fold.............5) By 1980 the top marginal tax rate was 85% and when you included all taxes it was over 100% for some folks (over a certain amount of income).............5) By 1990 there were actually more tax-financed jobs in Sweden than there were private sector jobs.............6) Sensing the unsustainability of such debt and entitlement growth, Sweden eventually reformed their economy to the point where government spending is now down to 51% of GDP and the top tax rate 57% (still too high but significantly better than 85%).............7) Other reforms included school choice (are you listening Mr. Obama?), a partial privatization of Social Security, reduced regulations, a reduction of the corporate tax rate to an exceedingly competitive 22%, and a total elimination of the death tax.............8) After these reforms, Sweden's national debt decreased from 80% of GDP in 1995 to only 35% of GDP in 2010.............9) Sweden's response to the 2008 financial crisis was not one of stimulus spending (Sweden's Finance Minister, Anders Borg, actually went as far as to criticize President Obama for his stimulus package) but rather one of permanent tax cuts and welfare spending reductions - the end result being significant economic growth coming out of the recession.............10) And it wasn't just Bjorn Borg who got out of Sweden in the '70s and '80s. Film director Ingemar Bergman and pop band ABBA also got the hell out of there (as did thousands of other folks) and I'll say it again, 85% of 0 is 0.