The Swedish Model Reassessed


kansiWhat should other nations learn from the Swedish model? The success of Swedish society is not linked to the welfare state as is often assumed. Rather, it is the result of cultural and demographic factors, as well as a favorable business environment, throughout most of Sweden’s modern history.

The combination of very high taxes, rigid labor markets, and generous handouts constrain entrepreneurship and wealth creation in Sweden. The nation would be even more affluent with a free market-oriented policy. Sweden is now moving closer to its free market roots, reducing taxes considerably, and rising in indices of economic freedom.

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