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Discussion: (2 comments)

  1. There are some quite interesting points to make from Sweden’s example

    but it is still a social-democratic welfare state, with the world’s second highest taxation (right behind Denmark) filled with rules and regulations. Certainly the overall tax pressure has been reduced by the Reinfeldt conservative administration, but it is certainly not a tax hawk government. Borg’s main focus has been on moving money around in the budget (sometimes in a beneficial direction, as the tax cuts to companies for employing young under the age of 25) and keeping the budget balanced. The government may have its house in order, but ordinary Swedish citizens don’t, with a high degree of personal debt.

    The economy of Sweden in the first quarter of 2012 shrunk most in the whole of Europe, which is not that surprising as the economy is dependent on foreign trade that produces 60% of the GDP. This is not entirely the fault of the government’s policies, but it shows that the country’s economy has a strong dependency on factors the Swedish government cannot influence – for better or for worse.

    The center-right government’s policies have generally been in a good direction, but I am tempted to note that it is rather easy to become the poster boy of fiscal conservatism and liberalization today. You become a tax punk rocker by not being a tax hiker.

    PS. Conservative governments have been re-elected before, as in 1979 but not with the same good results as the present.

  2. I guess those tax cuts for the rich didn’t work out after all, did they? Don’t worry, they didn’t work in the USA, or in Italy or Spain or Greece either.

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