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  • Sweden Is Not Just About ABBA and IKEA Anymore

    Sweden is known for, among other things, Swedish meatballs, the pop group ABBA, and IKEA.

    Well, here is another thing that Sweden should be recognized for: tax cuts. Yes, you heard right: tax cuts.

    Sweden used to tax corporations at a 60 percent rate. Now that has come down to 26.3 percent. As noted in a recent article by the U.K.-based Spectator magazine, Sweden’s finance minister, Anders Borg, who was named the most effective finance minister in Europe by the Financial Times, got something awfully right.

    Since becoming Sweden’s finance minister, [Borg’s] mission has been to pare back government. His “stimulus” was a permanent tax cut. To critics, this was fiscal lunacy—the so-called “punk tax cutting” agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.… Three years on, it’s pretty clear who was right. “Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,” he says. “Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.” Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit.… He continued to cut taxes and cut welfare-spending to pay for it; he even cut property taxes for the rich to lure entrepreneurs back to Sweden. The last bit was the most unpopular, but for Borg, economic recovery starts with entrepreneurs.

    The tax cuts, combined with Sweden’s highly efficient regulatory system, have raised the Swedish economy to 21st place in the 2012 Index of Economic Freedom. By sharp contrast, the regulation-loving “Yes, We Can” U.S. Administration has driven down our economic freedom ranking over the past three years and is steering our economy into “Taxmageddon.

    Maybe it is time for President Obama to sit down with Sweden’s finance minister for a lesson on how to achieve economic recovery.

    Posted in Featured [slideshow_deploy]

    13 Responses to Sweden Is Not Just About ABBA and IKEA Anymore

    1. Eric Van Pamel says:

      It is good to read about good news, even if it involves someone else!

    2. Bobbie says:

      Simple solution that simply solves America's problem!!

      They have socialized health care? socialized health care is workable in countries where population isn't out of control and the people comply to standard ways of servicing and the government isn't governed without basic principles! Obamacare is found with more entrapment then benefit and it's unconstitutional, just in case someone wants to imply swedes health care has anything to do with it.
      Commendable act of finance minister Borg that all the world's leaders can learn from especially America's leader who once set the example!!!

    3. Oscar says:

      Unemployment is rising, especially among the youth. The labour market is completely out of control. A large cut of the business cannot find qualified labour because the labour market does not work. Don't get too inspired, the long term effects of these unbalances are difficult to foresee, but it's not looking good.

      • Bobbie says:

        It's unsettling why there is public funding going to government "job training services" when there's no jobs to be trained for.

    4. One thing Sweden does NOT do is spend most of its money policing the rest of the world.

    5. O2BMe says:

      Lower taxes is the way to go and less regulations. But when you look at Sweden I doubt they have troops stationed around the world. I also doubt they are sending money to all the other countries as we are. We even send money to counties that hate us. It proves you can't buy friends. How about us sending money to Brazil to drill for oil and promising to buy it when we have our own oil we could drill for.

    6. Tim Ryals says:

      Pay attention America.

    7. Craig says:

      Tax cuts/Smaller Government works every time it is applied: Reagan, JFK, etc(3-4 other times in the 20th century)

      • Raymond Hughes says:

        I'm curious. What would you like to cut out of government that will result in a balanced budget?

    8. Joleen DeVore says:

      kudos to the Swedes. I hope we get the right people elected this fall who will do the same for us.

    9. margrett says:

      Great post!

    10. john says:

      Swedish companies are in general very productive and environmentally conscious

    11. admin says:

      That is good kind of collective information about the Sweden economy. I also have that kind of information and economies of different countries… http://worldsseconomy.blogspot.com/2011/08/econom

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