Fiscal competition and economic freedom


Fiscal competition and economic freedom

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The truth about the "Swedish model"

Sunday 16 October 2011

An excellent report published by the Finnish think-tank Libera Foundation offers a novel historical perspective on the development of the Swedish economy.Contrary to the commonly- held view, this report is explaining the success of the Swedish model is not due to the Welfare State. Rather, it is a Johny-come-lately: expansion of public welfare started only around 1970. By 1985, taxes exceeded 50% of GDP and by the mid 1990’s Sweden had dropped from one of the top positions to a mid-level rank in terms of wealth and economic growth.

You can read the report here .

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