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#11
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![]() Quote:
Sweden was one of the world’s fastest-growing economies for nearly a century. But by the 1960s, the country began to take its wealth-creating prowess for granted. I tell Mr. Norberg about New York Mayor Bill de Blasio’s assertion: “There’s plenty of money in this world, it’s just in the wrong hands.” In 1960s Sweden, Mr. Norberg replies, “that’s almost verbatim what they said back then: ‘Now we’re this rich. Shouldn’t we just distribute it, and give it to the people and the places we like?’ ” Such thinking overtook the country’s dominant center-left Social Democratic Party. We thought we could do anything, and we had all of those other preconditions: the work ethic, some sort of social pressure, which meant that people were doing the right things, and they wouldn’t want to live on the dole,” Mr. Norberg says. “And then for 20 years, from 1960 to 1980, we doubled the size of the government spending as a percentage of GDP. That’s the aberration in Swedish history.” The Swedish welfare state first was a safety net for the needy. Over time the political class moved to “socialize the lives of the middle classes as well.” The plan: “Increase their taxes, and their benefits, and then they will buy into this system. The consequences were predictable. “It resulted in less work, people preferring to stay at home and paint the house rather than hiring someone to do it, general lack of getting the kind of education that matters. It led to entrepreneurs leaving Sweden.” Private-sector employment declined from the 1970s to the ’90s, while disposable-income and economic growth was relatively slow. Some of the country’s best companies and brightest minds fled an onerous inheritance tax” More info here on how Sweden’s prosperity was built on capitalism: https://m.youtube.com/watch?v= | |||
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