The Swedish Model: Government Austerity

Sweden, like Norway, is often held up as a country which is "socialist and successful."  For example, Sweden has high taxes yet also has had healthy economic growth recently.  In this century so far, Sweden's total tax bite amounted to 52% of GDP, while the U.S.'s was 32%.  Yet Sweden's real GDP grew 2.3% per year from 2001 to 2011, and ours grew only 1.6% per year.  Prima facie evidence that high taxes don't kill an economy, right? In July I deconstructed the Norwegian "Miracle," the other "socialist and successful" country.  It's Sweden's turn now. Sweden, like Norway, consists of a small, not very diverse, mostly white and Christian people.  Its population is 9.1 million -- a bit less than North Carolina's.  (There are 13 cities in the world with bigger populations.)  Not only are native Swedes white, but so are most of Sweden's immigrants.  The CIA World Factbook lists its immigrants as "Finns, Yugoslavs, Danes, Norwegians, Greeks,...(Read Full Article)