Re: New New Dealism?

[Doug Henwood <dhenwood@xxxxxxxxx>]

Devine, James wrote:

> BTW, Doug: how do you reconcile high profits under Swedish social democracy
> with such an egalitarian income distribution?

A lot of the profits came from exports. As Swedish firms
multinationalized,production and associated profits moved abroad, and
cheaper labor than Swedish could be engaged. Upscaling also boosted
profits; Volvos were never cheap cars.

I don't have evidence on this, but I'm speculating that high personal
tax rates encouraged firms to retain and re-invest profits. Anyone
else know?

Doug