Sweden

["Mason A. Clark" <masonc@xxxxxxxxxxxxx>]

I picked this up in the sci.econ newsgroup.  I'm going to make a
wild suggestion:  the Swedish "middle way" was the best of all
economic systems.   The only problem was, it couldn't survive
amidst globalized capitalism.

           Mason C

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The NY Times has a long story on the mess Sweden has gotten itself
into, in today's issue (8/10) and on its web site.

Snippets:
--
     The country that produced Gunnar Myrdal and preached racial
tolerance has now developed segregated communities in Stockholm's
suburbs for many of the 800,000 immigrants who have come here over the
last 30 years...
     The government spends 46 percent of Sweden's gross national
product on welfare, more than any other country, and its overall
public spending is 63 percent of gross national product.
      The income taxes required to support this public munificence
take 59 percent of the pay of people earning as little as $30,000 a
year and oblige employers to pay up to 41 percent of employee
remuneration into social security and pension plans....
     "No one is sure about what the way for Sweden is anymore,"
[political scientist] Mr.Sjoren said. He produced study charts that
held out little hope that the country's leaders would take any
decisive action.
     Measuring the dispositions of major countries, the document
placed Sweden in the corner representing the pursuit of stability
instead of innovation, and dependence on collectivist action as
opposed to individual initiative.
      Other industrialized countries were crowded into the top quarter
for their willingness to take risks and act decisively. Sweden's only
companion in the forlorn bottom spot was Japan...
      Sweden's largest and most successful company, the
telecommunications giant Ericsson, is threatening to move its
headquarters to Britain, where it finds the business climate better.
Industrialists cite high personal income taxes and rigid labor rules
as impediments to remaining competitive globally.....
     Any attempt at restructuring faces formidable cultural
resistance. The work force is 80 percent unionized, and 31 percent of
the jobs are in the public sector. Pressure for change is coming from
frustrated entrepreneurs and young people...said Lindgren of Kairos
Future. "Businesses can't grow here, because it's too expensive to
hire people," he said.
    "Young people are starting to think globally," he said. "They're
comparing themselves with the people around the world that they meet
on backpacking trips or on the Internet or where they've studied
abroad or at a job for a multinational. Some of them are moving away,
and they are the people that Sweden needs most."

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    Per, call home!  They need you.