Re: Sweden -- A few reactions on the N.Y. Times article

[Per Gunnar Berglund <pgb@xxxxxxxxxxxxxxxxxx>]

In response to Dennis Redmond:
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I am sorry to hear that the N.Y Times is no longer what it used to be. As to
Swedish media, the situation is absolutely dreadful from the Keynesian point
of view. It so happens that for some years now, I have been the sole Keynesian
to appear in media at all, and indeed Professor Lindbeck and his disciples have
long since smoked out all Keynesians from academia. When I move out (in
September, to New York), the Keynesian view will be completely exterminated
in Sweden -- both in the public arena and in academia!

In my view, the root of the Swedish social, political and economic catastrophy
is what I would like to call an intellectual coup d'etat that took place in the years
1979-82. In the first phase, 1979-80, the academic institutions were cleared
of Keynesians under the Orwellian flag of 'concordance' ['samsyn' in Swedish,
literally meaning 'coordinated sight']. During 1981-82, the new vision was
planted in political life through the network of academically affiliated policy
advisors. The new régime took on after the Social Democrats won the 1982
election. One of the most ironic details of this coup, was that the Social
Democratic party congress had decided on a Keynesian anti-crisis strategy
(this was during the early 1980's recession), but it was overrun by its own
government. Even the election campaign rhetorics of Social Democratic party
leader (later Prime Minister) Olof Palme, was fully in the Keynesian vein.

I have prepared a graph that provides a clear and fine illustration of the kind
of austerity that has been pursued ever since. The graph, which can be viewed
by pointing your browser to
http://csf.colorado.edu/pkt/pktauthors/Berglund.Per/Swedcons.htm , shows
the development of Swedish total consumption, private and public taken together,
measured per capita and in relation to the overall weighted OECD average.
There can be little doubt that the downturn in consumption after 1982 is the
chief reason for the general decay of the Swedish economy. The continuance
of this policy will certainly throw Sweden even deeper into misery and stagnation.

I sincerely hope that no other country is foolish enough to follow the Swedish
strategy. I would predict that the next few years will show even more drastically
the results of the utterly incompetent and cynical Swedish régime.


Regards,
Per


Per Gunnar Berglund
_______________________________________________________________
Snailmail: Lilla Sallskapets vag 60, SE-12761 Skarholmen, Sweden
Voice/fax: +46-(0)888 3065
Website: http://csf.colorado.edu/pkt/pktauthors/Berglund.Per/Mainpage.htm