The World’s Most Surprising Capitalist Makeover Is Under Way in Sweden

Times change.
https://www.wsj.com/world/europe/the-worlds-most-surprising-capitalist-makeover-is-under-way-in-sweden-a7830619

The shake-up of cradle-to-grave care is lowering government spending, spurring innovation and stirring fears about those left behind

This paragon of collectivism is pivoting toward rugged individualism.

For decades, Sweden was shorthand for the brand of high-tax, high-spend government that managed people’s lives from cradle to grave through state-run hospitals, schools and care homes.

No longer. With little fanfare, this Nordic country of 11 million has embraced capitalism.

Today, nearly half of primary healthcare clinics are privately owned, many by private-equity firms. One in three public high schools is privately run, up from 20% in 2011. School operators are listed on the stock exchange.

The capitalist makeover has allowed Sweden to do what few industrialized countries have managed in recent years: shrink the size of the state. That has enabled the government to sharply lower taxes and, economists say, sparked a surge in entrepreneurship and economic growth.

Sweden’s public social spending now was 23.7% of GDP in 2022.
US such spending is 22.7%

While many European countries are raising taxes, Svantesson has cut them three years in a row. Sweden’s top income-tax rate has fallen close to 50% from nearly 90% in the 1980s.

Critics say the paring back has gone too far. Inequality is soaring in this traditionally egalitarian country. Gang violence has surged in dozens of immigrant-heavy suburbs, creating areas where local criminal networks challenge state authority and hinder policing. A public debate is raging over for-profit schools, which critics say make money by skimping on playgrounds, libraries and staff.

Wealthy entrepreneurs who had fled Sweden’s high taxes have been returning, said Jacob Wallenberg, a member of the Swedish industrial dynasty that owns big stakes in Ericsson, Saab and other large companies.

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You will have to excuse me if I suspect the Wall Street Journal is busy declaring victory before the war is done.

Dearest AI: “How is the economy of Sweden doing compared to Finland and Norway?”

Dearest Goofy:

As of early 2026, Sweden has the largest overall economy in the Nordics, yet its growth has been constrained by high inflation and a weak currency (SEK) compared to its neighbors, causing a forecast decline in growth as of late 2023, similar to Finland. While Sweden boasts the highest GDP in the region, Norway holds a higher GDP per capita, and all three are experiencing challenging, relatively flat economic growth. [1, 2, 3]

Key Economic Comparison:

  • Sweden: Holds the largest total GDP (approx. $591B in 2022) but faces lower purchasing power than Norway and is experiencing slower growth due to economic headwinds and a weaker currency.
  • Norway: Maintains the highest GDP per capita due to oil, offering higher income than Sweden, though its economy is also under pressure.
  • Finland: Often follows Sweden closely in performance, with lower GDP per capita and slightly slower overall growth rates compared to the Swedish, Norwegian, and Danish economies.

It’s oh so Murdochian!

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Putting it nicely, there are ethnic divides now in Sweden. Put a fork in it, it’s done.

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What are the real numbers? Sweden is still better than the United States in social security network, low crime rates, no gun violence, healthy environment, less pollution, free education, low energy emissions, etc. Sweden rants very high on the best places to live in the world.

Jaak

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And it, along with the other nordic countries, seems to be among the happiest for folks:

But who cares about being happy anyway?

Pete

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