Very interesting. I had not realized that the percentage of GDP spent by government was so similar to surrounding nations. However, it remains true that Sweden experienced higher growth rates than the nations used to compared spending to. I am not saying that is a result of social spending, I am saying that it is interesting that it occurred despite a fairly high level of social spending. Remember, Sweden dedicated more to social spending than most countries, which had heavier defense allocations. Part of the argument against the welfare state is not merely that it diverts resources from the market to inefficent use by the government, but that it coddles people and creates disincentives to working at maximum capacity. In the case of Sweden, that seems not to have applied until, at least, government spending practically doubled.
I like your research on PPPs. It is a problem when quoting per capita GDP, to know how good a reflection it is. Remember, in '91, Sweden was still the fifth most prosperous country in per capita GDP. Yet the erosion in PPP that you mention makes sense. I think I will come back to this after mulling over the data you offer. I am grateful that you looked it up, though....... |
