This is an economy that has an unemployment rate of 4% and is running a budget surplus each year. If it can do that without increasing private sector jobs, then they are ahead of us!
Their population growth is very low. They don't need to create a lot of new jobs to keep the unemployment rate down. Also the "no new private sector jobs" comment was probably made when the unemployment rate was slightly higher then it is now. Also unemployment is subject to manipulation by who you consider part of the workforce. If people can get by on government benefits and don't work they might not be considered part of the workforce because they aren't looking for jobs. In the past Sweden went as far as to run make work programs like the US did during the depression. (I couldn't find hard evidence if these programs are still active or not). A 1980 study by Dr. Sven Rydenfelt pointed out that WPA types of "make work" employed 3 per cent in education or public work schemes. Investigations reveal that 25 per cent of the college students in Sweden are there simply because they cannot get work, or a further 2 per cent. Then there is an additional 90,000 who have asked for "early retirement" because they want to provide work to someone else, another 2 per cent. Finally, there is the 2 per cent employed in industries which are not economically viable, but which continue to hire workers only because of government subsidies. Dr. Rydenfelt concludes: "If these items are added we find a total of 11 per cent unemployed, a share which better reflects the realities of the Swedish labor market than the official reports." While the work force in private manufacturing was reduced by 100,000 in the five-year period 1975-1980, it is significant that employment in the public sector rose by 250,000 during that same period." Things are better there now then they where in 1980 or 1990. But I imagine Sweden's employment as a % of the population is lower then the US's despite Sweden's low official unemployment rate.
More recent data from Swedish economist Nils Karlson -
"In addition, "well over 1 million people out of a work force of around four million did not work in 2003 but lived on various kinds of public welfare programs, such as, pre-pension schemes, unemployment benefits, sick-leave programs, etc." Finally, "a majority of the adult population are either employed by the state or clients of the state in a sense that they have a majority of the income coming from public subsidies.""
Also there is the important fact -
"Sweden has dropped from fourth to 14th place in 2002 among the OECD countries (i.e., affluent industrialized countries) in terms of GDP per capita since 1970."
washingtontimes.com
Most of that drop was before 1995, things are a better now but it hardly shows Sweden as a good long term economic success story since Sweden started to greatly increase the role of the government in its economy in the 60s, 70s and 80s.
Sweden's socialistic tendencies where leading it in to major economic problems. In the 80s and early 90s it developed inflation, growing unemployment and a budget deficit that as a percentage of GDP was far higher then America's today or under Reagan.
"With 10% of industrial output in the hands of the government, high taxes, and an extensive welfare state they are rather socialist. Would I outright call their system socialist? Probably not but they have a very large component of socialism which puts a drag on their economy."
Ten percent does not make for a large component of socialism.
10% of industrial production is directly socialist. The rest is highly taxed and regulated. As far as services government provides an extensive array of services.
Let's look at crime rates.........one or all the articles says that Sweden has a worst crime rate than the US.
You looked at serious assault and murder rates. For other crimes Sweden's rate is higher. "Serious assault and murder" is perhaps the worst crime category, but its rate isn't the same as the crime rate.
More information -
Ownership of household appliances
Average Poorest
Swede fifth of
Americans
48% 60% VCR
37% 60% Microwave
31% 20% Dishwasher
18% 50% Dryer
Source US. Bureau of census, 1992, Euromonitor, 1991. (US figures rounded to nearest 10% because of lack of accuracy)
It turns out that Sweden is richer then Mississippi but is poorer then Alabama
vodkapundit.com |
