Stossel: Sweden is Not a Socialist Success

Many people think Sweden is socialist, but its success comes from free markets.

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Democratic socialists in the United States point to Sweden as a socialist success. But Swedish historian Johan Norberg says, "Sweden is not socialist."

Norberg hosts a documentary called Sweden: Lessons for America?, in which he notes that in Sweden, "government doesn't own the means of production. To see that you have to go to Venezuela or Cuba or North Korea."

John Stossel asks Norberg why so many Americans think Sweden is socialist. Norberg answers, "We did have a period in the 1970s and 1980s when we had something that resembled socialism: a big government that taxed and spent heavily."

But big government led to problems. "Our economy was in crisis, inflation reached 10 percent, and for a brief period interest rates soared to 500 percent. At that point the Swedish population just said, 'Enough, we can't do this,'" Norberg says.

Sweden cut public spending, privatized the national rail network, abolished certain government monopolies, eliminated inheritance taxes, sold state-owned businesses, and switched to a school voucher system. It also "lowered taxes and reformed the pension system," adds Norberg.

So Stossel asks why we keep hearing "that Sweden is this socialist paradise."

Norberg answers: "We do have a bigger welfare state than the U.S. and higher taxes than the U.S. But in other areas, when it comes to free markets, when it comes to competition, when it comes to free trade, Sweden is actually more free market."

He's right, according to the Heritage Foundation's Economic Freedom Rankings. Sweden ranks higher than the U.S.

Norberg also tells Stossel that Sweden's tax system may surprise Americans. "This is the dirty little secret....We don't take from the rich and give to the poor. We squeeze the poor, because rich people might leave."

Even people who earn below average income pay up to 60 percent in taxes.

Stossel asks: What lessons should Americans take from Sweden?

"You can't turn your backs [on] the creation of wealth," warns Norberg.

The views expressed in this video are solely those of John Stossel; his independent production company, Stossel Productions; and the people he interviews. The claims and opinions set forth in the video and accompanying text are not necessarily those of Reason.

[anasiankiddo]

When you realize Sweden is more American than America

[masteroogway]

Sweden even had to come out and tell Bernie that where not socialist

[LouisEmery]

One thing that struck me: It's important for the "poor" to pay tax in general because they'll start to be interested in how the government spends money.

[yanki]

The PM of Denmark had to come out and say, *WE ARE NOT A SOCIALIST COUNTRY*

[rebeccaoprea]

Only people who have never lived in a socialist society would say that .

[davidmitchelwinograd]

"We want to be like Sweden"
"Sweden is capitalist, not socialist. They have a mixed economy."
"Ok, let's do that then!"
*crickets*

[juhopitkaranta]

Yeah, we can argue all day about welfare systems, but at the end of the day, if you want a large welfare network, you need a free market in order to afford to pay for it.

[hyperm]

Same in Spain, socialism has failed and I'm sick of it.

[thecenterleftlibertarian]

As a danish Guy, i can personally say that almost every problem in denmark is created by the state. The little socialism we have does not work.

[punkrockerfan]

“Socialism is when the government does stuff” Karl Marx

[eidodk]

There's NOWHERE in Scandinavia that is SOCIALIST...

[joachimgronlund]

Sweden is a capitalist success story. Electrolux, Spotify, Ericsson, Skype, SKF, IKEA, Koenigsegg, Hasselblad, Atlas Copco, Volvo, Sandvik, ABB (Swedish-Swiss), AstraZeneca (Swedish-British), H&M, Absolut Vodka and plenty more. There are no socialist success stories. Not in Scandinavia, not anywhere else.

[Irishcrossing]

Bernie is right for once, we should look to Sweden for economical advice...Freer markets and privatization.

[johnc]

Whenever leftists speak of Scandinavian socialism and wanting to be more like them, we should fully agree that the U.S. should be more like them and then explain how they're more free market.
These are hallmarks of why market capitalism works.

[Billy_Mandalay]

Bottom line...
No such thing as a free lunch.

[petter]

1. Sweden has never been a socialist country
2. Sweden is a mixed economy
3. Swedes love capitalism
4. Swedes are the top creative inventors in the world
5. Swedes complain but work hard

[robertbrandywine]

The poor in Sweden are "loyal taxpayers"? I suspect it is more a case of them not being able to move out of Sweden like the rich can.

[Kellhound]

I am a university professor in the U.S. This should be shown to all incoming freshman, and again to all graduating seniors to mitigate the bullshit they get in between from their socialist professors.

[wallaroo]

We "squeeze the poor" in the US too. We tax food, water, energy. I think I remember reading a story, years ago now, about an old lady who added up all the little taxes she was paying, right down to he morning coffee at McDonald's. Americans have no idea how much they are paying - for SES salaries, and "training" for federal employees to go to resorts. I tried to fight it, I tried to block such "training." I was kicked off off the committee. And shortly thereafter, the committee was reduced to email voting for approval of taxpayer funds, to send VA employees skiing in Aspen... Ya know in the name of "therapy training for Veterans."
The VA, and the whole damn all of it federal budgeting system - is a disgusting disgrace.
It doesn't matter what of the two parties is in power.

[leemayzes]

I'll give you an Canadian view - Between the time they told me I needed a hip replacement -and I got it - was over a 3 year wait. It was 6 months before I got to see an orthopedic surgeon to schedule an MRI - then a year before I got the MRI - months more before I got back to see the surgeon for diagnosis results. The last year of waiting was spent in a wheelchair till I actually got the surgery. There is more to this story but that gives you a good idea of Universal health care. And I'm Lee's mom - not Lee