Mark Littlewood discussed the IEA's latest paper, The surprising ingredients of Swedish success – free markets and social cohesion, with Nick Pearce from IPPR. He argues that it is wrong to attribute Sweden's success to its generous welfare state . Its success has come from large cuts in public spending and deregulation.
Sweden was a free trading, free market country until the1950s when it became socially democratic with increased spending and tax increases. This correlates with a period of slow economic growth: in 1955 Sweden was the fourth riche