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 richest country in the world; eighteen years later it was fourteenth. Its recovery is due to reforms such as for-profit schools, vouchers in health and education and the privatisation of pensions. If we want UK to be more like Sweden, we need to follow this path, something unpallatable for those on the Left.
Listen here. Segment starts at 1:22:25.