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Sweden's Response to European Crisis? Lower Taxes, Shrink Government

"When individuals and families get to keep more of their income, their independence and their opportunities to shape their own lives also increase."
Anders Borg, Swedish Finance Minister

‘Everybody was told “stimulus, stimulus, stimulus”,’ he says — referring to the EU, IMF and the alphabet soup of agencies urging a global, debt-fuelled spending splurge. Borg, an economist, couldn’t work out how this would help. ‘It was surprising that Europe, given what we experienced in the 1970s and 80s with structural unemployment, believed that short-term Keynesianism could solve the problem.’ Non-economists, he says, ‘might have a tendency to fall for those kinds of messages’.

He continued to cut taxes and cut welfare-spending to pay for it; he even cut property taxes for the rich to lure entrepreneurs back to Sweden. The last bit was the most unpopular, but for Borg, economic recovery starts with entrepreneurs. If cutting taxes for the rich encouraged risk-taking, then it had to be done. ‘In most cases, the company would not have been created without the owner,’ he says. The Spectator

Swedish response to euro crisis:
- Eliminate national debt
- Lower Corporate tax rate
- Cut property taxes
- Cut luxury taxes
- Cap on annual government spending
- Cut welfare programs
- Increase Taxes tobacco and alcohol (no big dealstilled backwoods folk who still know how to make their own snus (dip) and moonshine)

Someone needs to tell Krugman, Bernanke, and all their Keynesian friends that their poster child country is doing exactly the opposite of what Keynesian theories are telling them to do. If anyone is looking for proof that Ron Paul's economic policies work you can now use Sweden as an example.

Not bad, now if they could just get out from under the yoke of the Pharma controlled national health care system Sweden could end up being the new powerhouse of the European economy.

You can read some articles on Anders Borg and Sweden here:
http://www.iie.com/publications/papers/transcript-20120423.pdf

http://www.spectator.co.uk/essays/7779228/swedens-secret-rec...

http://blogs.spectator.co.uk/coffeehouse/2012/04/anders-borg...

http://www.forbes.com/sites/mattkibbe/2012/08/02/with-most-o...

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Stop lying about Swedish

Stop lying about Swedish politics!
TexanInSweden, what purpose do you have with lying about Swedish economics and politics?

Sweden has the highest taxes of all countries in the entire world. The so called "right wing" government is the most socialist government in the whole world. Swedes elect either the most socialist government in the world, or the most socialist government in the world. Those two are the single alternative.

51½% of GDP is confiscated by the government, that's about one-and-a-half times the level in the US or Germany, right?

Sweden is also one of the most indebted societies in the world. The government's debt isn't very high, but that's because they steal other peoples money in gigantic scale. If Greece introduced the same tax level, they'd be able to pay all government debts too. Swedish households have debts of about 170% of their yearly income. When the bubble crashes in Sweden too, which of course it will any time now, you'll government deficits in the range 10-20% av GDP there too. The housing price bubble is just a temporary illusion.

Our so called right-wing government, the most extremist socialist government in the entire world, promises to never ever change anything, to never ever lower any tax. Mass media makes sure that the topic of economics never is allowed to be debated in any way. Government owns and bribes most mass media in Sweden.

So called welfare programmes are expanding explosively without limits. Real estate taxes are continuously increased. Well, everything you write is totally wrong! Why are you lying, TexanInSweden? What purposes do you have with your lies?

Am i lying? I know for a fact

Am i lying? I know for a fact that i am paying less income tax and property tax then i have in the past decade. I am paying less then 300 USD a year in property taxes for 2 properties which by the way is 15 times less than I paid in the US. But again I am not defending Swedish socialism, it makes me nauseaous, I am stating that Swedens current economic policy of paying off the national debt and lowering taxes (albeit very high taxes) is counter to what every other country in western civilization is doing during the current crisis, and it works.

Now the argument that Sweden has the highest tax rate in the world can be debated depending on whether you are including the hidden inflation tax. Unless you have other information, from what i understand the Swedish central bank is not printing several trillion dollars every year. While the taxes are extremely high here at least the swedes are honest about taxing their citizens to death.

The housing bubble is another issue altogether and highly depends on where you live. Southern Sweden has out of control prices and is obviously not based on reality. However if you live in the northern forests of Sweden you can purchase a family farmhouse with barn and several hectares of farming land for 125,000 USD (1,000,000 SEK). You can also purchase nearly 80 hectare of productive forest for that price. Which I am sure most readers would agree is a fair price. On a side note the housing prices have slowed down quite a bit now though that the banks require a 20% down payment.

You are absolutely correct about lack economic debate in swedish media and the fact about a government controlled media. However I think you will be hard pressed to name one country that does not have government controlled media.

You are also correct about the lack of choice in Swedish politics. While I can not vote in national elections because I refuse to become a citizen and accept a King, when I do vote in local elections I vote Pirate party (Internet freedom) or Swedish Democrats (anti EU).

You are also correct that the Swedish central bank will collapse just like all other state sanctioned and enforced monopolies to create money are destined to. And yes I know that the only way to truly realize liberty and freedom is to allow the open competition of currencies. Again the purpose of this post is to point out that Ron Paul's economic policy of reducing taxes, national debt, and government is good economic policy, even for the over taxed, over governed keynesian poster child state of Sweden.

reedr3v's picture

Thank you for informing us of the good news

in Sweden's work-in-progress economic recovery.

Along with the past take-down of its economy during the height of its socialist experiment, the usual unexpected consequence of moral degeneration seems also to be still a major problem. In the high-profile case of Julian Assange, the Swedish government apparently is a U.S. puppet, the courts apparently are grievously unbalanced and unjust, the people apparently brainwashed by Authoritarian media.

Is there a significant Swedish Liberty movement opposed and working to remedy the awful turn toward popular and legal tyranny?

No unfortunately there is not

No unfortunately there is not a liberty movement in Sweden the people here are hopelessly addicted to their government handouts and still believe the propaganda.

There are few glimmering lights of hope though:
- www.vaken.se , a popular alternative news site that is a cross between infowars and the DP.
- Pirate Party - A one issue political party dedicated to Internet freedom that won several seats in EU parliament
- Swedish Democrats Party - a growing political party that is distinctively anti EU.

Interesting. Thanks.

Interesting. Thanks.

Of course...

Swedeish government needs people to make more so they can tax more to support all the bs programs and politicians.

I for one cannot believe the Swedish welfare state would actually reduce taxes. This is politics. Swedish people would starve and freeze to death.

Ps. Was not Volvo sold to China?

Saab is toast too. IKEA...wtf?

This is not the great Sweden 40 plus years ago imo.

donvino

You're right!Sweden is

You're right!
Sweden is headed down hard now. We're at the top now, because our housing bubble hasn't crashed yet.

100 years ago many very successful companies were founded in Sweden. But since then taxes have six folded. 40 years ago Sweden was almost as prosperous as the US and Switzerland, but now Sweden is the poorest country in nothern Europe. And this is when we are at the absolute top now, we haven't had any financial crises yet. Housing prices have increased thus far. As a child, I could never have imagined that the utterly poor war torn Finland would surpass Sweden in prosperity, they were very very mush poorer then. But here we are.

Even now at the top of the bubble, unemployment is massive. Social problems are huge and just keeps getting worse. This is the peak, it can only get worse and much much worse. Sweden is now half-islamistic, we're the Saudi of Europe, and it won't be pretty when the shit hits the fan anytime now. In Sweden it is illegal to debate any sociatal problems, so no solution is possible. Sweden is a very dangerous hell hole.

Plopper i don't think you

Plopper i don't think you understand what the US housing bubble was, it was 40 million houses built with cheap money and government handouts that no one wants to live in. Sweden is not facing a US style housing bubble, hell you would be lucky to find a place to live here if you are in the city.

From reading your comments I can guess that you come from the other Sweden (the southern cities), it might do you some good to venture out from your hell hole and visit the northern wastelands and all the weirdos living up here. You can stop by for fika and I can introduce you to the real Sweden. =)

Sorry to hear all this.

It seems bleak. Sweden always seemed like some intriguing and exotic place for numerous North Americans to visit. For example, people I knew during university made Sweden a mandatory destination to travel to after graduation and were not unhappy with this choice.

Bjorn Borg and Borje Salming and Forsberg were and are great 'ambassadors' for Sweden imo.

Hopefully Sweden and its decent people can make the necessary adjustments and prosper again.

donvino

Yes Sweden is still a welfare

Yes Sweden is still a welfare state and definitely not a land of liberty, but it is true that they have reduced property, income, and corporate taxes as well as cap annual government expenditures. It is also true that the government has recently paid off ALL debt. Fortunately the Swedish people were able to vote on adopting the Euro over a decade ago and narrowly voted it down despite the huge government propaganda.
Volvo was sold to Ford over a decade ago for a fair amount of money, it was Ford who sold to china for a next to nothing. And unlike the 'conservative' US government they refused to bailout their auto industry even with all the pressure from the unions.
However it is true that Sweden has considerably raised taxes on tobacco, alcohol, and gas that nearly cover all the other tax reductions but like I said the country folk of Sweden are still country and the art distilling and curing is alive and well.

This post is not about the wonders of Social Swedish but instead about how eliminating national debt, reducing taxes, and restraining government is good for the economy even during a crisis despite what Keynesian garbage bernanke or krugman continue to spew. Thus providing evidence that Ron Paul's economic solutions work.

The Volvo automotive (car) line

was sold to Ford, the heavy truck and construction implement lines are still based is Sweden. The sale of the car line allowed Volvo to spread it's diabolical tentacles by purchasing Renault (RVI) in France, which owned the majority of Mack Trucks Inc. here in the U.S.
I believe they have also purchased one of the branches of Ingersoll Rand since selling off the car line.

Thanks again

Volvo cars used to be some of the most reliable cars in the world. Sure their look did not change but the Volvo owners I knew could always depend on their car. Those cars from the 70's and 80's lasted forever.

donvino

I have two 1988 Volvo 740

I have two 1988 Volvo 740 station wagons, definitely the best model. They are cheap as dirt here, around 1000 USD. Had them for over 6 years and they run like a clock even when it is -30 C outside. I can pick a spare part from anywhere for nothing and fix it myself. I think they are cool even if I am the only one. If Volvo would just release that model again they would make a killing except the price of the steal these days might make it unrealistic.

thanks

For the info. It was very informative. Hopefully things will get much better there again.

You guys use to make good jet fighters and toys if I recall correctly

donvino

The Euro too is debt based "legal tender"

It is manifestation of debt that is still all about Sweden, yet eludes you all. The whole world "legal tender" system is based on debt.

I too am optimistic about all that makes Sweden livable.

Thank you for many a good report. Beware of the money changers.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Yeah Sweden is still

Yeah Sweden is still controlled by a central bank as all other lands on this clot of earth. But I lift up a beer now under the midnight sun hoping I live to see the day when there is one corner of dirt that can break free from the control of the money creators.

FYI - apparently the Swedish central bank is still acting independently from the rest of the western money creating cartel.

Many will think you wise... beyond your years.

Oft folks take me... the fool, though I have out lived so many.

Depends on who is counting.

FYI: The Swedish Central Bank creates nobility. They grant nobility through Ri.. bank prize for Economics... "Nobel" in name only.

The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 1969-2007 ... by Assar Lindbeck

Since 1968, Sveriges Riksbank (the central bank of Sweden) instituted... "The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel." ... [This bank nobility] award is given by the Royal Swedish Academy of Sciences... Not really a Nobel Prize that have been awarded since 1901.

The procedures for selecting the [Bank] Laureates each year is the Academy receives some 200-300 nominations, usually covering a little more than one hundred nominees. [Depends on who is counting.

(Unsolicited suggestions from persons who have not been asked to submit nominations are not considered.) "It;s a club, & you ain't in it." - George Carlin

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

It is so refreshing when an intuitively obvious approach works.

From Sweden & Island... we have much to learn. Their common sense approaches to intractable monetary predicaments, worked out quite well.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Well, it would've been, but

Well, it would've been, but it's all maniac phantasies completely without connection to reality. It's like claiming that the US economy has recovered since Obama invented capitalism and paid off all debts by donating his private fortune to the tax payers. Nice story. But complete lies. Since Sweden is exotic to most of you here, one micgt get away with total lies about it. Cuba, which is admired by leading Swedish politicans because of their phantastic social progress and best-in-the-world healthcare, as Swedish massmedia and school never stops informing us about over here, would be a bit more difficult to lie about in the US, I suppose.

TexanInSweden is a weirdo, or a complete fool, sorry.

When a man meets me, he oft reconsiders what is a fool.

Phantastic phantom phantasies (aka: fantastic phantom fantasies) are adventures in the telling.

'Like claiming that the US economy has recovered since...' [it didn't.] 'Nice story.' ... 'Cuba, which is admired by leading Swedish politicians' [& is an island; yet, I when I typed "Island," I menat "Iceland." Another island. Another story. Sorry.]

Despite facts to the contrary, I remain optimistic about Sweden.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Apology not accepted, it is

Apology not accepted, it is Island in Swedish. Is = Ice, land = land and it is an island, so you were right twice. =)

Cheers,
Weirdo

Twas a foggy memory! On second thought a mistake. Thank you.

Thank you for confirming my foggy memory from days gone by.

Twas ett dimmigt minne! Den andra trodde att ett misstag. Tack för att du bekräftar min dimmigt minne från dagar gått. Det gäller,

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Wow. A politician and citizenry that understand what works!

Thanks for sharing.

They understand.

They understand here. They just don't want it to work. I don't see how anyone can't understand that.
If it works they won't be able to turn us into slaves.
Pump all of our money to China via free and unfair trade(we cant compete w/ workers that make a fish head and a bowl of rice a day)
then borrow the money from china and the corporations that that instigated this.
This started after Kissinger went to China and "opened it up".

Take a look and pass it around the Web as much as possible--ifamericansknew.org

You have to watch out for homegrown Israeli agents infiltrating your organization. They are highly skilled by culture and religion to lie, cheat, steal, bribe, corrupt, and deceive their host to no end.

Just throw in some treasonous sellouts who throw us to the wolves for a pocket full of gold and you have the recipe for where we are at today.

You're being very foolish and naive if you believe otherwise.

DON'T BE SO BLUE-EYED! ! !

Shrink government back down to the size of a teabag!!

Follow Iceland and Ireland's lead. Toss the bankers into Boston Harbor and be done with it.

Tossing Bankers in Icelandic Harbors Grants Speedy trial.

The cold water temperature in & about Iceland may have contributed to the rapid recovery of Iceland. Once the international bankers were cast off the island, even those that might have swam like a shark in warm mater, found Icelandic sea temperatures... rather cold.

Boston Harbor water is not near so cold. Bankers might survive. They might demand their right to a speedy trial.

Here are 3 centuries of Icelandic water temperature recording. Please use the attached report for planning purposes.

Icelandic Coastal Sea Surface Temperature Records Constructed: Temperature recordings from 1700 to present. Putting the Pulse on Air–Sea–Climate Interactions in the Northern North Atlantic. Part I: Comparison with HadISST1 Open-Ocean Surface Temperatures and Preliminary Analysis of Long-Term Patterns and Anomalies of SSTs around Iceland (Manuscript received 21 October 2005, in final form 14 February 2006). Color charts, graphs, & tables. 15 pages.

Disclaimer: Mark Twain (1835-1910-To be continued) is unlicensed. His river pilot's license went delinquent in 1862. Caution advised. Daily Paul

Actually Iceland and it's

Actually Iceland and it's waters are not as cold as you think. The Gulf Stream brings the warmer temperatures there and the rest of Europe, without it, Europe would be like Siberia. Freezing cold. The Vikings who settled Iceland gave it that name to keep anyone else from conquering it, to think it was too cold and unihabitable.

Actually it is spelled Island

Actually it is spelled Island in Scandinavia. Is = Ice, land = land.

Point goes to Mr. Twain.

The Economic warfare waged

The Economic warfare waged against Iceland in the fall of 2008 is what jerked me out of dreamtime. That very day I pulled out all of my US savings and purchased gold, which over 4 years increased my wealth by 100%.