Krona capitalism

Sweden is iconic, like Marilyn Monroe or Karl Marx. It is supposed to stand for something special: a kind of paradise where socialism and a big welfare state go together with being a successful, rich country. The left use it as a triumphant example: ‘See! It works in Sweden! High levels of equality, a big welfare state, socialism — and it works!’ People think that Sweden proves it is possible for a socialist welfare state to be prosperous, happy and civilised. They think it shows that relatively high levels of tax do not make much difference to economic performance. In fact, for the left, Sweden demonstrates that all that they dream of is possible.

An article in the Guardian of 16 November 2008 (‘Where tax goes up to 60 per cent, and everybody’s happy paying it’) shows the idea is alive and well. The left can’t work out why similar ideas in Britain have never led to the same success.