Free markets as the secret to Sweden’s success?

Yes, Sweden. And yes, they have been, as Stefan Karlsson observes:

…Sweden during its most free market oriented era, from 1870 to 1950, had the highest rate of per capita economic growth in the world. After massive tax and spending increases during the 1950s and 1960s, Sweden stopped outperforming other countries….However, free market reforms implemented in the 1990s, and in recent years, have enabled Sweden to once again outperform other Western countries in growth.

There’s a double hope in these findings. First that markets boost growth over non-market alternatives, but second that even after years of stagnation and stifling policies, a return to markets will yet spark renewed growth.

Supporters of markets know this, of course, but the second point is often deprecated, as though a nation goes beyond markets. There are many ways to fall behind and below market performance, but there’s no beyond.

Via Christian Science Monitor.

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