Dan Mitchell nails it again
Sweden must be a schizophrenic country. Something strange is happening, after all, if a statist like Jeffrey Sachs and a rabid libertarian like yours truly both cited it as a role model in our remarks last month at the United Nations.
So who’s right? Well, it depends what you care about.
- Jeffrey and other folks on the left are correct in that Sweden has a big government financed by high tax rates. According to OECD data, only France and Denmark have a bigger burden of government spending. And the OECD also shows that Sweden’s top income tax rate of 56.6 percent is the most onerous in the industrialized world.
- But if you look at non-fiscal policy variables, Sweden ranks as one of the world’s most free-market nations. Like Denmark, it compensates for a big public sector with laissez-faire policy in other areas, including nationwide school…
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