1. Corporatist welfare state
Sweden
Corporatist welfare state

2. Country profile

3. Data

4. Wasa ship
Picture

5. Medieval guilds A brief synopsis

6. Role of the state
1880 and welfare origins (Poor Laws, 1847), health 1874, publicly financed pensions in 1913, 8 hour workday 1919.
Little state ownership
Income inequality of 1930s
Industrial revolution
LO and SAF

7. The middle way Allocation by market forces Distribution by the state
Active government involvement with labor markets
Wage solidarism (Rehn-Meidner) and corporatism and centralized collective bargaining: wage equalization across skills and firms and seniority levels

8. Corporatism Authoritarian or voluntary (liberal)
Liberal variety duopoly in a labor market as a self-organized (SAF vs. LO)
Authoritarian variety as sponsored and mandated by the state
Keeping balance between unemployment and inflation
Conflict or consensus corporatism

9. Economic philosophy
Experience with poverty, emigration and laissez faire
Employment and Keynesianism
Egaliterianism

10. Welfare Distribution and redistribution role of the state
26% of aggregate demand is accounted for by the government (20% in the US and 9% in Japan)
Government expenditure is 41% of GDP (22% in the US)

11. Beneficiaries of Swedish government spending
Housing
Municipal services
Social security
Low defence
Low health (1.1%)
High on education
Taxes:
Income, profit, capital gains (17.8%) compared to 51.5% in the US
Indirect taxes (29%) compared to 3.5% in the US
Social security: similar

12. Performance 1960-s economic growth
1970-s oil shocks and inflationary pressure
1980-s wage solidarity and the Philips curve, globalization of trade

13. Growth or eurosclerosis
Extensive safety nets
Great role of the state
Protectionism through subsidies
Strong vested interests

14. Traits Small country as a big player in the world markets
Social democracy: complementary rather than competitive relationships (high social capital)
Sharing market information for the overall economy’s gain
Active and mobile labor market
Employee ownership and participation

15. Eight reasons for the decline of the model
Collapse of support for Social democrats
Expansion of full employment concept
Stagnant economic growth
Excessive wage solidarism
Breakdown of EFO wage setting (public sector)
Misguided subsidies of the 1970s
Inflation stabilization
Internationalization