Sweden’s Economy Sweden’s economy: mix of capitalism and socialism. Cradle-to-grave since 1932 Large, privately owned industries An abundance of public services financed by taxes Large trade union movement Works to achieve even distribution of wealth/income Education, medical, childcare, national health care system, parenting

1990’s—60% of Swedes depend on the government for a job or welfare payments. Blamed for the economic problems (1991) Attempted to lessen governmental control People did not like the idea Many expensive welfare systems have been preserved Highest government spending in the world

Benefits Up to 18 months of paid maternity leave for women Up to 6 months paid maternity leave for men Monthly allowances for having children Free education

Economic Reforms Partly privatized social security Eliminated inheritance taxes No primary residential property taxes Political and social stability Accepting foreign investors **Some of their economic reforms surpass reforms made by the U.S.**

Critical Thinking Compare and contrast Socialism in Latin America and Sweden.