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---------------- 1969 - Sweden’s New Government
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- Sweden and the other Nordic countries, Denmark, Norway, and Finland are smallish countries with greater flexibility and greater success in reforming government. Compare improvements to what you see in Washington DC and in California. My references below will just say Sweden but could apply to other Nordics as well.
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- Sweden has risen out of the 1990’s with vast improvements in economic competitiveness, social health, and happy citizenry. The have used good management to avoid the economic sclerosis of southern Europe and the US’s extreme inequality.
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- Sweden had a debt crisis in 1990, like the US has today. Sweden went “ practical”. They reformed their public sector. They focused their government on efficiencies and responsiveness.
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-- The US focus today is on how our new health plans will affect citizen incomes. It is locked up in Congressional in fighting. The Swedish idea was to have a “ lean” government. This is a shock to French leftist who thought it was socialist Scandinavia . And, on the other shock Barak Obama’s dreams to take the US into Swedenisation. Both were way out of date. Sweden has changed from the 1970’s and 1980’s when they were a tax and spend country.
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- In 1993 Sweden’s public spending was 67% of its GDP. Their most successful entrepreneurs were taxed at 100%. In 1970 they were the 4th richest country in the world. In 1993 they were the 14th.
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- Today’s government share of GDP is 18%. Corporate tax rates are 22%. While our Congress dithers over reforms and gets nothing done. Sweden has reformed its pension system. Its budget deficit is 0.3 % of GSP. The US is carrying a 7% budget deficit which is 23 times greater than Sweden’s.
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- How? They have allowed private firms to manage their hospitals. Unlike the US VA. They have school vouchers for private, for-profit schools that compete directly with the public schools. School choice is even encouraged.
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- The US government ( Washington DC) promotes itself as having “ transparency” and the “ highest technologies”. This is “ fake news” and so un-true. We have more congressional investigations, FBI, NSA, probes, commissions into secrets and fraud , and political corruption than you can shake a stick at. And, stick shaking is about the extent of any accountability. Maybe on finger shaking!
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- In direct contrast, Sweden forces government to operate in the bright light of day. Sunshine is the best disinfectant. “Everyone” is given access to “all” official records. It does not take years, dozens of subpoenas, a boat load of lawyers, to find out what actually goes on in “their” government. Politicians are vilified by the public if they display any extravagant spending. Most ride a bicycle to work. Sweden is a leader in efficient electronic government. You can even pay your taxes using your cell phone app.
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-They have competitive capitalism coexisting with the 30% that is in the public sector. The stated objective is to be stout free-traders always resisting any government intervention. They let Saab go bankrupt. Volvo is now owned by the Chinese.
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- Government policies actually make it easier for employers to sack workers. The government focuses on support and training for the unemployed. They even help them with venture-capital networks.
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- Ok, but it is not all perfect. There is much more to be done. Their taxation and regulations are still high enough to encourage entrepreneurs to move abroad. Too many people, especially immigrants are living off of government benefits. Global competition is forcing more government cuts. They need more means-testing of all welfare benefits.
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- The European Union is 7% of the world’s population, but, 50% of its “ social spending”. The Nordic lesson is to focus on practically, not ideology. Government is not popular unless it works. Swedes pay taxes more willingly than Californians because they get good schools and decent health care. They have learned to inject market mechanisms into welfare and entitlement programs. The emphasize on sharpening performance today in order to relieve the burden on future generations.
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- They have abandoned the orthodoxies of the left and the right. They have adopted the pragmatic that produces good ideas that work. They have become a laboratory that the US should study and follow. California is sorely lacking in adopting many of these good ideas. Send Jerry to Sweden.
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- Stockholm is now dealing with international terrorism. The bad news that follows Globalization. If you are doing well, much of the rest of the world hates you. Protectionism may be the unfortunate result. The whole world is dealing with this. Let’s pray for our leadership and our military. It is a rough world out there.
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- Note (1): Request any of the Reviews by number to learn more.
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----- 707-536-3272 ---------------- Saturday, April 8, 2017 -----
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