A Swedish economist and Cato Institute fellow, Johan Norberg, has said Sweden’s experiment with socialism almost collapsed the country decades ago and the experiment may also not work for the United States.
Norberg was speaking during the Fund for American Studies (TFAS) event last week where he said because of the experiment on socialism, Sweden almost crashed.
“Free markets and small government made Sweden rich. The experiment with socialism crashed us,” he said.
Sweden stood as the world’s fourth wealthiest country nearly five decades ago with taxes lower than most western countries, including the United States.
However, due to its experiment on socialism, the country was to teeter on the brink of collapse.
Socialism is defined as a political and economic theory of social organization which advocates that the means of production, distribution, and exchange should be owned or regulated by the community as a whole.
“The problem with these policies is that they began to erode the foundations for a successful society,” Norberg said.
Sweden agreed that socialism was not working but disastrous, he said.
To reform and save its economy, Sweden reverted back to its capitalist structure and it seemed to work.
“Swedish Socialism is the longest way from Swedish capitalism to Swedish capitalism,” Norberg said.
He said Americans have a vital lesson to learn from Sweden’s experiment.
As Gunnar Myrdal, a social economist who inspired the building of the welfare state, said, “If it doesn’t work in Sweden, it won’t work anywhere.”
This comes as the United States is slowly warming up to socialism with about 40% saying it was a good thing.
But the Swedish economist has warned that it will not work.