The Swedish Model That Bernie Sanders Reveres Won't Work Here

For years, Senator Bernie Sanders has touted Sweden as his favorite democratic socialist model, praising the country for its high tax rates and massive social welfare spending programs.  He may want to change his tune.  According to a recent Wall Street Journal article, Sweden’s socialist experiment was an enormous failure, and a capitalist makeover is underway in Sweden.

Sanders has pointed to Sweden as the model for the democratic socialism he embraces and espouses.  He has extolled their socialist programs as the type of system the U.S. should implement, repeatedly praising the high tax rates on the rich and big corporations, rigid government regulations, and big government spending on free social programs.

Sweden’s Social,Democratic Party launched their socialist experiment in the 1970s and 1980s, sharply raising taxes and spending.  The top individual tax rate was increased to nearly 90%, and the corporate tax rate was raised to 60%, inheritance taxes were raised, and a wealth tax was increased to historical highs.

The results were predictable.  As the Wall Street Journal article pointed out, “the changes triggered a long period of weak growth, stagnant after-tax income, and ballooning deficits and debt.”