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Look to Sweden? (Some of Europe’s social democracies are ahead of the US on market-based reform.)
The American ^ | February 26, 2008 | Henry Olsen

Posted on 02/26/2008 7:22:56 PM PST by neverdem

Without much fanfare, some of Europe’s social democracies have jumped ahead of the United States on market-based reform, writes HENRY OLSEN.

When former U.S. defense secretary Donald Rumsfeld referred to traditional NATO allies like France and Germany as “Old Europe,” he expressed a widely held American stereotype. In this view, Europe is sclerotic and calcified—resistant to change and forever looking back on its past—while America is the polar opposite: dynamic, innovative, and eager to embrace its future.

So Americans might be surprised to learn that “Old” Europe is actually ahead of us in tackling many of the most vexing domestic policy challenges. Without much fanfare, Sweden, Holland, and other countries known for their social-democratic welfare states have adopted innovative, market-based reforms on issues such as pensions, transportation, and education. What’s more, while U.S. politics remains paralyzed by partisanship, European parties on the left and the right have teamed up to implement free-market policy ideas that are criticized by the American left as extreme.

These developments were the focus of a recent American Enterprise Institute conference. Leading European reformers explained how they were able to overcome political obstacles and make far-reaching changes. Some of the issues they addressed included:

How Sweden’s Social Democrats, centrists, and conservatives joined forces to adopt personal pension accounts paid for by tax dollars, an idea nearly identical to the one President Bush proposed in 2005 to the unanimous disdain of congressional Democrats.

How center-right and center-left parties in the Netherlands made common cause with employers and labor unions to reform their country’s bloated disability insurance system, a decision that cut or eliminated benefits for nearly one out of every seven Dutch adults.

How France reduced its energy dependence by making nuclear power the basis for its electricity generation.

How Sweden’s disparate political blocs agreed to establish a nationwide school voucher program, which, over the past 15 years, has led to a tenfold increase in the number of Swedish students attending private schools. The degree of political cooperation necessary to achieve these reforms is perhaps the most striking feature of the European experience. American journalists often decry the way in which partisan politics prevents Washington from addressing important problems or “getting things done.” When they call for “bipartisanship,” however, it often seems little more than a call for Republicans to accept Democratic priorities.

Over the past 15 years, Sweden’s nationwide school voucher program has led to a tenfold increase in the number of students attending private schools.In Europe, parties on both sides of the political aisle have learned the art of genuine compromise. Take the case of Swedish school vouchers and pensions. School vouchers were enacted by a conservative-led government in 1992. Initially, every Swedish student had the option of using a private school voucher equivalent to 85 percent of per-pupil spending at the local public school. When the Social Democrats took power in 1994, they could have repealed this law. Instead, they chose to increase the amount of the voucher to 100 percent of public school expenditures—but they forbade private schools from charging tuition on top of the voucher amount. This compromise fused the conservative goal of full public funding for educational choice with the socialist goal of equal spending on all children.

Swedish parties reached a similar compromise with regard to pension reform. The talks that began in 1989 under a Social Democrat-led government continued through a period of conservative governance and were concluded during another stretch of Social Democratic rule. The eventual reform included features that the left wanted, such as the continuation and full funding of a large, purely public pension regime, along with features that the right demanded, such as a free-market system allowing all Swedes to invest a portion of their tax dollars in up to 800 different private sector pension plans.

Free markets teach people to monitor their competition continually, and competition among countries for jobs and capital is no different. As the evidence from Sweden and elsewhere shows, Europe is gaining ground on the United States. The question is if and how America’s political classes will respond.

Henry Olsen is a vice president of the American Enterprise Institute and director of its National Research Initiative.


TOPICS: Business/Economy; Culture/Society; Editorial; Politics/Elections
KEYWORDS: europe; freemarkets; marketbasedreform; reform; sweden

1 posted on 02/26/2008 7:23:01 PM PST by neverdem
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To: neverdem

Lefties and righties teaming up to help the economy, what a concept... I think we should go take notes, cause nobody knows what the heck is going on around here...


2 posted on 02/26/2008 7:30:30 PM PST by The Axis Effect (If people were held accountable we would all be screwed...)
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To: neverdem

bookmark for later


3 posted on 02/26/2008 7:30:30 PM PST by IrishCatholic (No local communist or socialist party chapter? Join the Democrats, it's the same thing.)
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To: neverdem
hot swedish girls

There are other reasons to look at Sweden...

4 posted on 02/26/2008 7:37:24 PM PST by Snickering Hound
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To: Snickering Hound

I’ve completely lost my train of thought. What were we talking about again????? Was it white hot pants?


5 posted on 02/26/2008 8:00:14 PM PST by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Snickering Hound
Interesting that five out of these 10 girls are NOT pure Swedish breed???

2050 the muzzies will be in majority!!!

6 posted on 02/26/2008 8:02:51 PM PST by danamco
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To: neverdem

“their social-democratic welfare states have adopted innovative, market-based reforms on issues such as pensions, transportation, and education.”

bring it on.


7 posted on 02/26/2008 8:12:17 PM PST by spanalot
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To: danamco

Parachute this boy into Sweden asap and I’ll work my hardest to make sure its atleast 2060.


8 posted on 02/26/2008 8:20:12 PM PST by Proud_USA_Republican (We're going to take things away from you on behalf of the common good. - Hillary Clinton)
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To: Snickering Hound

Note to self: research Sweden’s immigration policies...


9 posted on 02/26/2008 9:00:35 PM PST by Army Air Corps (Four fried chickens and a coke)
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To: Snickering Hound

Siiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiigh!


10 posted on 02/26/2008 9:37:31 PM PST by HeartlandOfAmerica (Don't blame me - I voted for Fred and am STILL a FredHead!)
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To: Snickering Hound

Seriously, stop insulting conservative women by posting this crap on every thread. It’s boring.


11 posted on 02/26/2008 11:09:31 PM PST by donna (Pornography can reach out and snatch a kid out of any house today. - Ted Bundy)
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To: neverdem

Sweden: population 8,780,000

Netherlands: population: 15,341,600

Different states in the US do different things, too.


12 posted on 02/26/2008 11:12:59 PM PST by donna (Pornography can reach out and snatch a kid out of any house today. - Ted Bundy)
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To: donna
Insulting?

You can say to him stop posting childish comments instead of serious answers but these girls are really beautiful and not naked or even nearly naked. So being beautiful is clearly not insulting at least i hope so.

Back to topic. Scandinavian countries have a very very long tradition of ruling by compromises. It´s a part of their culture and not a question of size or population. There is a lot other countries can learn from these countries and there are reasons why scandinavians are much more satisfied and happy with their living and their country than for example americans or germans.
They are always at the top of the list in terms of quality of living and happiness.

13 posted on 02/27/2008 2:03:08 AM PST by stefan10
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To: neverdem

btt


14 posted on 03/01/2008 4:54:31 PM PST by Cacique (quos Deus vult perdere, prius dementat ( Islamia Delenda Est ))
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