Sweden: Record economy faring even better since Conservative assumption of power!

Capacity utilisation in industry is 89 per cent, the highest level measured during the 10-year period that this question has been included in the Business Tendency Survey. While a shortage of capacity is increasingly the main obstacle to industrial firms´ operations, the labour shortage is the main obstacle in the construction sector. The wholesale and retail trade continues reporting strong sales figures. One in three firms in the private service sector plan to increase staffing.

Private service sectors Construction paper Sawmilling and planing of wood food basic metals

Wholesale and retail trade electrical machinery fabricated metal products machinery and equipment wood and of products of wood and cork pulp Man of chemicals and chemical products

Both the inflow of orders and output volume in the manufacturing industry rose further during the third quarter of this year. Output growth in particular was favourable and considerably higher than firms had expected. The confidence indicator has certainly reversed a few points, but is still at a high level. Moreover, favourable growth has led to a further increase in capacity utilisation, a rise in employment and stronger profitability. Firms anticipate a continued increase in order and output growth during the fourth quarter.

The construction industry reports a continued increase in construction activity, inflow of orders and employment during the third quarter. Meanwhile, recruitment difficulties have increased, with two out of three firms stating a labour shortage as the main obstacle to the firm´s operations. Firms´ expectations are more subdued this time than in previous quarters. The construction industry has adjusted downward its expectations for the next 12 months. However, employment is expected to rise further in the next few months.

The wholesale and retail trade reports strong sales figures for the third quarter, with a similar picture for the various sub-sectors. Nine out of ten firms are satisfied with the sales situation and profitability is good. The number of employees has risen and employment growth has been favourable in the wholesale trade in particular. The food trade continues to report moderate price cuts, while the wholesale trade in input goods for the construction sector reports price rises. The wholesale and retail trade anticipates continued strong sales growth during the fourth quarter. Employment is expected to rise further, with mainly the wholesale and durable goods trades planning recruitment, as previously.

Demand growth in the private service sector was favourable during the third quarter. Firms´ assessment of the volume of assignments has become more positive, with nearly four out of five firms satisfied. Employment has risen and various sub-sectors are beginning to experience recruitment difficulties. Nearly half of architectural and construction consulting firms state that a labour shortage is the main obstacle to their operations. Service firms anticipate continued favourable demand growth during the fourth quarter. Employment is also expected to rise considerably, with around one in three firms planning to increase staffing.

The Swedish government agency of National Institute of Economic Research, Konjukturinstitutet, now openly -while it might not be very PC - is giving praise to the newly elected conservative government of Sweden for its tax reductions and downsizing of lavish welfare programmes. Konjukturinstitutet is, apparently, convinced these measures will pay off. The leading economic expertise of the agency predict these reforms will further strengthen one of the ten strongest economies of the World (Measured by Nominal GDP capita).

The GDP growth rate of Sweden has recently been around 4-6%, depending on what measures employed. Since the early 1990's, Sweden has boasted an economical development far better than most Western European countries, despite NOT being in the possession of oil like neighboring Norway, the richest country in the world, spare Luxembourg.

"Now that they are under Conservative control, we we still refer to Sweden as Socialist, or are they now Capitalist?"

My answer:

Swedes themselves have, historically, often confused collectivism with socialism.

Sweden has, since the Kingdom was formed around 1100-1250, been built on two forces: Technological knowhow and organizational clear sight.

Sweden has never been "socialist".

Sweden is more socialist than the US, but nonetheless it's a severe mistake to think of Sweden as a society sharing several of the features of the social and economical order of a nation like Cuba or North Korea.

No other nation has more internationally successful capitalist companies than Sweden measured per capita.
We are in fact MORE capitalist in this respect than any other nation, as we're capitalizing more heavily on international labor per capita than any other nation does.

Swedes are individualists by heart just like Americans and Britons, but they cooperate in a collectivist way because, as a small nation they are aware they, as a collective, have to perform significantly better as a group (for instance, corporate wise) than their bigger competitors.

There's one more thing to it; being pragmatic. If you're outnumbered 10-1, swedes traditionally tend to believe you've got to fight 10 times harder than your enemy.
Not wave a much flashier banner.

Swedish culture is, in one way, still barbarian.
Most nationalities picture their particular nation as something (at least close to) holy.
In Sweden this is in one way the case, because in the first place, the nation of Sweden is holy to Swedes only because it is a pragmatically useful instrument of carrying out our affairs with other people of the world.
We agree to be Swedes only because it allows us to remain free vikings.

Some personal interpretations of mine

- The element of collectivism is a much stronger one in Sweden than in, for instance, the US or in the UK

- This element of collectivism should not be confused with collectivism of property. Although various references to "the common" (in various meanings of the conception) constantly being made in Swedish culture, the notion of "the common" has never really been part of the traditional way of defining a CITIZEN, like it HAS been in Russia, China and/or Japan. Quite contrary, the traditional way of defining "Citizenship" as well as "Freedom" in Sweden has been that of owning your own piece of land and being entitled to participation in government, even on the national level. It ought to be remembered that it was during a period when this was made impossible that Sweden saw its greatest number of inhabitants seeking a better future out of its soil, namely in the emigrant waves of 1850-1930.
In contrast to (most of) the rest of Europe, not even the simplest of swedes put up with any order reminiscent of feudalism, a societal modus of organization never having ruled Sweden.

- While the word "socialist" is one of degradation today in Sweden, most Swedes think the US is an extremely capitalist and right wing society, even though US taxation today equals 33% of the US GDP!

- Swedes in general believe hard work is the only source of prosperity, although they would never hesitate to share their bread with a person claiming to be incapable of work, not even one making this clam on very suspect grounds. It doesn't matter as long as the typical swede is offered an occasion to display the superiority of their correctness and work ethics. Ideal citizens of Sweden don't admit it even to themselves, but they are addicted to ego trips and a sense of superiority.

Sorry if this doesn't answer your questions.
For 36 years of my 37 years, I've lived in Sweden (from the age of 9-10 I lived in Wales).
I still think Sweden is a different planet, although I love the place.
I still can't figure it out.
Maybe it's the people.
Maybe it's the nature.

Perhaps it's just the same as being too much Japanese/American/British/Danish.

"I am happy for you. I was in Sweden in the late '70's on a project for GE, the Engineer, Alpha Laval, his wife and kids were still living with his parents, couldn't afford a home. I was a Tech and he was taking home in real dollars about a third of what I was."

Concerning these "parameters", if we're talking US vs Swedish prosperity, things haven't changed much. US engineers still earn better than Swedish ones, although ordinary Swedish workers live better than their US counterparts.

According to recent statistics, the US has a slightly better Nominal GDP/Capita than Sweden (but is more inefficient per working hour this way of counting), while the US GDP/Capita by PPP (Purchasing Power Parity) is a much higher one than ours.

Are you still in contact with that Alfa Laval friend of yours?

Greetings!

"I'm going to guess that what the Swedes call "conservative" is no where close to what Ayn Rand would call "conservative". They would probably consider half the US Democrat party to be extreme right wing"

In Sweden, believing in "Conservatism" today means getting rid of a system of social security apt for the societal situation of the 1950's and replacing it with one that enables each and every member of this weather ridden kingdom of a future even more successful, liberating, enabling and prosperous than Sweden of today.

High taxes is not the answer.
I agree.

On and on, taxes will be lowered.
However, Sweden can't switch from a 58% taxation of its total GDP to something like 10-20% level in a very short term, like one year.

To navigate is necessary while plain being alive is not, as the old (originally ancient roman) saying goes.
The WAY you navigate is of even more importance.
For some reason, We Vikings have been pretty good at this.

We know our waters.

Especially our home ones.

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