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Reflections on Socialism in the Twenty-First Century pp 47–102Cite as

Social Democracy and the Fate of the Swedish Model

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Abstract

Sweden attracted much attention as an interesting socioeconomic role model already in the 1930s, especially after Marquis Childs published his famous and influential book, The Swedish Middle Way (1936). Childs’ main argument was that the “Swedish model” was a successful “socialist” policy with a growing cooperative sector—as a counterbalance to the private sector—and effective crisis management. Of special interest to him was the building of cheap homes for the working class undertaken by the common good (public and cooperative sector). This was accomplished through strong and decisive government intervention in economic life, especially to fight mass unemployment with Keynesian-style policy tools.

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Notes

  1. 1.

    Landsorganisationen.

  2. 2.

    SAP has adopted new revised programs at eight congresses: 1905, 1911, 1920, 1944, 1960, 1975, 1990, 2001 and 2013.

  3. 3.

    Hyresgästernas sparkasse- och byggnadsförening (Tenants’ Savings and Construction Association.

  4. 4.

    https://www.scb.se/Grupp/Hitta_statistik/Historisk_statistik/_Dokument/Befolkningsutvecklingen-under-250-ar.pdf

  5. 5.

    Almost 900 thousand Swedes emigrated to America between 1865 and 1910, a big number in relation to the population of Sweden, which was two million in 1865 and 2.7 million in 1910 (SCB 1969).

  6. 6.

    The maximum pension amount (per year) was 150 crowns for men and 140 crowns for women. In comparison, the average wage for an industrial worker was 1300 crowns per year at the time.

  7. 7.

    Lenin’s visit does not seem to have had any impact on the succeeding events in Stockholm.

  8. 8.

    The eyewitness, Nils Horney, reporter from the major social democratic newspaper, gave the account in his memoirs published in 1969 (quoted in Ohlsson 2014).

  9. 9.

    One of them was a speaker at the event, Per Albin Hansson, later to become Prime Minister of the SAP government in 1932.

  10. 10.

    These events have been recorded in many books and articles, for instance, Klockare (1967), Larsmo (2002); and Ohlsson (2014).

  11. 11.

    In 1921, it changed name to the Swedish Communist Party (SKP).

  12. 12.

    Quoted in Therborn 1986.

  13. 13.

    Wigforss became the Minister of Finance and Engberg the Minister of Education, in the social democratic government that started its 44-year-long rule in 1932. Wigforss was the Minister of Finance for 18 years. Möller was the Minister of Social Affairs for 17 years.

  14. 14.

    See also Introduction by Paul Krugman to The General Theory of Employment, Interest, and Money, edition 2006. http://www.pkarchive.org/economy/GeneralTheoryKeynesIntro.html

  15. 15.

    HSB, The Tenants Association, which is part of the cooperative movement, had been founded already in 1923.

  16. 16.

    Bostadssociala utredningen.

  17. 17.

    Svenska Arbetsgivareföreningen.

  18. 18.

    In the aftermath of the 1968 student unrest, many new radical groups (even parties) saw the light, and the Saltsjöbaden Agreement came under attack again as “class collaboration”.

  19. 19.

    This is just a brief summary of a 77-page document!

  20. 20.

    But Richard Sandler, the chairman of the commission, submitted a report that was just aimed at summarizing the work of the commission.

  21. 21.

    The Liberal Party, the Center Party (Farmers Party), and the Conservative Party.

  22. 22.

    PHM stand for Planhus Hållnings Motståndet = Planned Economy Resistance. PHM was actually invented by the social democrats and used as an invective in the heated discussions.

  23. 23.

    As chief editor of Dagens Nyheter, the largest opposition daily newspaper.

  24. 24.

    Alf Ross (1899–1979) was a respected legal and moral philosopher. His books were often referred to in political science. His most important book was perhaps Why Democracy? (1952).

  25. 25.

    Ohlin had in 1944 claimed in an article that Folkpartiet (the LP) is a “left party” and that it has – in opposition to the Right Party – driven forward universal suffrage and many economic and social reforms (Lewin 1967, p. 297).

  26. 26.

    The popular saying goes: “while it was Per Albin Hansson who created Folkhemmet, it was Ingvar Kamprad (IKEA) who furnished it.”

  27. 27.

    The 30 years of rapid economic and social development after the war (1945–1975) is not unique to Sweden of course. In France, the same period is referred to as Les Trente Glorieuses.

  28. 28.

    Meidner himself refers in this context to the British Labor Party’s (or rather Beveridge’s) definition: “full employment is the situation where there are permanently more jobs to fill than those who can fill them” (Meidner 1993).

  29. 29.

    The party had changed its name to the Center Party in 1957.

  30. 30.

    In a report from 1946 on the future demand for labor in Sweden, a whole section was devoted to the need for an “immigration policy” (Ahlberg and Svennilson 1946).

  31. 31.

    The origin of the oil crisis was the Yom Kippur War between Israel and Egypt and Syria (October 6–25, 1973).

    OPEC stopped its oil deliveries to the United States and Western Europe, with big repercussions on the world economy. The golden years with high growth rates were over.

  32. 32.

    Göran Therborn, a young academic, got an important influence with his book A New Left (Therborn 1966).

  33. 33.

    Fackföreningsrörelsen CitationRef CitationID="CR95">1975</CitationRef>:21 (quoted in Sjöberg 2003).

  34. 34.

    Fackföreningsrörelsen CitationRef CitationID="CR95">1975</CitationRef>:21).

  35. 35.

    The LP changed names several times. Between 1934 and 2015, it was called Folkpartiet (The People’s Party. The LP is used all the time in this chapter for sake of simplicity.

  36. 36.

    Tham later joined the Social Democratic Party and became in 1985 also minister.

  37. 37.

    Anders Johnson: Liberala misstag och svek vi minns (Liberal Debatt, 28 mars 2016) https://www.liberaldebatt.se/2016/03/liberala-misstag-och-svek-vi-minns/

  38. 38.

    SOU 1979:8, Löntagarna och företagens kapitaltillväxt (The Wage Earners and Company Capital Formation).

  39. 39.

    Referring to the “planning debate” just after the war.

  40. 40.

    Government Bill 1983/84:50.

  41. 41.

    He was observed (by a photographer) writing in his notebook: “wage earner funds are shit, but now we have pushed them all the way bit by bit” (in Swedish: “löntagarfonder är skit men nu har vi baxat dem ända hit”).

  42. 42.

    MBL = Medbestämmandelagen.

  43. 43.

    After winning the elections, the new government made a “super-devaluation” of 16%. However, it proved to have no long-term impact. After just 3 to 4 years, the inflation (and wages and salaries) continued to increase more in Sweden than in the rest of Europe.

    ‘

  44. 44.

    https://sv.wikipedia.org/wiki/Den_Nya_V%C3%A4lf%C3%A4rden

  45. 45.

    Kanlihushögern (the Right Wing of the Government) was the nickname (or perhaps rather the invective) referring to the group of young economic advisors at the Ministry of Finance (“Kjell-Olof Feldt’s boys”). In 2019, a book was published about this time (Lindgren, editor 2019), with contributions by many of those involved.

  46. 46.

    The Postwar Program and the Party Programs of the Social Democratic Party.

  47. 47.

    LO had an article in their journal entitled “The government abandons the equalization policy,” and the Minister of Foreign Affairs warned in an article in the party paper Arbetet that “Rightist ideas begin to gain foothold in the party” (Elmbrant 1993).

  48. 48.

    The press often referred to the War of the Roses, when the left and the right in the party started fighting.

  49. 49.

    It would be called the “Tax Reform of the Century.”

  50. 50.

    See, e.g., Lindbom (2011).

  51. 51.

    The coalition government: The Moderates, the LP, the Center Party, and the Christian Democrats. An extreme right party also got seats in the Riksdag (New Democracy) for the first time.

  52. 52.

    Among these, George Soros, the multibillionaire.

  53. 53.

    SAP got 45.3% of the votes, the Green Party 5.0%, and the Left Party 6.2%.

  54. 54.

    It was Göran Persson who, as Minister of Education, in 1989 was behind a disastrous “communalization” of the school system in Sweden (discussed below).

  55. 55.

    Sweden has 290 communes and 20 regional councils (the latter primarily responsible for hospitals and other health care).

  56. 56.

    The rapid expansion of corporations (“risk capitalists”) establishing schools (especially high schools) seems to have taken at least some of the bourgeois initiative takers by surprise. “There was nobody who could imagine corporations in front of us,” says Beatrice Ask, a member of parliament from the Moderate Party (LO 2018).

  57. 57.

    Håkan Svärdman: Urholkningen av. socialförsäkringen försämrar jämlikheten (Dagens Arena 17/1/2017). http://www.dagensarena.se/opinion/urholkade-socialforsakringar-forsamrar-jamlikheten/

  58. 58.

    The Conservative now called themselves “The New Moderates,” also referring to the party as “the new labor party” (sic), with Fredrik Reinfeldt as leader and Prime Minister.

  59. 59.

    In 2014, SAP formed a new government with the Green Party (supported by the Left Party). In 2017, the government suggested that the stop law be reinstated. It did not pass because of the votes of the bourgeois opposition and (new in the Riksdag) the right wing SD (Sweden Democrats).

  60. 60.

    https://www.riksdagen.se/sv/dokument-lagar/dokument/svensk-forfattningssamling/lag-2008962-om-valfrihetssystem_sfs-2008-962

  61. 61.

    Aftonbladet August 14, 2001.

  62. 62.

    In 2014, SAP formed a new government with the Green Party (supported by the Left Party). In 2017, the government suggested that the stop law be reinstated. It did not pass because of the votes of the bourgeois opposition and (new in the Riksdag) the right wing SD (Sweden Democrats).

  63. 63.

    In Sweden of today, it is increasingly difficult to get full-time contracts, especially for women.

  64. 64.

    Katalys produced during 2017–2019 a series of reports that were critically constructive of the dismantling of the Swedish welfare system as we have known it.

  65. 65.

    The urban population grew from 38% to 73% of the total, between 1931 and 1969, in less than  40 years.

  66. 66.

    The Gini has a scale from 0 to 1; the lower the coefficient, the more equality.

  67. 67.

    Disposable income is factor incomes (wage and capital income) minus taxes plus transfer payments (cash social security benefits).

  68. 68.

    Capital income consists of interests and dividends and capital gains (buying and selling property and other assets).

  69. 69.

    Two-tier health systems exist in many countries. As a matter of fact, it is rather rule than exception.

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Authors and Affiliations

  1. Lund School of Economics and Management, Lund University, Lund, Sweden

    Claes Brundenius

  2. UNU-MERIT, Maastricht, The Netherlands

    Claes Brundenius

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  1. Lund School of Economics and Management, Lund University, Lund, Sweden

    Claes Brundenius

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Table 3.9 Results in the parliamentary elections, 1928–1979 (% shares of total votesa)
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Brundenius, C. (2020). Social Democracy and the Fate of the Swedish Model. In: Brundenius, C. (eds) Reflections on Socialism in the Twenty-First Century. Springer, Cham. https://doi.org/10.1007/978-3-030-33920-3_3

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