Quote: Originally Posted by Machjo
Sweden has a very developped social safety net in spite of the fact that it also has open markets. You seem to be saying the two are incompatible. And, did God give the earth's resources for the benefit of some nations, or of all?
Depends what you mean by 'open markets'. Free markets in the sense that we've seen in the last 4 decades throughout the West... free trade, monetarism, de-regulation (especially of financial markets), privatization (especially of natural monopolies and critical economic institutions related to currency regulation), regressive taxation... have all led a disastrous and a completely unsustainable economy throughout the West.
Its very evident in Europe now, but is certainly not limited to that. We will see shock after shock in this environment. It is like a bouncing ball on a downward staircase.. every recovery fails to the regain the previous elevation, and the ball loses energy everytime it hits a new low.
I'm not sure Sweden is an example of final effects of open markets. Sweden has very high taxation to sustain its social infrastructure... but like the rest of the West is finding it increasingly difficult to maintain an integrated industrial economy and full employment. Ultimately that will mean its social safety net will become unaffordable. It's long term prospects might be no better than Spain or Greece in this respect.