THE SWEDISH ECONOMIC DEVELOPMENT: THE ROAD TO STATE INTERVENTION

Abstract

This paper, based on the Swedish Economy, shows that all countries that are heavily guided by the public sector to develop their economies tend to have a depression as a consequence. Sooner or later the artificial development based on the public sector has to be reverted with high costs in production and unemployment. The paper studies the origin, early stages, consolidation, the beginning of the decline, the decline itself and the difficult present situation of the Swedish welfare state. Inevitably, the Swedish people is going to pay a high price in production and unemployment in order to bring their economy back to equilibrium. However, this is only possible if Sweden first comes back to the domain of the market rules.