Sweden: tax-to-GDP ratio - 49.1%; US: tax-to-GDP ratio - 28.0%. Swedish economy-booming;

[pampango]

ours - not so much.

http://www.oecd.org/dataoecd/48/27/41498733.pdf

Others:

Germany - 35.6%
France - 44/2%
UK - 37.1%
Denmark - 49.1%

These figures seem to show that citizens in progressive countries are willing to tax themselves much more heavily to provide the social safety net that they believe all their citizens deserve.

[dkf]

1. Pah we are paying for Europe's defense and we have to bailout their banks too.

We are funding their social services.

[xchrom]

3. Not scandanavia. Nt

[dkf]

5. What is their defense budget?

Practically nil I'd bet.

And they are part of the European Union. If they are doing so well why don't they bail out Greece, Ireland, Spain, Portugal, etc.

[xchrom]

6. no, they are not part of the eu. nt

[mwooldri]

13. Norway, no. Sweden, Denmark, Finland - yes.

Not all of "Scandanavia" is part of the EU but a good chunk is.

Norway is part of EFTA & party to the Schengen Agreement.

[xchrom]

18. You're right - they joined in 1995. Nt

[pampango]

8. They should be spending more on defense and less on their safety net? There are no US bases in

Sweden, are there?

As a member of the EU Sweden is helping with the bail out of Greece and Ireland. What makes you think that they aren't?

[xchrom]

14. Sweden is not EU.

They have trade deals with the EU but they are not EU, I believe.

[pampango]

17. Actually they are in the EU along with Finland and Denmark, but not Norway.

The European Union is composed of 27 sovereign Member States: Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Republic of Ireland, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom.

http://en.wikipedia.org/wiki/European_Union

[xchrom]

20. yeah i looked it up -- they joined in '95. you are right. nt

[dkf]

24. Actually I'm just upset we are paying to keep them safe.

We should charge them or leave them all to their own fate. But the truth is they can semi-afford these great benefits because we take on the burden of their defense. Just like we take on the burden of ensuring profits for pharma.

The American people are such stooges.

[The2ndWheel]

28. Not sure if the American taxpayer is a stooge, as much as the US Government

likes to be able to do what it want, when it wants. With the only real military left, and acting as the developed world's military, who or what can say no to the US when it wants to do something militarily?

We're here pretty much by default. The US was the last 20th century power standing, and things have just sort of settled to where they are. It would take something big to change it. I'm not even sure it's a choice that the American, or any, taxpayer might have. We're all just sort of caught up in the complexity and momentum of history. It's gotten so big and out of reach.

[eridani]

9. They don't need our defense, so we shouldn't be paying for it n/t

[xchrom]

12. We don't have defence agreements with Norway,

Sweden and Finland the way we do with Europe
Because of their close proximity to the former
Soviet Union.

[mwooldri]

22. Norway is part of NATO. nt

[xchrom]

23. correct again -- i'm off my memory game.

they even sent troops to our recent funny little wars -- bush 1? and in the beginning afghanistan? -- i don't know if they are still there.

[eridani]

30. How does that explain Poland? n/t

[FreakinDJ]

2. Not the "Social Safety Net" that grows their economy

Education - these countries have a Highly Skilled Work Force thanks to a State sponsored continuing education system. That and socialized medicine mitigates or completely eliminates the need for costly insurance programs and the ensuing legal fees associated with them in the work place

[Joe Chi Minh]

4. The Social Safety Net and the rest of the welfare state are indivisible. It is

all part of the same package, the same ethos, and the very antithesis of the right-wing mindset.

[FreakinDJ]

7. I don't agree

Even Corporations recognize the necessity of education as a means to conduct business

Standford / Berkly for the Semiconductor revolution

[Joe Chi Minh]

27. That is a tiny part of the system. Or ought to be. But, no doubt many

of their alumni are from abroad, anyway.

In any case, most, if not all, of those who are home-grown, will have had a private education.

[pampango]

10. Socialized medicine and strong education system, as well as progressive taxation, strong unions,

are all a part of Sweden's progressive society. They all play a role in Sweden's growing economy, as opposed to our dog-eat-dog approach to our economy which has none of those attributes.

[ladjf]

19. They prosper while we in America suffer at the hands of greedy

,cruel thugs. nt

[Major Hogwash]

11. Great point!! They are willing to pay for it.

Here, they expect someone else to pay for it.
Incredible.

I think it's time to tax the churches.

[mmonk]

15. That is because the tax rate is usually unrelated as it always

has been. The tax cut ideology is simply a cult created by dishonest people by and for corporate reasons.

[ladjf]

21. Very important point. thanks. nt

[RainDog]

16. k&r

[mainer]

25. and they get health care!

I'd willingly pay a lot more in taxes if I could just be guaranteed health coverage.

Instead, for the taxes we pay, we get a big bloated military.

[galileoreloaded]

26. Are there 2 Swedens? Cause...they are in as much trouble as we are...

The Swedes are scared, with the Latvia trade currently the worse trade on the planet, with Euro land contracting and the Norwegians spending / income slashed year over year due to the CL market, its time to do something to stimulate their economy. It appears their brain trust has been out in endless Sunlight to long.

The weak development of the economy requires a somewhat more expansionary monetary policy. The Executive Board of the Riksbank has therefore decided to cut the repo rate by 0.25 of a percentage point to 0.25 per cent. The repo rate is expected to remain at this low level over the coming year. At the same time there are several signs that economic activity will improve.
Deep economic downturn

Economic activity abroad is very weak and this hits Sweden hard. Exports have fallen substantially and the situation on the labour market is continuing to deteriorate rapidly. The information received in recent months points to the economic downturn in 2009 being somewhat deeper than the Riksbank forecast in April.

Low repo rate over a long period of time

A lower repo rate and repo rate path are needed to counteract the fall in production and employment and to attain the inflation target of 2 per cent. The Executive Board of the Riksbank has therefore decided to cut the repo rate to 0.25 per cent. The repo rate is expected to remain at this low level until autumn 2010. The Riksbank’s assessment is that cutting the rate to 0.25 per cent will not threaten the functioning of the financial markets.

The Riksbank’s assessment is that after cutting the repo rate to 0.25 per cent it will have reached its lower limit in practice, and that the situation on the financial markets is still not completely normal. Supplementary measures are necessary to ensure that monetary policy has the intended effect. The Executive Board of the Riksbank has therefore decided to offer loans totalling SEK 100 billion to the banks at a fixed interest rate and with a maturity of 12 months. This should contribute to lower interest rates on loans to companies and households.

So the solution appears to be one of forcing people to with draw their cash and jamming it into the economy via negative real savings rates. The Central Bank of Sweden is now pushing government stimulas funds into the domestic banks to help them with the refunding losses on the Latvia Fuck Up financing event.The domestic banks are being forced to push the funds into economy to jump start it.

It is interesting that they expect this policy to be in effect for at least 1 year, and possibly longer. The implications of the future Latvia default/devaluation on the Swedish banks balance sheet is being addressed before the event, not afterwards. Maybe the Sweds are not so stupid, and they know something the rest of the world has not figured out yet. Either way, we will soon be able to see if this version of pushing on a string works... or not.

If it fails to work, expect a run on Swedish banks, as anyone not stricken with Endless summer fatigue realizes this is not going to end as expected.

http://www.riksbank.com/templates/Page.aspx?id=32047

[MrObama]

31. What are you talking about? You're joking, right?

Your info is outdated:

1. The repo rate is 1%. The central bank's current policy path shows rates averaging 2% percent in 2011.

2. On top of having the smallest deficit in the EU, the government now expects to post a BIG budget surplus by 2011.

Sweden has managed to keep the average budget balance positive since the mid 90s while allowing a substantial counter-cyclicality. In 2007 Sweden entered the crisis with a huge surplus of 3.5% (!) of GDP, while the average of EU plus US and Japan was negative.

3. Sweden’s economy Booms – GDP up 6.9%. Record expansion, the fastest since 1971.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9652827

4. Unemployment has fallen from a peak of 9.5% in jun 2010 to 7.5% oct 2010.

5. Swedbank was the Swedish lender hit hardest by the economic crisis 2009, but they are doing just fine now. They have already taken all their losses in Central European Mortgages. Swedish banks is one of the safest banks in the world. “Scandinavia is viewed by many investors as a safer place to put money considering the debt crisis affecting the euro-zone countries."
http://www.businessweek.com/news/2010-05-21/sweden-emerges-as-safe-harbor-from-europe-debt-woes-update2-.html


Q: "Are there 2 Swedens?"
A: No, only one Sweden.

Q: "Cause...they are in as much trouble as we are..."
A: You gotta be fu*ing kidding me? ;-)

[Festivito]

29. What is worse is that that 28% does not include what their 49 does include.

We do not include retirement, health care, long term nursing insurance, and a host of other benefits we must pay for with our already taxed portion of money we earn.

Totaled, we pay more than 50% to get what they get, only it would never be as secure as what they can purchase through their government.

We're screwed and while our butt hurts, we claim how good we have it, loudly.