gov 312L, 02.27.08 - because of his policies) This hit...

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NOTES – 2/27/08 Social Democracy in Sweden – IV 8) Limited retrenchment of social-democratic programs a) The political inviability of radical retrenchment b) The end of further expansion c) Moderate cuts 9) The prospects of Swedish social democracy a) Sweden’s recent economic success b) Implications of European integration Carl Bildt – became prime minister in 1991; conservative that approved of Margaret Thatcher’s attempts to switch to liberal democracy; tried to make drastic cuts It DID NOT work: POLITICALLY – unpopular to cut benefits/entitlements, especially for those suffering from the cut. ECONOMICALLY – economic crisis at the time, and unemployment/economic adjustment to the cuts causes the welfare state to worsen 1994 – Social Democrats re-elected because people didn’t like Bildt’s policies. Current coalition, which is conservative, makes very SMALL cuts (limited retrenchment, “slow trimming”) World-wide recession in early 1990s (like Carl Bildt, Bush was not re-elected
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Unformatted text preview: because of his policies) This hit Sweden especially hard, but Sweden recovered and is now an economic success. In recent years, government has de-regulated businesses to become more competitive. Sweden knows they cant compete with China and other cheap labor countries, but they specialize in market niches of higher quality products. NOT EVERYBODY competes with low quality/low price/cheap labor. Sweden has high quality/higher priced/highly-skilled labor force. Why make a big shift economically if you are doing well? Sweden has a welfare state AND economic success even though conservatives say having a welfare state is not viable. Sweden has been pressured to go towards economic integration, which has caused them to join the European Union; they had an incentive to join (Sweden is an export-oriented country), but the EU makes decisions for Sweden. Margaret Thatcher did not like the European Union....
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