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GOV_312L_march21(2) - Feb 20 Social Democracy in Sweden 1...

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Feb 20 Social Democracy in Sweden 1. Underlying Values of Social Democracy a. Similarities and differences to the values underlying liberal democracy i. Liberal Democracy 1. Individualism a. “Fair rules” 2. Equality of opportunity ii. Social Democracy 1. Equality a. “Fair outcome” 2. In between individual liberty and social equality a. Compromise/Balance 3. Equality of opportunity a. But not with the inequality of outcome i. Provides support for people ii. Basic floor of protection b. Social democracy as full democracy i. Sweden is a FULL DEMOCRACY not Socialist ii. Gradually reform liberal democracy 1. Progressive tax iii. Not less democratic than liberal democracy 1. More participation (85%) iv. Way for lower social classes to advance 2. Driving forces of Social democracy in Sweden a. The importance of universal suffrage i. Equal political opportunity to all 1. Political equals ii. Large number would have political influence 1. Everyone’s votes have equal value iii. Political Demand 1. Reason why Social democracy is a full democracy b. The importance of collective organization i. Large number or poorer people ii. Must have an institutional opening which translates large number into influence 1. Able to make change iii. c. The rise of labor movement i. Labor unions = social democratic party 3. Historical origins of Swedish Social Democracy a. Social-Structural factors i. Similar social factors ii. Common ground b. Political-Institutional factors i. Institutions push for collective organization
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FEB. 22 Social Democracy in Sweden - II 4. Labor and Business: The attempt to find a balance a. From confrontation to compromise i. Used to have a lot of conflict & confrontation b. Organized consultation between business, labor, and the State (“Corporatism”) i. Shifted away from conflict (1930s) ii. After social democratic party took over in 1932 1. Strengthens trade unions, forcing business to cooperate and compromise 2. Both sides gave up their “maximum” goals/demands a. More centralistic view from both sides b. More regulation, redistribution but not taking away property 5. Crucial policies and programs of social democracy in Sweden a. Very limited “Socialization” i. Went from confrontation to compromise ii. Could not nationalize everything 1. As a result Swedish economy has been largely in private hands b. Government intervention in the market i. The regulation of business 1. Interference in the autonomy of business 2. But because of confrontation economy is market oriented ii. The channeling of investment 1. Did not take over private property 2. Capitalist free market but that is regulated a. Incentives and constraints to people invest back i. High taxes on profit so people invest instead to pay low taxes ii. Government subsides investments iii. Active labor market policies 1. Unemployment insurance a. Pay you temporarily if no work b. So workers don’t take the first job they can find 2. Invest in human capital instead of just unemployment insurance a. Retraining, retooling, education, etc i. For industries that become obsolete ii.
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