Epiphanyblog

All about ideas…

Sweden’s economic model may lift US economy

with one comment

The Financial Times provides a thought provoking idea worthy of consideration about how to move forward out the economic malaise in which no one appears to have any solutions.

In the early 1990’s Sweden had a near catastrophic banking and economic crisis. To solve their problem, the government brought together business and labor along with government to work out a long term solution. As a result of the negotiations in the ’90s, Sweden has been able to bounce back from global economic collapse to an expected 4.5% economic expansion this year.

The events of the past three years have only strengthened the case for a system in which politicians, businesses and trade unions agree on the best ways to support long-term economic growth – and then stick to them. The past focus on strong public finances left lots of room for manoeuvre when crisis struck: the fiscal stimulus in Sweden was substantial relative to the country’s size. Companies, meanwhile, have worked consistently with trade unions to balance job security and wages, with the government providing a generous social security “safety net” as a back-up.

What if Obama brought together business leaders, great and small, with labor and politicians to work out – negotiate – how to expand the U.S. economy? Surely, if these negotiations can work in Sweden and Germany, surely they could work here if the people chosen were dedicated to solving the structural economic problems facing the U.S.

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Written by Valerie Curl

August 23, 2010 at 4:32 PM

One Response

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  1. Astounding article bro. This kind of is just a exceedingly nicely structured posting, just the tips I was hunting for. Thanks

    network camera

    December 2, 2010 at 11:28 PM


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