The Economy of Sweden
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- Опубліковано 25 гру 2024
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Sweden is a beautiful Scandinavian country famed for its beautiful people, flat-packed furniture, PewDiePie and meatballs. Now of course if you hadn’t guessed by the channels title we are only here to look Sweden's economy, and it is a remarkable one at that. Sweden is home to one of the highest standards of living in the world and is often held in extremely high regard when it comes to workers rights and general quality of life indicators such as working hours, happiness rates and life expectancy. It is also a nation with a rich history of setting the trend for other economies to follow, Sweden is home to the Riksbank founded in 1668 it is the oldest central bank in the world, blazing the path for monetary policy that dictates every major economy in the world today.
So how did it get here. We have explored rich nations with strong welfare systems that seem to do everything right on the channel before… most notably Norway, Sweden's little brother the to west… But Sweden is slightly different in the sense that it was not blessed with the Norwegian sea and its abundance of oil and gas, so it was not able to build up a sovereign wealth fund with oil profits like Norway was and so on paper it is citizens are poorer than Norway's but their quality of life seems exactly the same.
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📚 Want to learn more about Sweden? We recommend reading "Sweden, Enlarged Edition: The Nation's History", by Franklin Scott and Steven Koblik 👉 amzn.to/3h6N6gv (as an Amazon Associate, we earn from qualifying purchases)
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#Sweden #Entrpreneurship #Economics
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Sources & Citations -
Pestoff, V., 2004. The development and future of the social economy in Sweden. The third sector in Europe
Westlund, H., 2003. Social economy and employment-the case of Sweden. Review of Social Economy
Anderson, K.M., 1998. The welfare state in the global economy: the politics of social insurance retrenchment in Sweden, 1990-1998
Bengtsson, T. ed., 2012. Population, economy, and welfare in Sweden. Springer Science & Business Media
Florida, R., 2006. The flight of the creative class: The new global competition for talent. Liberal Education
Sarafoglou, N. and Haynes, K.E., 1996. University productivity in Sweden: a demonstration and explanatory analysis for economics and business programs. The Annals of Regional Science
Engwall, L., 1992. Economics in Sweden. London: Routledge.
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Make a video about Finland
Why dont you talk about argentina? Here se have 106% taxes for a company, if you want to make 100 USD yo have to make 206 USD, yo give 106 to the government, where 56% of a new car price is taxes.
Where you need 56 permissions to cross one piece of jam from buenos aires province to buenos aires capital, thatt they are in the same state.
you are absolutely clueless if you think doctors make insane amounts of money in the USA. doctors generally are not in the 1%. don't be a dunce.
It was a cool video. I was surprised to learn we have a decent military to be honest.
My God this is such inaccurate BS that you should be ashamed! This makes a mockery of Sweden's historic development and how economy plays in!
The Swedish economy is NOT an example to follow. Their currency has depreciated more than 30% over the last decade. The basic wealth of Swedish society was created from the 1880'ties and on due to liberal politcies that benefitted all especielly with education and up to about 1960 where all the benefits from WW2 had been harvested. Sweden's economy rides on 60+ year old companies.
The reason for Sweden's many "entrepernours" is that from the 1960'ties and until about 2000 the labour market was so rigid that you could not fire employees and instead of an employee you hired "consultants".
When we are talking Sweden's huge metal industry that Sweden has the best and cleanest iron ore anywhere in the world leading to a 100 year dominant position in anything from ball bearings to ships.
This is really a mind numbing stupid report this - and given the COVID19 deaths in Swedish retirement homes it makes a mockery of the main conclusion of competence at all levels. Locking elderly people up in COVID19 infected nursing homes is just evil.
I worked at KTH in Stockholm for 2 years doing bio-engineering research. It is true that I never felt poor nor rich. They have a thirst for new technologies and social innovation that is deeply ingrained in the national narrative. Innovation is praised above money. When a scientist publishes a strong paper, it sometimes make the headlines on national TV. They even host a super fancy dinner in the building where they host the Nobels once a year to thank international scientists for choosing to work in Sweden. An interesting effect of wealth equality: public transportation is clean and efficient and you don't feel like a lesser citizen for commuting this way like in the USA or Canada.
@Pawan Nirpal Of course! Best of luck on your adventures.
@Pawan Nirpal We don't need you're Microsoft tech support
@@martin7upp627 He said "computer scientist" not scam caller
@Pawan Nirpal Yes absolutely! There are a bunch of Indian computer scientist and programmers at the company I work for and they are really sought after
@Kryptonian youre very welcome. I am an indian myself and there is a big shortage of computer scientists and other stem related professions
Wendover: Planes
RealLifeLore: Corollas
Economics Explained: Norway
PolyMatter: China
I think those four are the A Tier youtubers
You can add kurzegast and some others too
EE: stability
Atlas Pro : Africa
Wonder Why : accent
The Infographics Show: torture
Should be renamed "The Swedish Dream"
You won't get filthy rich but you'll have the greatest opportunities and support you've ever had to follow your dreams.
@Zuurker U mind elaborating on that?
Swedish industrial politics favored larger industrial conglomerates a bunch. The scand countries wants to increase their wealth, and rationalized large-scale production was seen as the way forward.
There actually is a term for it. It's called "The Swedish Model". It's kinda like the American dream but with more emphsis on the collective instead of the individual.
except if im not mistaken sweden has more billioners than USA per capita
@@Defenestrering Yes they do, double the amount actually lol. Turns out giving everyone an opportunity to follow their dreams actually results in a higher number of ultra wealthy
Random Norwegian here. Just came to tell I love Sweden and all other nordic neighbors ;)
Random Swede here. Came to tell you the same :P
Takk det samme, ha det gött!
Random Swede here. Just came to say, denmark isn't invited :P
@@IsakMagnusson01 Random swede nr2, I will allow them, think of the BEER. If we got Carlsberg, every one will get along just fine :D
r/Norway never shutting up about Sweden says otherwise
I visited this country twice. Wow, I love these people. They gave respect to me, unimaginable. Great people creates great countries. Love from India, Chennai.
I'm happy to hear that you had a great time in my country, I wish you and India great success.
I too am glad to hear you had a good time here in Sweden - makes me proud. ^^ Cheers, and I wish the very best for you and all of India!
It's really good and mutually beneficial for both the parties if educational and work migrants and natives are together. I don't understand why Sweden is accepting culturally(in terms of both work ethics and just the general outlook) different people in their nation when they could accept more educated migrants for tackling their birth crisis
We only require a little tab of respect and we'll shower you with respect, glad you enyoyed you visists :)
Bob and vegana
Could you do a video about an ex-communist state like Romania or Poland?
Yup, would love to see more videos on eastern european / balkan nations and their transition into modern economies!
@Ring-a-ding-ding baby Same in Lithuania. Former communists simply took over, and ruined everything.
A comparison between something like Poland and Hungary or Ukraine would be cool actually
@@Sinful_Citrus coming from a balkan nation-i wouldnt call what we have here "transition". We had it better under the previous goverment.
@@00784865 Hey, maybe I could have phrased it better. It'd just be interesting to see an overview of how these economies developed and their place in the world stage nowadays, for better or for worse. It'd give people a broader perspective they don't currently have!
he's obsessed or jealous on "marble man" :D
Who is the real winner, marble man or youtube?
But aren't we all?
@@ssruiimxwaeeayezbbttirvorg9372 60% marble man 40% youtube
I've watched every "marble man" video and I've learned a lot in his struggle to make his strange but wonderful contraption. This video keeps making jabs at him.. but the making of the marble machine has been a great ride.
The comment towards the end is kinda funny, about how the marble man has to reciprocate to the state ones he makes it big on UA-cam, given the fact that marble man moved to southern France instead of staying in Sweden 😅
One minute in and Norway is mentioned.
It would be weird if it hadn't, Norway and Sweden are siblings.
@@dæmnKris no.
Norway is EEs 94 Toyota celica
@@mr.boomguy cousins
@@mr.boomguy Norway was an oppressed Danish province for 400 years. When Sweden came things got a lot better.
"...Has a suprisingly strong military!"
Me as a Swede: ..Wait what, we do??... :O
No. Not unless you use the totally worthless global firepower page as a source. That page is beyond stupid.
it's hidden on the northern forests i guess, but they do have lots of fancy toys at least
Vi har faktiskt det hahaha. Vi har tillgång till några av världens bästa ubåtar och flygplan. USA har bland annat lånat våra ubåtar för att de var så bra... Och de slösar 700 miljarder dollar på sin militär varje år.
I try to look at the reach and ambitions each national military seeks. A lot of the European mid-sized nations might prioritize mainland defence and the cooperation within NATO Europe before expeditionary warfare a continent away.
@@ssiipp7848 It's expensive to keep a standing volunteer army fighting at least two low-intensity wars across the globe at any given time.
Swede here. Just want to comment on the wealth inequality and taxes. While we do have extreme income taxes and as mentioned much lower capital gains taxes, this also includes extremely subsidized property taxes, no wealth tax, inheritance tax or gift tax (not entirely sure on the translation). In other words, while earnings are smoothed out, wealth is not. Sweden keeps their billionaires by not taxing the rich and instead taxing middle class through income. Might change soon if current government remains but it's sort of interesting that a country which prides itself on its equality is also kind of a tax haven.
It’s win-win
if sweden taxes the rich u can pretty much say good bye to all business investing in sweden. they will just move to another country
Yes, we have played the Race to the Bottom game. Any taxes on financial speculation and/or wealth need international treaties or we'll end up feeding the tax havens even more. The same tax havens that shelter russian oligarchs, african dictators and western billionaires that sponsor politicians that stall demands for less secrecy.
I'm sure I'm being reductive in my thinking of this, but considering Sweden was dominated by the Social Democratic Party for decades during the postwar era, and it continued to remain the largest parliamentary party since then, I don't see why we're waiting so long for Sweden to make its taxation more progressive. I'd be interested to hear your perspective.
Bryce Springfield there’s no need for taxes to become more progressive in Sweden now because Sweden’s income taxes are already very progressive and it works fine so why change it?
So basically all Swedens are born with the same possibilities, but everyone can decide for themselves, if they want to focus on making money or not. Great economy!
Greetings from Austria!
Average Joesson thats a straight up lie, my mother works as a nurse, she could afford to raise Me and my brother in a big nice house,as a single mother.
@Average Joesson Complete and utter lie, my mother is a teacher and owns the house she lives in.
@Average Joesson WTF are you talking about? Clueless comment. My mother was a factory worker her entire life, yet she owns a house AND a summer house.
@Average Joesson It sounds like you're a liar. How does it feel to be a liar?
Average Joesson liar liar pants on fire
As a Swede, I've been waiting for this haha. Also liked the ABBA intro!
Sorry, but what's the name of that song?
@@spyder00779 Rich Man's World
Pretty fitting haha
@@cosmobilling9699 I thought of the Henry's wives music video lmao
It's funny, I was away from the screen and I didn't know which video was coming up, I heard that music and guessed right away that it was going to be about Sweden.
Cosmo Billing isn’t it called money money money
You forgot one crucial detail about Sweden's success: its pretty much the only EU country where businesses rely much more on financial markets than on banks to gain capital.
Do you mean investment funds? I don't know how Sweden's financial markets works.
@@Parcian- Aye, but more generally I mean capital markets
@@Jokkkkke Thx!!
@@Jokkkkke US Banks will fold when the boom die. No vision.
there's also govt provided business loans for startups up to ~1MSEK. If you make it, you pay it back, otherwise you don't. Basically, govt provided seed funding, in exchange for 0% of the company
Hehe, as a doctor student. It's fun to see someone say they don't make a lot of money. My girlfriends sister and husband works as doctors in US. They were so proud that the average salary of US doctors we close to twice as high. However.
1. No paying for child education.
2. Retirement covered by taxes you pay.
3. Healthcare covered by taxes.
4. Not turning sick people away due to monetary reasons.
This is excluding a bunch of other perks. But the best one is certainly point 4. Not having to turn people away or forcing people to deal with for profit health care insurances that causes people to go hundreds of thousands of dollars in debt just to pay for it.
Gotta love it
All the developed nations except the USA has universal health care. Yes USA should have that but they do not want it. I am from Canada but was in the USA often more often then Canada my home. I was asked about the health care system and taxes . I told them the taxes are not that high and yes everyone gets the same health care. Most of the people I spoke with about all of that said nope . They prefer to have health care only for those who have a job or had a job and now have a retired . That is their choice. So be it
I'd personally not depend on the retirment being covered by taxes.
As a Swedish uni student (I study software entering) I love that my family didn't need to save up any money for my education, because of government subsidies, a generous student loan and the fact that I only need to pay for the actual living costs.
This means a lot to me because it makes higher education available for everyone that wants it.
they did, they just didnt have any choice in the matter. Nothing in life is free
I'd take Sweden's system over crippling student debt any day of the week.
@@mcsquisherton no doubt. However don’t for a second believe that Sweden is a paradise without faults.
@@conebear9291 can you mention and elaborate some of those faults???
@@mcsquisherton So you'd rather be saddled with high taxes for life instead of student debt for a few years?
Norway and Sweden. Best pals. Covered in Economics Explained.
Finland, Denmark and Iceland: May we join in the fun?
+No One Here Gru face meme: *NO*
We in the UK are geographically close of course, but sadly we have dinosaurs in charge.
Greenland: Inuulluarina
@Boris Erdogan And then manage to turn it around, few of the countries that did
Austria should obviously join as well 🇦🇹😌
EE: "...A surpringly strong military."
Sweden: **Shifty eyes**
It is the natural response to sharing The Baltic Sea with Russia
@@tyros4372 a few years ago it was speculated that a Russian submarine was in Swedish waters, although it has not been confirmed.
@@tyros4372 The natural response would be to actually *have* a military. Currently, Costa Rica could probably invade Sweden successfully.
@@eddebrock We do have a military and it is currently recruiting, we just haven't used it a lot
@@eddebrock We have a small amty that is expanding slowly as of right now. But even though we have a small army we have a huge tech advantage in military equipment than costa rica for sure. And also costa rica doesnt have an standing army since the 1940s or 50s.
Thanks for the time and effort 🙌
hanks for the comment :D
@@EconomicsExplained
hanks you for the video!
Great video, EE!
As someone from Malmö, it made me very happy that you included so many beautiful shots from my lovely hometown. I actually didn't know about the wealth inequality, so I can definitely say I walked away with something new. I can tell that I'm not always politically aligned with your views, like the off-hand comment about "subsidizing the lifestyles of inefficient people", but that just makes me happy to broaden my own views with perspectives of people across the board.
It's hard not to feel a little bit patriotic after having heard your kind words for our country, which is not something I feel that often, so thanks ;)
People tend to complain about their own country. That is a universal view of people. They usually take for granted what they have and tend of focus their attention on what they don't have and then complain about it.
Didn't expect you here!
I don't think he necessarily thinks politically that's what happened.
He mentioned it as a disadvantage, while also mentioning the advantages. Everything in life has pros and cons.
Bruh ur videos got so much better! RUN THIS VID BACK WITH UR AMAZING EDITING SKILLS
Norway
EE: I'M COOOOOOOOOOOOOOOOOMINNNG
mmmm what can I say
@@EconomicsExplained im pretty sure he made a norway video already
Friendship ended with Fossil Fuel Norway.
Now Democratic Peoples Union of Entrepreneurship Sweden is my best friend.
@@mr.boomguy I think the OP is joking about how "excited" EE gets by Norway
This video is sponsored by Wintergatan Marble Machine :)
oooh. Love that machine :D
Lol
Also known as the 'wintergram' (search box at 8:19)
This was really interesting as a swede. I feel like the issues our country has comes down to mismanagement in a few sectors, and our sometimes ridiculously complicated bureaucracy. One of the main reasons why we have a huge deficit of rental apartments in most, if not all, of our cities.
The swedish construction market is messed FUBAR. But dude, overall we have in fact a very efficient bureaucracy compared to other countries. The Cost of Living issue is something we share with other nations and there are other more salient factors to scrutinize, like a severely bloated financial market which means all assets attract insane amount of investment capital that pushes prices ever upwards.
Also, our right-wing govs have found delight in selling off social housing to private entities, creating a property market ripe for speculation that now looks like a full blown bubble. It has driven segregation and made swedes outrageously indebted.
Anyway you look at it, blaming bureaucracy is sort of lazy.
I never felt like entrepreneurship was a big dream or even encouraged here in Sweden.
I went to live in Australia for 6 months and I felt like entrepreneurship was in the air. So many people dreamed of running their own business there.
Yet, Sweden is somehow silently encouraging entrepreneurship.
I lived in Finland for ten years and a lot of what you cover was apparent especially after I returned home to Ireland. For the past 13 years I have found myself increasingly unhappy with the political failures of our gov. to address the "housing crisis" and health care. As a good earner with a decent deposit saved I cannot find a property to buy after 13 months of looking. The gov.'s construction strategy, AirBnB's proliferation and the general population's ostrich response perpetuates a situation that is making insane profits for a few well placed stakeholders. When I see young people I feel sad for the future they don't yet know awaits them. I'd love to see your analysis on the situation.
Will you do in the future Denmark Iceland and Finland economy explained
I think the nordic countries excluding norway, are very similar in their economics
@iceth:rn "Iceland, the Banana Republic" what exactly do you mean by this
@iceth:rn nema hitann
@@Maxpen14 In general yes but as a Dane I find the differences very interesting and I think other people would as well :)
@@peterparkour6455 well yes its interesting to see others perspective about our countries. Im from finland and would like to see video about us. I was just wonderimg if there is enough difference to get content for a video
You're a lifesaver I literally have a presentation on the business climate of Sweden tomorrow and this helped a lot to explain it
What do you think is important to know about it? Did the audience have any questions there?
Ohh boy, now I am interested too!
As soon as the tax rate was mentioned, Americans started pushing the dislike button...
Just the ones who’ve been brainwashed by elite propaganda. There’s a sizable chunk of us who would love to adopt the Scandinavian model.
@@EVOPE NO THERE IS NOT
lol
@@EVOPE I'd say that this goes into the beliefs of every single Republican and in fact also most Democrats. The likelihood of such a model even being taken seriously by US politicians is close to zero.
@@stijnhs
Such a model wouldnt work in the whole US even with a strong political will, you may do that in a state level like New Hampshire and Main but doing it in a Federal level will be suicide.
Culture, economic conditions and traditions influence how people react and does to an implemented system and the US is a large country with different people and cultures.
Alcohol Prohibition works in Saudi Arabia but it didnt in America for example.
Great video! Another positive point in Sweden is that you can take unpaid time off work to create your own company and try new stuff, without risking your job!
How is govt-subsidized non-working positive? A job that is politically protected is unproductive and subsidized by productive people.
@@TeaParty1776 because it gives the chance for someone to become more productive by starting a new business. its not like they dont hire someone to cover the production lost by "john" going to try and start his new business. but "john" knows he can come back to the company without any consequences. in america you can kinda do that too, but chances are you are going to suffer consequences (pay cut, demotion, passed up on a better position, ect). the way they see it is that "john" is 1 production, but if "john" starts a new business then "john" becomes 2 production, 10 production, 1000 production (all depending on how many people "john" has working for him.
@@thedebate4836 You Marxists are intellectually lost in the Garden Of Eden in which God has been replaced by society. Out here in concrete reality, each individual has a moral right and moral responsibility to use his own mind to guide his own life for his own happiness. There is no "it" which gives chances.
@@TeaParty1776 I'm not sure you understood the concept here. As an employed person, you have a freedom to get 6 months *unpaid* leave (only once per one employer), to try out starting a new business that may very well eventually employ even more people. Society is not at a loss here, only the employer suffers a little bit.
@@Kolja1987 > only the employer suffers a little bit.
Man has an absolute moral right to his own life, to be the beneficiary of his own actions. Morality is a rational guide to life and happiness, not faith in sacrifice, suffering and death. Christianity and Leftism are blood-drenched anti-humanism. Man's mind ,producing material and spiritual values, is his guide to life.
Anyone who thinks strong worker unions is bad, has to explain how Germany is the 4th largest economy.
I guess it depends on what the unions themselves do. Brazil has more worker unions than anywhere in the world, and it's probably close to the world's worst case scenario for anything where unions may have some role. I'll concede that maybe such unions are weak and numerous and possibly therefore futile, so maybe actually stronger unions would be a whole different thing. But I'd still bet something on "there's more to it," like the absence of a culture of corruption and scumbagness (or relative absence, mechanisms somehow dealing with it, etc).
Well the USA 1 is fourth and Germany is a distant 4th. So if worker unions are good why isn’t Germany 1st?
Tomi Gjikondi it’s difficult to compare a country with 83 million people to a country with 330 million
@@petitio_principii I would say the same exists in South Africa. In principle the unions serve a good purpose but far too often they have ended up keeping people in jobs who are unproductive or who should have been fired
Well china is first so...
Serious Question. How are you able to pump out Videos at this rate? You upload twice a Week.
lotta coffee... also I would do research in my own time regardless of making video's. This is just an outlet to share it with an audience :D
@@EconomicsExplained Nice, we do appreciate your hard work! 👍😁
And mediocre stock pictures only loosely related to the topic (or contradictory, like... from the wrong country).
Sorry EE. But don't worry, I still like your videos, because they're not about the pictures, but about the great essays. You really know how to write/speak.
low quality research + a string of "facts" from wikipedia and a few blogs in order to seem legitimate. It´s easy to have high quantity when quality and accuracy are of no concern
@@MrDemonshalo I'd honestly be interested in how you arrived at this conclusion. Can you give examples of poorly researched arguments?
I am a simple person, I hear ABBA's "Money Money Money" at the start of an economics video - I click like.
Imagine a country that is actually well governed
Sjk Tfrds Not Sweden
@@fretkoe Still better than most other european countries
ahahah, lol, no
3.14159265358 lol you alarmists already said that ten, twenty and thirty years ago. So may I ask, when will we finally be replaced with africans and middle easternes? 😂
@@TheI3lackPredator Well they have grown from 1-5% in that time to 20% of the population and it's going faster and faster so you will have your wish soon enough.
The thing about Swedish business ownership, at least in the IT sector, is that lots of people are freelancers/self-employed or consultants because it is a way to reduce risk for employers. The union protections make it hard/expensive to lay off (even incompetent) people, so it is wiser for big companies to hire as many external manpower as possible. Aside from that apparently it is quite easy to start your own company there.
You got it right. The safer the social safety net, the more people can dare. Americans would say it causes people to be lazy, but your video just pointed out the opposite. Apart from that I have experienced life in many different countries, and I prefer to pay much higher taxes, have more content neighbors and to be able to walk through the park at night without being afraid of getting mugged. Priceless. The smaller the difference between the haves and the have-nots, the more peace you will have in society.
Could you do a vedio on the economics of The Roman Empire.
*Tariffs intensify*
Vedio I like that.
@Ring-a-ding-ding baby the main driving force in the roman empire were slavery and plundering surrounding nations, low taxation didnt really mean anything, and were mostly for the wealthy citizens living in rome. It was a warmachine
@Ring-a-ding-ding baby Actually the vast majority of their territory was losing money until they managed to invade Egypt. After capturing that territory, and issuing "grain stipends" or whatever, they freed up the lowest class to start buying luxuries from Egypt, which drove the economy forward.
And then they found India, who they started trade with. And the Indians were actually quite manipulative, doing various things that I can't entirely remember. But it basically involved manipulating how currency changed hands between Romans and Indians, eventually leading to the devaluation of the Roman coin.
@@tobiasechwald3058 That is not really true since the Empire went through very long periods of peace. It profited much from the East and trade amongst its citizens, the Eastern half of the Empire was much wealthier because of that.
No oil but long mining tradition. Sweden is Europ's largest iron and second largest Gold producer if I'm nit mistaken.
true, we've made quality steel for ages, the industry is challenged by china now when china have stopped only producing low quality stuff and can produce acceptable levels of steel for a lesser price class, swedish steel have been the "quality steel" expensive but good. (few defects and the like)
It's generally finland, our neighbour that gets credited with the gold, we have A nice mine but generally on a world scale we produce "nothing", i honestly knew nothing about this despite working in the inspection industry so we get around to most mines and factories. (or well hear co.workers talk about it that live in the areas where the mines are when we rarely meet during different high seasons......so i guess it's a other company that got that mine's contract)
The gold we produce is not significant in any regard compared to the economy, we do make good use of our natural resources though.
Hydroelectricity, mining and logging are what gave the Swedish economy a start and has continued to boost it ever since.
Yeah, the ore fields are still a large business. Logging is also a big business like in the rest of the wooded belt that stretches through Finland into Russia. Sweden has been able to take advantage of hydroelectrics that supply a large share of the nation's power.
There are people who want to prospect for uranium now and then.
I work in that nice gold mine, the world cleanest mine, typical Sweden
More steel than gold, but yes mining.
Finally, I’ve waited so long for this.
Norway won the lottery. Sweden innovated and worked hard.
In the video you mentioned that “Sweden didn’t win the resources lottery” but I want to point out all the Swedish iron ore that has made the country billions. I also want to add that one of the reasons for Swedens big economy is that it wasn’t involved in ww2 and therefore became an economic powerhouse after the war. Since it didn’t need to rebuild itself.
Very interesting video as always ! It seems that all nordic countries are incredible in term of combining economy and social rights. I would really like to see a video on the French economy (social and health system particularly)...
>combining economy and social rights
Man has free will. He can choose contradictions. Sadly, reality is consistent.
@@TeaParty1776 What?
@@thetimelapseguy8 Individuals have rights. Society is an abstraction. Abstractions dont have rights.
@@TeaParty1776 I think they meant Sweden has a productive and free market economy, while implementing strong social services and workers rights. There's nothing contradictory about this, proven by the countries that run on this system.
@@thetimelapseguy8 Sweden has a mixed, contradictory, economy of freedom and govt controls and looting. Contradictions are possible to mans free will mind.
Another part that was missed on why there are so many entrepreneurs in Sweden is that you can get a gigantic subsidy boost what you start it. You just have to convince a state official that your idea isn't insane and you get a guaranteed monthly living wage for the first year of your new business. And no matter how you business turns out if you make no money or a billion you get to keep that monthly wage for a year. (or it's 18 months, It's a long time since I learnt about it).
Another fun fact is that Sweden has one of the best social ladders in the world. I don't remember if there's anyone better but its one of the best countries to be born poor in because it's one of the easiest to earn money in.
As a guy with mostly swedish and finnish ancestry, including my dad's great grandpa who came from the area, it's refreshing to hear about success. They mostly settled in minnesota, michigan, north dakota, parts of canada, etc. Later on I moved to AZ to find more better work, joining a group there who was doing the same, but still visit both the Midwest and the Nordic/European countries from time to time (budget permitting)
"hey maybe we could have some sort of social-"
"no that never works, Venezuela"
"but Sweden-"
"Sweden isn't Venezuela, so it can't be socialist. They just have good public services, strong workers rights..."
"cool why don't we have public services and workers rights?"
"I just told you, Venezuela!"
A stark difference however between socialism/communism and democratic socialism - a capitalistic engine runs in the core of the economy of a democratic socialist country
By definition, socialism is a transition period between capitalism and fully established communism, so, no, Sweden is not a socialist nation.
@@rasmusengstrom8983 Big difference in social democracy and democratic socialism
Sweden is not at all socialist, we have a free market
2510LuL You’re right, had them mixed up
Could you perhaps do a video on the economy of the Netherlands, apart from its tax haven reputation?
I love your videos btw
He already has: ua-cam.com/video/i0FOUR5x5Rg/v-deo.html
@@DSTimelapseHD That's just about it being a tax haven, a more general one would be dope too :D
Agreed, we Dutchies need some more info!
SPECE
...yeah sorry, had to.
We "have" a saying "gör din plikt, kräv din rätt" "do your duty, demand your right".
The problem nowadays is that alot of people only wants the rights.
And those people vote for politicians that give it to them. Death of a democracy. Rise of an empire?
Never heard that saying in my entire life
@@tapp3r109 It's basically the social democrat parties slogan in Sweden. Kind of outdated now though, since the lower class people who actually work are increasingly voting for the Swedish Democrats.
Sveriges arbetslöshet är det lägsta sedan finanskrisen 2008. Det har minskat under hela 2010-talet. Sysselsättningen är den högsta på hela 2000-talet.
For people whom speak english: The unemployment rate is the lowest since the financial crisis in 2008...
@@ssiipp7848 According to official statistics. If you trust them you are naive.
Thank you for doing my country. Really interesting video! Good explanations and a fair portrayal. Keep up the good work.
@Average Joesson Fair critisism. The housing market in the urban areas is indeed an issue, restricting labour mobility and increasing the reliance on shadow banking, which needs to be addressed. The student-specific apartments and dorms is mitigating this issue however, and we still have high possibilities. My father was a wielder and my mother a cleaner, and I have a law degree.
@@yoda06435 yeah and it didn't cost you like $150 000 either
It is important to remember that in the US, we have National and State income taxes. so a top Earner in California pays the top national rate of 37% PLUS the top Californian rate of 13% making the rate = 50%
Don't forget sales tax/VAT/GST and all the extras. Lots of money get taxed more than once.
And top rates are rather pointless in general. It hardly matters in big picture if it's 40 % or 55 % if it only affects 1 %.
You should chart the overall taxation in different levels of income to get real picture. There's brilliant video on thi in Money & Macro channel where they compare Netherlands and US from middling income perspective.
And the taxes in US. More I learn, more I realize how small these differences actually are world wide.
There's difference yes. But it's more like US citizen can perhaps drive a 5 year newer car than me in Finland, because of taxation. Not like they have a bank and investment accounts three times of what I have.
@@GregEwing Yes, but Sweden has those as well. The sales tax in the US is actually quite low in comparison but it is important to remember that the burden of sales tax is felt more on those who are spending most of their earnings, the rate is also constant leading many to feel that it is quite regressive in nature. If anything it goes to show that the US taxes are really quite a bit more progressive than one might assume because they rely less on taxes such as VAT and fuel taxes.
@@jhutt8002 Absolutely, the top tax rate in many European countries apply to people making 150k and not 400k....
@@zaydansari4408 VAT and other sales taxes indeed are regressive as you said. Politicians and economists linked to taxation often just don't want to talk about it at all, preferring to focus on income taxes, because it makes so much revenue. Trying move that taxation towards income or capital tax would be political suicide.
When you combine it to capital tax, which isn't progressive really here in Finland at least (There's one step where it rises to 33% from 31%...) and add in the tax deductions of income tax, it becomes much more flatter. Probably even regressive.
All that beautiful natural scenary aside, Sweden has undeniably fostered a wide array of thriving companies.
I'm proud to be Swedish.
The future belongs to us.
you are doing amazing work EE keep it up ;)
New drinking game: a shot every time he says "on pay-puh". :D
What can it mean? A paper? Paypal? Pay (on) par? Only Australians will know
Thank you very much for your insightful video! I think many economies can learn a lot from Sweden, especially when it comes to provide the best living standard and create most millionaires through the mere economy, and without any particularly strong natural resource base.
In particular:
1. Taxing successes to create a safety net from failures. You can safely doing your marble videos without risking your finances, especially given that health insurances are provided by the state. But if you are successful you have to pay taxes to allow others this safety. This fuels entrepreneurship, and also makes people specialize in areas they are more passionate about.
2. Taxing income without taxing wealth.
Thanks again!
Wow the depth of this video is truly astounding, well done!
I learn something new everyday....Thanks EE!!! 😀👍
Please do a video on the Iranian economy. I am half Persian and half American and I am always astonished of the opposite economics each country has. When I visit Iran and hear the local economics news it's somewhat obvious the government doesn't make the best decisions and it would be interesting to understand how they do make their economic policy decisions. Thanks
Thank you
As a Swede when i saw this video i clicked on it as fast as i could
Swedish pravda
Informative as ever. Love these videos.
These videos are all great. Thanks for putting in the time and please keep up the good work!
This is an AMAZING breakdown and analysis. I am just now revisiting this video after months of let it digest. And I plan to study this further with this as a guide. Thank you! I need to figure out why USA is so far off where it should be!
Wintergatan (The guys that made the marble machine) is a goddamn brilliant engineering and music channel and you should definitely watch it.
"Norway, Sweden's younger brother".
Me being Norwegian: "jeg har aldri hørt noe så grusomt i hele mitt liv"
Sanningen svider
Hej lillebror i väst.
It might not be correct, but I'm okay with this interpretation :)
Truth hurts 😎❤️
At least we didn't go Nazi during WW2💁🏻♂️
* sad denmark noises*
Danmark > Sverige. Hilsen storebror.
@@sjoroverpirat so you are counting Greenland and comparing sizes? Having twice the population and having more land connected to the mainland does not count toward being or not being the bigger country? Not saying it is a competition, but let's all agree that Sweden is in the center of Scandinavia and an important stratigic friend that you can all "protect" when the russian invades right? ;)
@@klankungen7794 If anything, Sweden are the traitors of Scandinavia. They let the Germans transport troops to Finland on their railroads. They snitches on lots of Norwegian refugees. They had many meetings and banquets with high ranking SS officers.
Denmark is simply a better neighbour. Copenhagen is the cultural capitol of Scandinavia. Norway is the moneymakers. Finland are the defenders, they beat anything invading them.
aboyhasnoname ppl still talking bout the world wars?
@@NotThatJojjo there is a big difference in being neutral and having parties with the SS. Some evidence suggest Sweden would have joined the axis, if the war didn't turn against them. Sweden profited majorly from selling supplies to the Germans in the war. I don't expect them to achieve much by joining the war, but one could expect them to not help the nazis. They also held norwegian ships hostage in their ports, on German command.
Great Report. Thank you.!
Props to the editor/director for selecting that amazing version of Abba's "Rich Man's World" as the intro music.
I am a swede. It´s awsome here! :)
*10:51** people who understand personal finance on a deep level, may not be surprised* I make significantly less money than Most people I know but have more assets than them,
If one exclude their primary home and any personal vehicles, my assets are much higher, and my net worth is likely higher(if not. increasing faster) than the average because of wise money/time management.
Income is just one(albeit important) aspect of wealth accumulation. 💪☻
Do Finland at some point, PLEASE. I BEG YOU!
I want to hear something new about my country on the internet, since all everyone talks about is the winter war and praise Simo Häyhä like he was the second coming of Christ.
We also love your school system ;)
@@rusitoexplorador Finland does a few, not very dramatic things. You have slightly more vocational schools, but so does places like Germany too. It has a pretty indendent school system.
no-one cares about a self cutting emo kid running around with knives.
1 year late but as a Swede I respect Finland and hope to visit soon.
Really good. I am swedish. There are pros and cons to our system. You captured that rather well.
Always interesting, thank you.
Last time I was this early Sweden was still an empire
we are still an empire the Iraqi defence minster gets subsidies from us and other minsters in Afghanistan I would watch out we are taking over the world
We're gonna re-take some danish parts soon, then we'll be an empire again!
@@edvin8379 nothing you said had any relation
@@akhashdhillon2159 because you're not smart enough to understand the social-democrats plan to conquer the world
@@nichlashansen8268 10d chess
Me:
Cringing when people call the Nordic countries socialist because they have a couple social welfare policies in place.
@Birger Jarl You mean lowest corporate taxes? Cause he explicitly said the taxes on rich are the highest in the world despite being very capitalistic
I know how you feel
Socialists are desperate to claim Capitalism's successes as their own, while shoving Laos, Vietnam, Cuba, Venezuela, etc. under the rug.
EE I have a question.
Why most of cold countries are rich?
Yeah good question TBH. There is actually a very strong correlation between nations with colder climates and wealth levels. I have not actually researched it in any capacity but my best guess is that colder nations needed to be resourceful and industrious to survive brutal winters, whereas warmer nations could get away with been lazy because they could count on abundant resources and an accommodating climate year round.
@xikarra Russia could very well have been rich if they just hadn't made colossal mistake after mistake during the last century - with the USSR (socialism only works when combined with smart capitalism, as Norway and Sweden are examples of), then "Shock Therapy", corruption and authoritarianism. How a country is run matters.
@@EconomicsExplained Temperature is also a thing, here in sweden the temperature usually stays between -10 to 25 C and that is a quite comfy working temperature. During our latest summers the temperature went above 30 for a longer period and that had a noticable effect on peoples workefficiency. A person I know who often critizises nations like greece and spain for beeing lazy even came out and said that he now understands why they dont work as mutch as other people, its just to hot to concentrate.
Now in those countries there is also a different work ethic but i would guess that it has been effected by this effect, whereas in sweden people have always been able to work and they have also been forced to work due to the environment, as you said.
As short as I can put it. colder countries have less mosquitos and less malaria keeping them behind. The only reason Russia isn't as rich is because of all its coastline and not one km of access to open sea all year around. see Wendover russia
We don't get lazy when it's too hot or cold, we get lazy when temperatures change to something we don't normally experience
Always appreciate these videos! Keep em coming!
This is soo good! Thank you!!
bruh is this like the series finale of this channel lol
Ok, but why are their crime dramas so good?
Hah, I definitely agree. I'm from Finland and jealous of Sweden's film/tv industry because of their ability tocproduce superb crime series and films 😄
Well, of you spend half a year in darkness, your mind goes dark.
Finland would make fantastic crime dramas, of they stopped killing themselves...
One major factor of the wealth inequality that this video fails to mention is debt. Swedish citizens has a huge debt to income ratio compared to many other nations. This is in large part due to what is mentioned in the video. A safety net, due to that and having such a large middle class that means a people can and do take much larger debts for things such as buying a house. This debt then makes it so that a large part of the middle class which have their own homes and live on a good salary seem to not be very well of in the wealth department. Which is true but also makes it easy to misunderstand that they are poor which they certainly are not. Also due to the very low rates of these loans people tend to not pay off their loan and instead use their savings on other things. Hence the debt never goes down. This often though is offset by that money goes on stocks or other investments instead of paying off the loan which has a much better yield.
you got the debt issue right. we really need to convince people to pay off debt.
Your videos are superb. Learning so much. Thanks.
I Liked the video before I even watched it because I enjoy your channel so much. Keep me coming!
Could you do a video about the potential of the Iranian economy ?
Why do you think so?
Iran hast pretty young population who are very well educated. In fact they suffer from a Braindrain. They have a lot of Oil and Gas, as well as many other resources. The Iranian Culture is pretty big so tourism could boom. They could work together with China to build the Silk Road, and create they're own Canal (Iranrud) with Russia etc.
I think Iran has a very big potential to become a Economic Powerhouse. But I am open for your contra arguments :)
@Felix von Baumgarten Iran's a damn great country. I'd argue that they have the most beautiful women. At least from what I've seen from Best Food Ever Review Show.
@@Original_BrosTV And the money who they make of the oil it's going right down
to Hassan Rouhani
pocket, End of that story
Here in Austria we have the same high-tax regime of the Swedes, but without the entrepreneurial, risk-taking spirit. This results in a very conservative mindset when it comes to technology and a rigid class-based society mostly divided along the lines of prosperous academics and working-class blue-collar workers. One economist explained it to me this way, "we'll never have a home-grown Apple or Microsoft here in Austria". There's however very little appetite for change - Austria consistently tops the charts as THE best place to live or country with the highest standard of living in the world.
0:15
You forgot Avicii and Swedish House Mafia
Subscribed. Excellent content.
The feeling you used to say the word steep with tells me everything I need to know
Lovely vid! I wish the nordic countries would have become one country! As a Swede I love Norway, Denmark, Finland etc..
Just one country called Scandinavia. I'm always annoyed by the fact that_
Scandinavia = Norway, Denmark, Sweden
but
Scandinavian Peninsula = Norway, Sweden, Finland.
I understand that one has to do with Culture 'n Language and the other with Geography, but I still find it weird.
Hey Economics Explained, I'm from Argentina. My country has very similar policies to Sweden, and yet, it's a mess. Welfare is used for populist actions (handing out food and cheap electronics before elections, using it to forcefully register voters as party members, etc). We have universal healthcare and free education up to the tertiary level. We're entitled to economic aid if we have children or study in high school or university. We have very high taxes on businesses and the rich, but the money is incredibly mismanaged. There's something more to prosperity other than income redistribution.
Starting a business legally is basically imposible. You evade taxes until you can actually afford them, otherwise, you never turn a profit. The government takes around half the salary you pay to your employees. Inspectors are always looking for bribes. Police demand compensation for their services, otherwise, your business is left to the hands of thieves and calling 911 won't make a difference. Unions forcefully unionize your employees even when they don't want to and actually threaten you with physical violence.
How can the same policies lead to such different outcomes? Argentina was at one point the richest nation on Earth, though mostly thanks to its great land, but industry had started to develop. And then it all went to shit.
Sweden had homogeneous population that's the huge factor for these policies to work. Politicians can't polarize people to hide their greed. Also, the fact that it had political stability for decades and had industrialization at gradual place.
Argentina is nothing like Sweden
Sweden taxes for businesses is 22% which is not very high. It taxes ordinary income like a bitch though.
Would love to see a video about Romania's economy
Romania is cool. Bucharest seems to have the same living standard as Sweden now.
In the stock footage at 14:03 the pause bar comes up for a second on a monitor that's clearly supposed to look like it's running a modeling program. This means the people who made the video went through all the steps to make it look professional except for preventing this issue by simply covering the monitors with greenscreen, which is just a bit silly if you ask me.
Thank you for coming to my TED talk
Love the style of relaxing narration with your aussie accent with beautiful videos of the country. cheers
It's cool to see a country that seems to use its taxes wisely
Sweden seems lovely! I like the balance of high income low capital gains taxes. In my state we have almost 50% (100k USD and above and short term capital gains) income tax and 25% long term capital gains.
Sweden is not a high income country.
tf are u on about@@winnied87
lmao I love how hard he went on the marble guy
Another huge insight I gained from your viewpoint, keep up the good work and stay safe!
Very pedagogical video. Thanks!
Economy of finland next? plz?
Sweden is also known for the Nobel Prize apart for from pewdiepie and meat balls
In addition to Norway. It's kind of a weird system, where Norway handels the Peace Prize while Sweden does the other Nobel's.
@@dæmnKris The peace prize is the lamest prize anyway
@@dæmnKris Norway handles the peace prize because Norway happened to be a part of Sweden when the Nobel prize started.
@@thecryingsoul Yeah... even the selection criteria is such a Ponzi scheme.
plz make a video on the economy of the ussr. thanks! :)
He has done one on Russia, but one the Economics of the USSR might be more difficult to be objective, as facts and statistics would have been strictly controlled by the regime.
the same fate as any country trying to get a Gini figure of 0.
Wow, "Wintergatan" made it into your video 😎🙏
Superb video!!