Country Analysis: Sweden and Its Political Economy Essay

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Compared to other nations in this world, economically, Sweden is in fact one of the wealthiest nations in the world. This nation is one of the wealthiest nations in this world is because of its peace and neutrality, high tech capitalism and general welfare benefits. Sweden’s political economy can be broken down by its political economic system (Social Democracy), economic regulation, outcome, and regime type. Other factors such as why Sweden hasn’t changed its currency into the Euro can also be an explanation to why its nation has been able to function so well economically. Capitalism and welfare benefits are very important to the Social Democrats in Sweden. According to an article in the New York Times, elections in Sweden “gave an…show more content…
According, to the World Bank Data website, as of 2012, Sweden’s income has been at $525.7 billion. As for Sweden’s outcome would have some prosperity, some economic equality, and some political equality as well. Social Democracy also values inequality more and regulation as well. Essentially, since Sweden’s taxes are high, its citizens will not buy as much consumer good products. However, if Sweden were to ever lower its taxes than more of its citizens will buy more consumer good products. This also explains the reason why its people rely so much on its welfare system. Sweden’s regime type will also be democratic. In late 2003, Sweden had the opportunity to change their currency from the Swedish Krona to Euro. However, when it came to the decision Sweden decided to have their currency of the Swedish Krona remain the same, rather than to change it. According to a New York Times article, “Much of the antipathy is rooted in politics rather than economics, with fears about the loss of national sovereignty and the surrendering of fiscal and monetary independence high on the list” (Landler, The New York Times, 2003). Basically, the reason for Sweden not accepting the Euro system was because its people were concerned about the impact it would on the nation’s economy and the nation’s sovereignty. Finally, these are the reasons to why Sweden is a wealthy
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