According to the 2023 Index of Economic Freedom, Sweden is among the most market-oriented economies worldwide. Overall, it ranks in 10th place, far ahead of the United States (25th) and the UK (28st). But public spending is still high, and while income tax rates have come down considerably from their peak in the 1970s and 1980s, they are still higher than almost anywhere else in the world.
In other words, despite the ascendance of capitalist elements, Sweden is not entirely free of socialist influences. However, the image of Sweden and other Scandinavian countries as strongholds of socialism harks back to the 1970s and 1980s. During the period of socialist welfare-state expansion from 1970 to 1991, Sweden dropped far behind many of its European competitors. From fourth place in the OECD per-capita GDP ranking in 1970, socialist-era Sweden had dropped to 16th place by 1995.
The socialist agenda damaged the Swedish economy and resulted in prominent entrepreneurs leaving the country in frustration. Ikea founder Ingvar Kamprad was one of them. The marginal income tax rate of 85 percent was supplemented by a wealth tax on his personal assets, which forced him to borrow money........