Sweden: An Idol Of The Welfare State Falls
I wanted to post about this last week, but seeing as the riots in Stockholm are still raging and the car (and school) fires still burning, it would seem that I haven't missed my chance. For those not up to date on what's happening in Sweden, riots have broken out over the past few days primarily among the immigrant population. Sweden has a notorious "open" immigration policy, and provides some of the world's most generous benefits for those moving into the country, including cheap housing and health benefits. However, it would seem that despite the ample handouts from the Swedish government (3rd largest welfare state in the OECD), it's just not enough for these entitled folks. Despite what the liberals may sew into their dinner place settings, a welfare state does not inspire gratitude into the recipients.There are three main causes that have been put forth as the cause of the riots: the disparity in wealth between the upper class and the lower class, high unemployment, and the "cutting" in social spending, which leftists claim has caused these issues. The last, naturally, is not the problem and is, in fact, a large part of what has caused the first two. Swedish writer and pro-immigration think tank member FREDRIK SEGERFELDT pretty much nails the libertarian argument in an essay for the Wall Street Journal:
Sweden retains the No. 1 spot in at least one OECD ranking—the largest employment gap between natives and foreign-born residents. Immigrants to Sweden, on average, have about 82% the employment rate as those born in the country. In the U.K., for example, the figure is 95%.The immigrants are not to blame. Rather, the main culprit has been Sweden's inability to adapt to its new residents, like so many other European countries. The biggest hindrance to assimilating foreigners has ironically been Sweden's dogged attempts to maintain absolute economic equality, and at very high rates. By sector-wide union agreements, the country has higher de-facto minimum wages than most of its peers, and so boasts fewer low-wage entry-level jobs than any other EU member.As a consequence, the employment rate of Swedish residents born in Somalia, for instance, is a mere 25%; for Iraqi immigrants, it's 39%. The same issue feeds into youth unemployment, which is also high in Sweden—though nowhere near the levels of Spain or Italy.In Sweden as elsewhere in Europe, barriers against new economic entrants have produced ghettos of idle misery. Immigrants and under-30s aren't starving or freezing, or even worried about whether their children can afford college. But too many of them have been priced out of a labor market that caters only to the skilled. They're receiving benefits that are still way too generous, but their human capital and productivity can't measure up.
And on top of that, these is this tidbit from the Guardian about Sweden's blockades to entrepreneurial efforts:
It was the left that, in 2005, abolished inheritance tax, so that a Swede will now pay no duty on being left a million kronor, but will face a tax of 67% for starting their own business.
So not only is the minimum wage stopping hiring, but should a Swede want to start a business that could actually afford to pay the high minimum wage, he or she would have to pay a 67% tax to even open the doors. This ridiculous wage system needs to end.I'm not a religious man, but one quote from the Bible pops into my mind when I look at Sweden and think of leftists: "Thou shalt not worship false idols."Receive access to ALL of our EXCLUSIVE bonus audio content – including “Conspiracy Corner”, “Degenerate Gamblers” and the “League of Liberty Podcast” by joining the Lions of Liberty Pride and supporting us on Patreon!
