1. Skip to navigation
  2. Skip to content
  3. Skip to sidebar
Source link: http://archive.mises.org/4000/swedish-fdi-falls-to-zero-despite-the-welfare-state/

Swedish FDI falls to zero “despite” the welfare state

August 26, 2005 by

Today it was reported in the Swedish business news paper Dagens Industri that Foreign Direct Investments in Sweden fell to zero during the first half of this year.

It would be interesting to see how a certain Paul Krugman explains that. Last month, as you may remember, Krugman made a big deal about a decision by Toyota to build a car factory in Canada. This, he claimed, was the result of Southerners being too uneducated in Krugman’s economic theories to understand that they need to raise taxes so that they can spend enough money on government schools so that they will be able to build cars. In addition, Krugman argued that Canada’s socialist health care system was a contributing factor. I pointed out some of the errors in Krugman’s assertions, as did Krugman’s self-appointed enemy number one, Donald “Krugman Truth Squad” Luskin.

And now this. Sweden spends even tax money on education than do Canada. Government spending on education as relative to GDP is in fact higher in Sweden than anywhere else in the world except for neighboring Denmark and significantly higher than in Canada (6.29% in Sweden versus 5.17% in Canada and 4.76% in the US).

And of course, Sweden has the same kind of socialist health care system as Canada. How do Krugman then explain the fact that foreign investments have fallen to zero in Sweden?

{ 5 comments }

Libertarian Yid August 26, 2005 at 5:57 am

Well, ummm, they just don’t, y’know, understand, like, just how nice a place Sweden is, y’know?

Dennis Sperduto August 26, 2005 at 7:35 am

Maybe the problem is that those with investment capital are not educated enough to see what an excellent investment environment Sweden represents. These investors must be from countries that do not spend as much on education as does Sweden. How else could they make such errors regarding the efficient deployment of their capital? They would be better investors if they learned some economics and finance from Paul Krugman.

fancyleprachaun August 27, 2005 at 6:48 pm

Ha!

Dennis Sperduto wins, methinks.

Vedran Vuk August 28, 2005 at 11:06 pm

Hmmmm education and car factories……exactly what is the correlation? I thought car factories were one of those places that you work in when you dropped out of high school or didn’t go to college. I’m sure Sweden’s people who are more educated in basic high school jargon will have better skills necessary for welding a door. Yeah right. This is ridiculous.

Caley McKibbin March 4, 2010 at 11:25 pm

When I worked in a parts factory in Ontario they actually imported workers from the south.

Comments on this entry are closed.

Previous post:

Next post: