Didn't the energy crisis hit Sweden particularly hard? On Tue, Jan 15, 2002 at 05:49:33PM -0500, Doug Henwood wrote: > Devine, James wrote: > > >BTW, Doug: how do you reconcile high profits under Swedish social democracy > >with such an egalitarian income distribution? > > A lot of the profits came from exports. As Swedish firms > multinationalized,production and associated profits moved abroad, and > cheaper labor than Swedish could be engaged. Upscaling also boosted > profits; Volvos were never cheap cars. > > I don't have evidence on this, but I'm speculating that high personal > tax rates encouraged firms to retain and re-invest profits. Anyone > else know? > > Doug >
-- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail [EMAIL PROTECTED]
