Hoover InstitutionStanford University
What Democratic Socialism Does to Economic Prosperity

Published: June 19, 2019

Many Americans support “democratic socialism” and point to Sweden as a successful example. However, Sweden’s experiment with socialist policies was a disaster that significantly reduced its economic growth for decades. To restore growth and prosperity, the country had to undertake major market-based reforms.

Discussion Questions

  1. Despite the results, why is there growing support for democratic socialism?
  2. Can democratic socialism ever function properly?

Additional Resources

  • Read “How Sweden Overcame Socialism” by Lee E. Ohanian and Jesús Fernández-Villaverde, available here.
  • Watch “Socialism’s Empty Promises” by Milton Friedman, David Davenport, Allan Meltzer, Thomas Sowell. Available here. 
  • Read “Lessons From The European Welfare State” by Allan H. Meltzer. Available here.

Cast

Lee Ohanian

Lee Ohanian

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