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Sweden is a prime example demonstrating that tax-and-spend welfare policies can work, correct? One hears enough about Sweden's near-miraculous feat of succeeding despite its high taxes and generous welfare benefits that one seldom questions whether Sweden's experiment in socialism has actually succeeded, but wonders instead how it has done so. The answer is that it has not succeeded--in the long term. Nor was it even possible to do so, since economic principles are inviolate.
Sweden is now having to face coming to grips with "the long term." The reason that the welfare state could work marginally well in the short term but not the ...