When Europe's finance ministers meet for a group photo, it's easy to spot the rebel -- Anders Borg has a ponytail and earring. What actually marks him out, though, is how he responded to the crash. While most countries in Europe borrowed massively, Borg did not. Since becoming Sweden's finance minister, his mission has been to pare back government. His 'stimulus' was a permanent tax cut. To critics, this was fiscal lunacy -- the so-called 'punk tax cutting' agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.
Three years on, it's pretty clear who was right. 'Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,' he says. 'Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.' Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit. The recovery started just in time for the 2010 Swedish election, in which the Conservatives were re-elected for the first time in history.
All this has taken Borg from curiosity to celebrity. The Financial Times recently declared him the most effective finance minister in Europe. When we meet in his Stockholm office on a Friday afternoon (he and his aide seem to be the only two left in the building) he says he is just carrying on 20 years of reform. 'Sweden was a textbook case of European economic sclerosis. Very high taxes and huge regulatory burden.' An economic crisis in the early 1990s forced Sweden on the road to balanced budgets, and Borg was determined the 2007 crash would not stop him cutting the size of government.
'Everybody was told "stimulus, stimulus, stimulus",' he says -- referring to the EU, IMF and the alphabet soup of agencies urging a global, debt-fuelled spending splurge. Borg, an economist, couldn't work out how this would help. 'It was surprising that Europe, given what we experienced in the 1970s and 80s with structural unemployment, believed that short-term Keynesianism could solve the problem.' Non-economists, he says, 'might have a tendency to fall for those kinds of messages'.
When Europe's finance ministers meet for a group photo, it's easy to spot the rebel -- Anders Borg has a ponytail and earring. What actually marks him out, though, is how he responded to the crash. While most countries in Europe borrowed massively, Borg did not. Since becoming Sweden's finance minister, his mission has been to pare back government. His 'stimulus' was a permanent tax cut. To critics, this was fiscal lunacy -- the so-called 'punk tax cutting' agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.
Three years on, it's pretty clear who was right. 'Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,' he says. 'Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.' Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit. The recovery started just in time for the 2010 Swedish election, in which the Conservatives were re-elected for the first time in history.
All this has taken Borg from curiosity to celebrity. The Financial Times recently declared him the most effective finance minister in Europe. When we meet in his Stockholm office on a Friday afternoon (he and his aide seem to be the only two left in the building) he says he is just carrying on 20 years of reform. 'Sweden was a textbook case of European economic sclerosis. Very high taxes and huge regulatory burden.' An economic crisis in the early 1990s forced Sweden on the road to balanced budgets, and Borg was determined the 2007 crash would not stop him cutting the size of government.
'Everybody was told "stimulus, stimulus, stimulus",' he says -- referring to the EU, IMF and the alphabet soup of agencies urging a global, debt-fuelled spending splurge. Borg, an economist, couldn't work out how this would help. 'It was surprising that Europe, given what we experienced in the 1970s and 80s with structural unemployment, believed that short-term Keynesianism could solve the problem.' Non-economists, he says, 'might have a tendency to fall for those kinds of messages'.
With regard to climate change and climate financing, Anders Borg expressed his disappointment that the negotiations ahead of the Climate Change Conference in Copenhagen were moving so slowly.
“At the meeting, we will prepare Council conclusions for the European Council in October with the aim of moving the process forward and showing greater EU leadership.”
When Europe's finance ministers meet for a group photo, it's easy to spot the rebel -- Anders Borg has a ponytail and earring. What actually marks him out, though, is how he responded to the crash. While most countries in Europe borrowed massively, Borg did not. Since becoming Sweden's finance minister, his mission has been to pare back government. His 'stimulus' was a permanent tax cut. To critics, this was fiscal lunacy -- the so-called 'punk tax cutting' agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.
Three years on, it's pretty clear who was right. 'Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,' he says. 'Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.' Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit. The recovery started just in time for the 2010 Swedish election, in which the Conservatives were re-elected for the first time in history.
All this has taken Borg from curiosity to celebrity. The Financial Times recently declared him the most effective finance minister in Europe. When we meet in his Stockholm office on a Friday afternoon (he and his aide seem to be the only two left in the building) he says he is just carrying on 20 years of reform. 'Sweden was a textbook case of European economic sclerosis. Very high taxes and huge regulatory burden.' An economic crisis in the early 1990s forced Sweden on the road to balanced budgets, and Borg was determined the 2007 crash would not stop him cutting the size of government.
'Everybody was told "stimulus, stimulus, stimulus",' he says -- referring to the EU, IMF and the alphabet soup of agencies urging a global, debt-fuelled spending splurge. Borg, an economist, couldn't work out how this would help. 'It was surprising that Europe, given what we experienced in the 1970s and 80s with structural unemployment, believed that short-term Keynesianism could solve the problem.' Non-economists, he says, 'might have a tendency to fall for those kinds of messages'.
With regard to climate change and climate financing, Anders Borg expressed his disappointment that the negotiations ahead of the Climate Change Conference in Copenhagen were moving so slowly.
“At the meeting, we will prepare Council conclusions for the European Council in October with the aim of moving the process forward and showing greater EU leadership.”
When Europe's finance ministers meet for a group photo, it's easy to spot the rebel -- Anders Borg has a ponytail and earring. What actually marks him out, though, is how he responded to the crash. While most countries in Europe borrowed massively, Borg did not. Since becoming Sweden's finance minister, his mission has been to pare back government. His 'stimulus' was a permanent tax cut. To critics, this was fiscal lunacy -- the so-called 'punk tax cutting' agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.
Three years on, it's pretty clear who was right. 'Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,' he says. 'Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.' Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit. The recovery started just in time for the 2010 Swedish election, in which the Conservatives were re-elected for the first time in history.
All this has taken Borg from curiosity to celebrity. The Financial Times recently declared him the most effective finance minister in Europe. When we meet in his Stockholm office on a Friday afternoon (he and his aide seem to be the only two left in the building) he says he is just carrying on 20 years of reform. 'Sweden was a textbook case of European economic sclerosis. Very high taxes and huge regulatory burden.' An economic crisis in the early 1990s forced Sweden on the road to balanced budgets, and Borg was determined the 2007 crash would not stop him cutting the size of government.
'Everybody was told "stimulus, stimulus, stimulus",' he says -- referring to the EU, IMF and the alphabet soup of agencies urging a global, debt-fuelled spending splurge. Borg, an economist, couldn't work out how this would help. 'It was surprising that Europe, given what we experienced in the 1970s and 80s with structural unemployment, believed that short-term Keynesianism could solve the problem.' Non-economists, he says, 'might have a tendency to fall for those kinds of messages'.
With regard to climate change and climate financing, Anders Borg expressed his disappointment that the negotiations ahead of the Climate Change Conference in Copenhagen were moving so slowly.
“At the meeting, we will prepare Council conclusions for the European Council in October with the aim of moving the process forward and showing greater EU leadership.”
I'd like to see how much Sweden spends on their military as a % of GDP compared with the US. Seems that any country where some form of austerity plan of paring back government and lowering taxes has worked to stimulate the economy, they don't have a trillion dollar world spanning military industrial complex to support.
I'd love to see us cut spending across the board to balanced-budget levels, but it's not going to happen as long as the Repubs can scream "they hate the military" if anyone proposes defense spending cuts and the Dems can scream "they hate the children" when anyone proposes social spending cuts.
I don't have a lot of experience with vampires, but I have hunted werewolves. I shot one once, but by the time I got to it, it had turned back into my neighbor's dog.
Alfred_E._Neuman wrote:I'd like to see how much Sweden spends on their military as a % of GDP compared with the US. Seems that any country where some form of austerity plan of paring back government and lowering taxes has worked to stimulate the economy, they don't have a trillion dollar world spanning military industrial complex to support.
